Application for Charity Status
Revised
A new form from the IRS
that streamlines the process by which charitable
organizations seek tax-exempt status also will help
the service spot potentially abusive charities (
www.irs.gov/newsroom/article/ ). In addition
requiring more information up front will mean fewer
contacts between the IRS and the organizations are
necessary. The revised Form 1023, Application
for Exemption Under Section 501(c)(3) of the
Internal Revenue Code, is available online at
www.irs.gov .
Printed copies of the form and instructions are
available from the IRS at 800-829-3676.
IRS Changes Terms for Settlement
The Appeals Division of the IRS has
reassessed and tightened the guidelines under
which it will accept settlement offers from
taxpayers that participated in certain abusive
transactions, such as reporting losses and
deductions from lease strips or from
inflated-basis assets derived from them or in
intermediary transactions (
www.irs.gov/newsroom/article/0,,id=130347,00.html
). Under the new guidelines the IRS
will not settle unless taxpayers concede (agree to
the disallowance of) 100% of the claimed losses or
deductions, reduced only by the amount of
transaction costs up to 10% of such claimed losses
or deductions. Furthermore, taxpayers also must
concede 50% of the accuracy-related penalty at
issue. To settle their cases, taxpayers must enter
into a closing agreement with the IRS that
conforms to these revised guidelines.
Reminder: Mileage Rates Set for 2005
The IRS reset the optional standard
mileage rates for 2005 in computing the deductible
costs of operating an automobile for business,
charitable, medical or moving expense purposes (
www.irs.gov/newsroom/article/ ). As
of January 1, 2005, the standard mileage rates for
the use of a car (including a van, pickup or panel
truck) for business purposes was set at 40.5 cents
a mile; for medical or moving expenses, 15 cents a
mile; and when providing services to a charity, 14
cents a mile. |
Keeping you informed and prepared amid the coronavirus outbreak
Excel walk-through: Sparklines