Line items

Small Exempt Organizations Get EZ Application

Small organizations seeking tax-exempt status under Sec. 501(c)(3) can now use a streamlined application process (T.D. 9674 and Rev. Proc. 2014-40).

In place of the 26-page Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, eligible organizations can use the new three-page Form 1023-EZ. To do so, organizations must have $50,000 or less in annual gross receipts and assets of $250,000 or less. Churches; hospitals; and schools, colleges, and universities must still use the long form, as well as organizations formed under the laws of a foreign country or with a foreign mailing address and certain others.

Form 1023-EZ must be e-filed with payment of a $400 filing fee.

Final Rules Widen Use of Truncated TINs

In its efforts to combat tax identity theft, the IRS issued final regulations (T.D. 9675) allowing truncated taxpayer identification numbers and employer identification numbers on most payee statements and certain other documents, both on paper and in electronic form. The regulations expand truncation from the proposed rules (REG-148873-09) (see previous Tax Matters coverage, “Line Items: Rules Proposed for Partial Identifying Numbers,” March 2013, page 71). A number is truncated by replacing the first five digits of the nine-digit number with X’s or asterisks.

Fiduciary Fee Regs. Delayed

The IRS delayed until next year the effective date of final regulations governing which costs of trusts and estates are subject to the 2% floor on miscellaneous itemized deductions. The regulations, T.D. 9664, originally applied to tax years beginning on or after May 9, 2014 (see “Tax Matters: Final Rules on Fiduciary Fees Keep ‘Unbundling’ Requirement,” JofA, Aug. 2014, page 72); they now apply to tax years beginning on or after Jan. 1, 2015. In an amendment, the IRS acknowledged that deadline did not give fiduciaries enough time to implement the regulations’ changes, particularly the need to “unbundle” a fee that is partly subject to the 2% floor and partly not.


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.