| Installment Agreements |
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| The Internal Revenue Service wants you to pay as much of your federal income tax liability as soon as possible. In order to implement this goal, the IRS allows taxpayers who cannot pay the full amount owed on April 15th to apply for an installment agreement, under which the taxpayer will make equal monthly payments until the full amount of the debt to the government is eliminated. More... |
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| Public Disclosure Requirements for Exempt Organizations |
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| Tax-exempt organizations other than private foundations are now required to provide copies of certain tax documents to anyone who requests them. If the request is made in person, the organization is usually obligated to provide a copy immediately, and if the request is written, the exempt organization has 30 days to comply. These requirements are in addition to the exempt organization's obligation to make their tax documents available for public inspection. More... |
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| Tax on Unrelated Business Income of Exempt Organizations |
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| Even if a nonprofit organization is granted tax-exempt status by the Internal Revenue Service, it may still be subject to taxation on any unrelated business income. Unrelated business taxable income (UBTI) is defined as income from a trade or business regularly carried on by an exempt organization if the trade or business is not substantially related to the exempt purpose of the organization. In determining whether an activity is "regularly carried on," the Internal Revenue Service looks at the frequency and continuity with which it is pursued, and it is compared to the commercial activities of non-exempt organizations. More... |
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| Personal Service Corporations Formed to Evade Taxes |
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| A corporation whose employees/owners provide personal services in the fields of accounting, actuarial science, architecture, consulting, engineering, health, and the performing arts is a personal service corporation. An employee/owner is defined by the Internal Revenue Service as an individual who owns, either directly or indirectly, more than 10 percent of the outstanding stock of the corporation on any day of the tax year. More... |
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| Social Welfare Organizations |
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| An organization that operates only to promote social welfare may qualify for tax-exempt status under Internal Revenue Code Section 501(c)(4). The organization must be operated exclusively to promote social welfare, which means that it must work primarily to further the common good and general welfare of the community, such as by bringing about civic betterment and social improvements. No part of the organization's net earnings may benefit any private shareholder or individual, and if the organization provides an excess benefit to certain persons, the Internal Revenue Service may impose an excise tax on the group. More... |
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