To all my nonprofit leaders out there, here are a few updates from the IRS your nonprofit needs to be aware of. Check them out and do share them with your board of directors.
1. New options for automatically revoked organizations to apply for reinstatement
Organizations that have had their tax-exempt status automatically revoked for not filing required 990 series returns may apply for reinstatement. Revenue Procedure 2014-11 provides four options for applying for reinstatement and explains how the new procedures apply to pending and recently approved applications.
Revenue Procedure 2014-11 modifies and supersedes the procedures described in Notice 2011-44.
Also see: Automatic Revocation – How to have your tax-exempt status retroactively reinstated
2. IRS issues proposed correction and disclosure procedures for failures to meet new requirements for charitable hospitals; invites public comments
Notice 2014-3 contains a proposed revenue procedure that provides correction and disclosure procedures under which certain failures to meet the requirements of § 501(r) of the Internal Revenue Code will be excused for purposes of § 501(r)(1) and 501(r)(2)(B). This notice invites comments regarding the procedures set forth in the proposed revenue procedure, including what additional examples, if any, would be helpful and whether hospitals should be required to make additional disclosures.
3. IRS confirms charitable hospitals may continue to rely on proposed regulations pending further guidance
Notice 2014-2 confirms that hospital organizations can rely on proposed regulations under section 501(r) of the Internal Revenue Code published onJune 26, 2012, and April 5, 2013, pending the publication of final regulations or other applicable guidance.
4. Read current guidance on user fees for employee plans and exempt organizations.
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