EO Update June 20, 2005
Issue Number: 2005-09
Inside this Issue
Donated Vehicles Guidance Published
Report of the ACT
New Testimony Page on irs.gov
Updated Form 1023 FAQs on irs.gov
Exempt Organizations e-File Update
1. Donated Vehicles Guidance Published
The IRS and Treasury Department have issued guidance on charitable deductions for donated vehicles. The rules implement the American Jobs Creation Act of 2005, which (1) generally limits the deduction to the actual sale price of the vehicle when sold by the charity, and (2) requires donors to get a timely acknowledgment from the charity to claim the deduction.
Complete information, including a link to the published guidance, is available on the IRS website for tax-exempt organizations.
2. Report of the ACT
The Advisory Committee on Tax Exempt and Government Entities issued its fourth report of recommendations on June 8, 2005.
The ACT's recommendations for the Exempt Organizations Division (EO) of the IRS focus on improving compliance through educating new charities about their responsibilities and reducing compliance burdens.
The complete report is available on the IRS website for tax-exempt organizations.
3. New Testimony Page on irs.gov
The IRS website for tax-exempt organizations has been expanded to include a page describing recent testimony by IRS and Treasury Department officials on issues of interest to tax-exempt organizations.
The testimony page includes links to recent testimony by IRS Commissioner Mark Everson and Tax Exempt/Government Entities Commissioner Steven T. Miller on conservation easements, the tax-exempt health care sector, and abusive tax avoidance transactions.
4. Updated Form 1023 FAQs on irs.gov
Frequently asked questions about the Form 1023 exemption application form have been updated and posted on the IRS website.
Form 1023 was revised in October 2004, and use of the new version of the form became mandatory May 6, 2005. The FAQs provide background about the form revision effort, the IRS' experience with the new form so far, and answer questions frequently posed by organizations completing the form.
5. Exempt Organizations e-File Update
As of June 12, 2005, 3,374 exempt organization returns have been filed using Modernized e-File this year (see table below for a break down of e-File returns received).
Forms 990, 990-EZ, 990-PF and 1120-POL, as well as extension applications Forms 8868 (for 990-series forms) and 7004 (for 1120-POL), are available through Modernized e-File. e-file saves you time and effort, and eliminates errors with built-in accuracy checks in the return preparation software. Visit the e-File for Charities and Nonprofits website for more information about e-File, including approved software vendors.
EXEMPT ORGANIZATIONS E-FILE RETURNS RECEIVED
|Form||Week Ending 6/12/2005||Year-to-Date|