Issue Number: 2012-7
1. Reporting Partnership Interests using Form 1065/Schedule K-1 Optional for Tax Year 2011
The 2011 Form 990, Appendix F instruction (and equivalent instructions in Parts VIII and X) to report interests in joint ventures and other partnerships using Form 1065, Schedule K-1 information is optional for Tax Year 2011. The parallel Form 990-EZ instruction for reporting the organization’s share of assets of joint ventures and partnerships on line 24 using Schedule K-1 information is also optional for tax year 2011.
In reporting on Form 990 or Form 990-EZ its proportionate interests in the revenue, expenses and assets of joint ventures and other partnerships in which it has an ownership interest, an organization generally may report, as in prior years, based on its books and records. Schedule K-1 information must still be used in reporting interests in joint ventures and other partnerships in Schedules H and R.
2. IRS Releases FY 2011 Data Book
The Internal Revenue Service recently released the 2011 IRS Data Book, a snapshot of agency activities for fiscal year 2011 – Oct. 1, 2010 to Sept. 30, 2011. During the year, the IRS collected $2.4 trillion and processed more than 234 million tax returns.
In addition to information on taxes collected and returns processed, the report also includes information about enforcement, taxpayer assistance, and the IRS budget and workforce, among others.
3. IRS Revises Publication 1771
The IRS has released Publication 1771 (rev. September 2011), Charitable Contributions - Substantiation and Disclosure Requirements, which explains general rules and specifications for documenting charitable deductions and explains new guidelines that allow charities to electronically mail documentation to donors.
4. IRS Issues Final Regulations on Public Inspection of EO Material
The IRS recently published final regulations on Public Inspection of Material Relating to Tax-Exempt Organizations (TD 9581) that affects organizations that were exempt but are no longer exempt from Federal income tax, and organizations that were denied tax-exempt status.
5. Register for Upcoming Workshops for Small and Medium-sized 501(c)(3)s
It's not too late to register for our popular workshops for small and medium-sized 501(c)(3) organizations in California in April.
Each one-day workshop, presented by experienced Exempt Organizations specialists, will explain what 501(c)(3) organizations must do to keep their tax-exempt status and comply with tax obligations.
This popular introductory workshop is designed especially for administrators or volunteers who are responsible for an organization's tax compliance as well as those interested in careers in the nonprofit sector.
To register, click on the city of your choice. Registration is now available for the following workshop locations:
For a description of the workshop, as well as a current schedule of dates/locations, go to Calendar of Events.
6. YouTube: Work Opportunity Tax Credit
7. Deducting Charitable Contributions: Eight Essentials
Donations made to qualified organizations may help reduce the amount of tax you pay. The IRS has eight essential tips to help ensure your contributions pay off on your tax return.
If you have a technical or procedural question relating to Exempt Organizations, visit the Charities and Nonprofits homepage on the IRS.gov Web site.
If you have a specific question about exempt organizations, call EO Customer Account Services at 1-877-829-5500.