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EO Update September 22, 2005

Issue 2005-13


Inside This Issue:

  1. Hurricane Relief: IRS Leave Donation Program
  2. e-file in 2006: Phone in to Learn
  3. Proposed Regulations Issued: Section 4958 Intermediate Sanctions and Recognition of Exempt Status


1. Hurricane Relief: IRS Leave Donation Program

Individuals looking to help with hurricane relief efforts can donate unused leave, in exchange for a cash contribution from their employer to a qualified organization providing help to Hurricane Katrina victims. This program will remain in effect for all payments made through December 31, 2006.

For further information about how individuals and employers can participate in this program, see the Leave Donation Program section on the IRS Hurricane Katrina Relief website. For further information and updates about IRS initiatives to support tax-exempt organizations providing hurricane relief, bookmark the Support for Organizations Providing Hurricane Relief section of the website.


2. e-file in 2006: Phone in to Learn

Two IRS Phone Forums will give representatives of tax-exempt organizations an opportunity to learn more about modernized e-file for charities and nonprofits.

During the first forum, scheduled for Wednesday, October 5 from 1-3 pm Eastern, IRS experts will discuss regulations requiring large tax-exempt organizations to use e-file, effective on a graduated basis beginning in 2006. Representatives of organizations with more than $100 million in assets and filing more than 250 returns, which will be required to file electronically in 2006, are invited to participate. Pre-registration, via the AT&T Teleconference Services website, is now open. Participants who have not previously used the AT&T Teleconference Services site will need to create a user profile, including username and password, in order to register.

The second forum, tentatively scheduled for November 1, 2005, will cover general topics on e-file for charities and nonprofits. Registration for the second forum has not yet opened.

Both forums are being offered at no charge to participants, although space is limited. Organizations with multiple representatives interested in participating are encouraged to call in as a group, rather than individually. For further information about these and other upcoming outreach events, check the Calendar of Events on

Modernized e-file has been available for organizations filing Form 990 or 990-EZ since 2004, and became available for Form 990-PF in 2005. As of September 18, 2005, the IRS has received 4,580 exempt organizations returns electronically this year.


 Form Year-to-Date 
 Total  4,580
 Form 990  1,976
 Form 990-EZ  942
 Form 990-PF  89
 Form 1120-POL  1
 Form 8868  1,569
 Form 7004  3

For further information about e-file availability, approved software providers, and the new regulations, visit the e-file for charities and Nonprofits website on


3. Proposed Regulations Issued: Section 4958 Intermediate Sanctions and Recognition of Exempt Status

The IRS and Treasury Department published proposed regulations in the September 9, 2005 Federal Register which amend the existing regulations under section 501(c)(3) and add several examples to illustrate the requirement that an organization serve a public rather than a private interest. The proposed regulations also provide guidance on factors the IRS will consider in determining whether a 501(c)(3) organization that engages in one or more excess benefit transactions described in section 4958 will continue to be recognized as exempt under section 501(c)(3).

Written comments and requests for a public hearing can be submitted to:
CC:PA:LPD:PR (REG-111257-05), Room 5203
Internal Revenue Service
PO Box 7604
Ben Franklin Station
Washington, DC 20044

Comments must be received by December 8, 2005.


Page Last Reviewed or Updated: 03-Jun-2013