Category Archives: IRS

IRS E-file

IRS Identifies 100,000 Preparers Who Failed to Follow New PTIN Rules

As part of its new oversight program of the nation’s tax return preparation industry, the Internal Revenue Service today announced it will send letters to approximately 100,000 tax return preparers who prepared returns in 2011 but failed to follow new requirements.

In 2010, the IRS launched an initiative to increase its oversight of the tax return preparation industry and regulate the conduct of tax return preparers. All paid tax return preparers must obtain a Preparer Tax Identification Number (PTIN) and, when required to do so, sign their names and include their PTINs on the returns and refund claims they prepare for compensation.

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Visit IRS.gov to Get Quick Tax Answers this Summer

The IRS Web site – www.irs.gov – makes it easy to get answers to your tax questions all year round. The site is available 24 hours a day, 7 days a week. You can also download forms and publications and even check the status of your refund. The IRS Web site has a wealth of information.

Here are six reasons to visit IRS.gov this summer.

  1. The latest news Get up-to-date information on new tax law changes. Several new laws are enacted almost every year and usually there are provisions that affect almost every taxpayer.
  2. Easy-to-use tools Use the Interactive Tax Assistant (ITA) – a tool that asks a series of questions to provide answers to your tax law issues. The ITA tool covers a number of tax topics and does not require any sensitive information such as Social Security numbers.
  3. Withholding Calculator Calculate the right amount of withholding allowances on your W-4. The IRS Withholding Calculator can ensure you don’t have too much or too little income tax withheld from your pay.
  4. Check out a charity Search for charities in  Publication 78, Cumulative List of Organizations, to find out if an organization is exempt from federal taxation and, if so, how much of your contributions to that organization are tax deductible.
  5. Career opportunities Get information about careers at the IRS. No matter what your professional specialty, the IRS can offer you a variety of full-time career or seasonal job opportunities.
  6. Forms and publications You can view, download and order tax forms and publications at any hour.

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IRS Withholding Calculator Can Help Figure Your Tax

If you have too little federal tax withheld from your pay, you could end up owing a lot of money when you file your taxes. If you withhold too much, you will get a large refund next year, but that means you gave up the use of your money for several months during the year.

You may want to adjust your federal tax withholding with your employer.  You should also evaluate your withholding if you have recently married or divorced, added a dependent, purchased a home, changed jobs or retired.

The withholding calculator at IRS.gov can help you figure the correct amount of federal withholding and provide information you can use to complete a newForm W-4, Employee’s Withholding Allowance Certificate.

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IRS Identifies Organizations that Have Lost Tax-Exempt Status; Announces Special Steps to Help Revoked Organizations

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WASHINGTON –– The Internal Revenue Service today announced that approximately 275,000 organizations under the law have automatically lost their tax-exempt status because they did not file legally required annual reports for three consecutive years. The IRS believes the vast majority of these organizations are defunct, but it also announced special steps to help any existing organizations to apply for reinstatement of their tax-exempt status.

Congress passed the Pension Protection Act (PPA) in 2006, requiring most tax-exempt organizations to file an annual information return or notice with the IRS. For small organizations, the law imposed a filing requirement for the first time in 2007.  In addition, the law automatically revokes the tax-exempt status of any organization that does not file required returns or notices for three consecutive years.

For several years, the IRS has made an extensive effort to inform organizations of the changes in the law through multiple outreach and education avenues, including mailing more than 1 million notices to organizations that had not filed. In addition, last year the IRS published a list of at-risk groups and gave smaller organizations an additional five months to file required notices and come into compliance. About 50,000 organizations filed during this extension period. Overall, the IRS believes the vast majority of small tax-exempt organizations are now in compliance with the 2006 law. Continue reading →

Report Extension Tax form 8868 to get more time to file Form 990, Return of Organization Exempt From Income Tax.

Form 990, Return of Organization Exempt From Income Tax

Annual Electronic Filing Requirement for Small Tax-Exempt Organizations:

Many small tax-exempt organizations with annual gross receipts less than or equal to $50,000 now must submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, if they choose not to file Form 990 or 990-EZ. See the IRS website at www.irs.gov/charities and click on the Form 990-N (e-Postcard) tab for more information.

Paid preparers can no longer enter their social security numbers on page 1 in the signature block.

Purpose of 990 Forms

Forms 990 and 990-EZ are used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033.

An organization’s completed Form 990 or 990-EZ, and a section 501(c)(3) organization’s 990-T, Exempt Organization Business Income Tax Return, generally are available for public inspection as required by section 6104. Schedule B (Form 990, 990-EZ, or 990-PF), Schedule of Contributors, is available for public inspection for section 527 organizations filing Form 990 or 990-EZ. For other organizations that file Form 990 or Form 990-EZ, parts of Schedule B (Form 990, 990-EZ, or 990-PF), can be open to public inspection. See Appendix D and the instructions for Schedule B (Form 990, 990-EZ, or 990-PF) for more details.

Some members of the public rely on Form 990 or Form 990-EZ as their primary or sole source of information about a particular organization. How the public perceives an organization in such cases can be determined by information presented on its return. Therefore, the return must be complete, accurate, and fully describe the organization’s programs and accomplishments.

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