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Corporate Tax Software

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Corporate Tax Software

Corporate tax software Publication 970 - Additional Material Table of Contents AppendicesAppendix A. Corporate tax software Illustrated Example of Education Credits Glossary Appendices The following appendices are provided to help you claim the education benefits that will give you the lowest tax. Corporate tax software Appendix A—An illustrated example of education credits, including a filled-in Form 8863 showing how to claim both the American opportunity credit and lifetime learning credit for 2013. Corporate tax software Appendix B—A chart summarizing some of the major differences between the education tax benefits discussed in this publication. Corporate tax software It is intended only as a guide. Corporate tax software Look in this publication for more complete information. Corporate tax software   Appendix A. Corporate tax software Illustrated Example of Education Credits Dave and Valerie Jones are married and on their 2013 joint tax return they claim exemptions for their two dependent children, Sean (age 21, social security number: 000-00-0001) and Carey (age 18, social security number: 000–00–0002). Corporate tax software Their modified adjusted gross income (MAGI) on Form 1040, line 38 is $110,000. Corporate tax software Because Dave and Valerie have unusually high itemized deductions, their taxable income is $10,000 and their tax before credits is $1,000. Corporate tax software Sean enrolled as a full-time graduate student in August 2013 at California State College. Corporate tax software He graduated with his bachelor's degree in 2012 and did not attend school from January 2013 through July 2013. Corporate tax software His parents claimed the Hope Scholarship Credit for Sean for 2008 and the American opportunity credit for Sean for 2010, 2011, and 2012. Corporate tax software Carey enrolled full time as a freshman at the same college in January 2013 to begin working on her bachelor's degree. Corporate tax software In 2013, Dave and Valerie paid $7,000 in tuition for Sean and $8,500 in tuition for Carey. Corporate tax software California State College issued two Forms 1098-T, one for Sean and one for Carey, and sent them to the Joneses' residence. Corporate tax software California State College reports amounts billed in 2013 instead of amounts paid during 2013. Corporate tax software In completing Form 8863, the Joneses use the amounts they paid. Corporate tax software Neither Sean nor Carey has been convicted of a felony for possession or distribution of a controlled substance before the end of 2013. Corporate tax software Dave and Valerie figure their education credits by completing Form 8863. Corporate tax software They begin Form 8863 on page 2 before completing Part I on page 1. Corporate tax software Because the Joneses have two eligible students, they will complete page 2 twice, once for their son, Sean, and once for their daughter, Carey. Corporate tax software The Joneses decide to complete Part III for Carey first, as shown later. Corporate tax software They carry over the amount of $2,500 entered on Part III, line 30, to Part I, line 1. Corporate tax software The Joneses complete a separate Part III for their son Sean. Corporate tax software They check the “Yes” box on line 23, determine that Sean is not eligible for the American opportunity credit, and go to line 31 as instructed. Corporate tax software They figure their line 31 adjusted qualified education expenses for Sean to be $7,000. Corporate tax software Once they have completed Part III for each student, they figure their credits. Corporate tax software The Joneses figure their refundable American opportunity credit of $1,000 by completing Form 8863, Part I, lines 1 through 8. Corporate tax software They enter the amount from line 8, $1,000, on line 66 of their Form 1040. Corporate tax software The Joneses enter $7,000 on Part II, line 10, of Form 8863 and figure their tentative lifetime learning credit for 2013 to be $1,400 (line 12). Corporate tax software They cannot claim the full amount because their MAGI of $110,000 is greater than $107,000. Corporate tax software They enter the reduced amount of $1,190 (figured on Part II, line 18) on the Credit Limit Worksheet, line 1. Corporate tax software The $1,190 is added to their nonrefundable American opportunity credit ($1,500 on line 2 of the Credit Limit Worksheet) for a total nonrefundable credit of $2,690. Corporate tax software The Joneses enter $1,000 on line 7 of the Credit Limit Worksheet, which is the smaller of their tax from line 46 of their Form 1040 (which is $1,000) or the $2,690 on line 3 of the Credit Limit Worksheet. Corporate tax software They enter $1,000 on line 19, Part II of Form 8863 and on line 49 of Form 1040. Corporate tax software This image is too large to be displayed in the current screen. Corporate tax software Please click the link to view the image. Corporate tax software Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. Corporate tax software Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 8,500 2. Corporate tax software Less adjustments:     a. Corporate tax software Tax-free educational assistance received in 2013 allocable to the academic period   0     b. Corporate tax software Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. Corporate tax software Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. Corporate tax software Total adjustments (add lines 2a, 2b, and 2c) 0 4. Corporate tax software Adjusted qualified education expenses. Corporate tax software Subtract line 3 from line 1. Corporate tax software If zero or less, enter -0- 8,500 This image is too large to be displayed in the current screen. Corporate tax software Please click the link to view the image. Corporate tax software Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. Corporate tax software Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 7,000 2. Corporate tax software Less adjustments:     a. Corporate tax software Tax-free educational assistance received in 2013 allocable to the academic period   0     b. Corporate tax software Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. Corporate tax software Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. Corporate tax software Total adjustments (add lines 2a, 2b, and 2c) 0 4. Corporate tax software Adjusted qualified education expenses. Corporate tax software Subtract line 3 from line 1. Corporate tax software If zero or less, enter -0- 7,000 Credit Limit Worksheet (Form 8863 instructions) Nonrefundable Credit Worksheet 1. Corporate tax software Enter the amount from Form 8863, line 18 1. Corporate tax software 1,190 2. Corporate tax software Enter the amount from Form 8863, line 9 2. Corporate tax software 1,500 3. Corporate tax software Add lines 1 and 2 3. Corporate tax software 2,690 4. Corporate tax software Enter the amount from: Form 1040, line 46; or Form 1040A, line 28 4. Corporate tax software 1,000 5. Corporate tax software Enter the amount from either: Form 1040, lines 47 and 48, and the amount from Schedule R included on Form 1040, line 53; or Form 1040A, lines 29 and 30 5. Corporate tax software 0 6. Corporate tax software Subtract line 5 from line 4 6. Corporate tax software 1,000 7. Corporate tax software   Enter the smaller of line 3 or line 6 here and on Form 8863, line 19 7. Corporate tax software 1,000 This image is too large to be displayed in the current screen. Corporate tax software Please click the link to view the image. Corporate tax software Form 8863 for Dave and Valerie Jones This image is too large to be displayed in the current screen. Corporate tax software Please click the link to view the image. Corporate tax software Carey Jones page 2 This image is too large to be displayed in the current screen. Corporate tax software Please click the link to view the image. Corporate tax software Filled-in Form 8863 Jones page 2 Appendix B. Corporate tax software Highlights of Education Tax Benefits for Tax Year 2013 This chart highlights some differences among the benefits discussed in this publication. Corporate tax software See the text for definitions and details. Corporate tax software Do not rely on this chart alone. Corporate tax software    Caution:You generally cannot claim more than one benefit for the same education expense. Corporate tax software   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What is your  benefit? Amounts received may not be taxable   Credits can reduce the amount of tax you have to pay. Corporate tax software    40% of the credit may be refundable (limited to $1,000 per student). Corporate tax software Credits can reduce amount of tax you must pay Can deduct interest paid Can deduct expenses Earnings not  taxed Earnings not taxed No 10%  additional tax on early distribution Interest not taxed Employer benefits not taxed Can deduct expenses What is the annual limit? None $2,500 credit per student $2,000 credit per tax return     $2,500 deduction $4,000 deduction $2,000 contribution per beneficiary None Amount of qualified  education expenses Amount of qualified  education expenses $5,250 exclusion Amount of qualifying work-related education expenses What expenses  qualify besides  tuition and required enrollment fees? Course-related expenses such as fees, books, supplies, and equipment Course-related books, supplies, and equipment Amounts paid for required books, etc. Corporate tax software , that must be paid to the educational institution, etc. Corporate tax software , are required fees Books Supplies Equipment  Room & board  Transportation  Other necessary expenses  None Books Supplies Equipment  Expenses for special needs services  Payments to QTP  Higher education: Room & board if  at least half-time  student  Elem/sec (K–12) education: Tutoring Room & board Uniforms Transportation Computer  access Supplementary expenses Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Payments to Coverdell ESA  Payments to QTP Books Supplies Equipment Transportation  Travel  Other necessary expenses   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What education qualifies? Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate  Courses to acquire or improve job skills    Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Required by employer or law to keep present job, salary, status  Maintain or improve job skills What are some of the other  conditions that  apply? Must be in degree or vocational program  Payment of tuition and required fees must be allowed under the grant Can be claimed for only 4 tax years (which includes years Hope Scholarship Credit claimed)  Must be enrolled at least half-time in degree program  No felony drug conviction(s)  Must not have completed first 4 years of postsecondary education before end of preceding tax year. Corporate tax software   No other conditions Must have been at least half-time  student in degree program Cannot claim both deduction & education credit for same student in same year Assets must be distributed at age 30 unless special  needs beneficiary No other conditions No other conditions Applies only to qualified series  EE bonds issued after 1989 or series I bonds No other conditions Cannot be to  meet minimum educational requirements of present trade/business  Cannot qualify  you for new trade/business   In what income  range do benefits  phase out? No phaseout $80,000 – $90,000  $160,000 – $180,000 for joint returns $53,000 – $63,000  $107,000 – $127,000 for joint returns $60,000 – $75,000  $125,000 –  $155,000 for  joint returns  $60,000 – $80,000  $130,000 –  $160,000 for  joint returns  $95,000 – $110,000  $190,000 – $220,000 for  joint returns No phaseout No phaseout   No phaseout No phaseout † Any nontaxable distribution is limited to the amount that does not exceed qualified education expenses. Corporate tax software Glossary The education benefits included in this publication were enacted over many years, leading to a number of common terms being defined differently from one benefit to the next. Corporate tax software For example, an eligible educational institution means one thing when determining if earnings from a Coverdell education savings account are not taxable and something else when determining if a scholarship or fellowship is not taxable. Corporate tax software For each term listed below that has more than one definition, the definition for each education benefit is listed. Corporate tax software Academic period:   A semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Corporate tax software If an educational institution uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Corporate tax software Adjusted qualified education expenses (AQEE):    Qualified education expenses (defined later) reduced by any tax-free educational assistance, such as a tax-free scholarship or employer-provided educational assistance. Corporate tax software They must also be reduced by any qualified education expenses deducted elsewhere on your return, used to determine an education credit or other benefit, or used to determine a tax-free distribution. Corporate tax software For information on a specific benefit, see the appropriate chapter in this publication. Corporate tax software Candidate for a degree:   A student who meets either of the following requirements. Corporate tax software Attends a primary or secondary school or pursues a degree at a college or university, or Attends an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. Corporate tax software Designated beneficiary:   The individual named in the document creating the account/plan who is to receive the benefit of the funds in the account/plan. Corporate tax software Eligible educational institution:    American opportunity credit. Corporate tax software Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Corporate tax software It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Corporate tax software Coverdell education savings account (ESA). Corporate tax software Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Corporate tax software It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Corporate tax software Also included is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. Corporate tax software Education savings bond program. Corporate tax software Same as American opportunity credit in this category. Corporate tax software IRA, early distributions from. Corporate tax software Same as American opportunity credit in this category. Corporate tax software Lifetime learning credit. Corporate tax software Same as American opportunity credit in this category. Corporate tax software Qualified tuition program (QTP). Corporate tax software Same as American opportunity credit in this category. Corporate tax software Scholarships and fellowships. Corporate tax software An institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Corporate tax software Student loan, cancellation of. Corporate tax software Same as Scholarships and fellowships in this category. Corporate tax software Student loan interest deduction. Corporate tax software Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Corporate tax software It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Corporate tax software Also included is an institution that conducts an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Corporate tax software Tuition and fees deduction. Corporate tax software Same as American opportunity credit in this category. Corporate tax software Eligible student:    American opportunity credit. Corporate tax software A student who meets all of the following requirements for the tax year for which the credit is being determined. Corporate tax software Did not have expenses that were used to figure an American opportunity or Hope Scholarship Credit in any 4 earlier tax years. Corporate tax software Had not completed the first 4 years of postsecondary education (generally the freshman through senior years). Corporate tax software For at least one academic period beginning in the tax year, was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. Corporate tax software Was free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year. Corporate tax software Lifetime learning credit. Corporate tax software A student who is enrolled in one or more courses at an eligible educational institution. Corporate tax software Student loan interest deduction. Corporate tax software A student who was enrolled at least half-time in a program leading to a postsecondary degree, certificate, or other recognized educational credential at an eligible educational institution. Corporate tax software Tuition and fees deduction. Corporate tax software A student who is enrolled in one or more courses at an eligible educational institution. Corporate tax software Half-time student:   A student who is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Corporate tax software Modified adjusted gross income (MAGI):    American opportunity credit. Corporate tax software Adjusted gross income (AGI) as figured on the federal income tax return, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Corporate tax software Coverdell education savings account (ESA). Corporate tax software Same as American opportunity credit in this category. Corporate tax software Education savings bond program. Corporate tax software Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any savings bond interest exclusion and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, Exclusion of income by bona fide residents of Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for student loan interest, Deduction for tuition and fees, and Deduction for domestic production activities. Corporate tax software Lifetime learning credit. Corporate tax software Same as American opportunity credit in this category. Corporate tax software Student loan interest deduction. Corporate tax software Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any student loan interest deduction, tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Corporate tax software Tuition and fees deduction. Corporate tax software Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Corporate tax software Phaseout:   The amount of credit or deduction allowed is reduced when modified adjusted gross income (MAGI) is greater than a specified amount of income. Corporate tax software Qualified education expenses:   See pertinent chapter for specific items. Corporate tax software    American opportunity credit. Corporate tax software Tuition and certain related expenses (including student activity fees) required for enrollment or attendance at an eligible educational institution. Corporate tax software Books, supplies, and equipment needed for a course of study are included even if not purchased from the educational institution. Corporate tax software Does not include expenses for room and board. Corporate tax software Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program. Corporate tax software Coverdell education savings account (ESA). Corporate tax software Expenses related to or required for enrollment or attendance of the designated beneficiary at an eligible elementary, secondary, or postsecondary school. Corporate tax software Many specialized expenses included for K–12. Corporate tax software Also includes expenses for special needs services and contribution to qualified tuition program (QTP). Corporate tax software Education savings bond program. Corporate tax software Tuition and fees required to enroll at or attend an eligible educational institution. Corporate tax software Also includes contributions to a qualified tuition program (QTP) or Coverdell education savings account (ESA). Corporate tax software Does not include expenses for room and board. Corporate tax software Does not include expenses for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Corporate tax software IRA, early distributions from. Corporate tax software Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. Corporate tax software Also includes expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance. Corporate tax software Lifetime learning credit. Corporate tax software Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Corporate tax software Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Corporate tax software Does not include expenses for room and board. Corporate tax software Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program, unless taken by the student to acquire or improve job skills. Corporate tax software Qualified tuition program (QTP). Corporate tax software Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. Corporate tax software Includes expenses for special needs services and computer access. Corporate tax software Scholarships and fellowships. Corporate tax software Expenses for tuition and fees required to enroll at or attend an eligible educational institution, and course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Corporate tax software Course-related items must be required of all students in the course of instruction. Corporate tax software Student loan interest deduction. Corporate tax software Total costs of attending an eligible educational institution, including graduate school (however, limitations may apply to the cost of room and board allowed). Corporate tax software Tuition and fees deduction. Corporate tax software Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Corporate tax software Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Corporate tax software Recapture:   To include as income on your current year's return an amount allowed as a deduction in a prior year. Corporate tax software To include as tax on your current year's return an amount allowed as a credit in a prior year. Corporate tax software Rollover:   A tax-free distribution to you of cash or other assets from a tax-favored plan that you contribute to another tax-favored plan. Corporate tax software Transfer:   A movement of funds in a tax-favored plan from one trustee directly to another, either at your request or at the trustee's request. Corporate tax software Prev  Up  Next   Home   More Online Publications
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Understanding Your CP163 Notice

You received this notice to remind you of the amount you owe in tax, penalty and interest.


What you need to do

  • Read your notice carefully ― it will explain how much money you owe on your taxes.

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Answers to Common Questions

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Page Last Reviewed or Updated: 26-Mar-2014

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The Corporate Tax Software

Corporate tax software Publication 557 - Introductory Material Table of Contents What's New Reminders Introduction What's New Proposed regulations on “good faith determinations”. Corporate tax software  Proposed regulations modify standards for making a good faith determination that a foreign organization is a charitable organization, grants to which may be qualifying distributions and not taxable expenditures. Corporate tax software The proposed regulations identify a broader class of tax practitioners upon whose written advice a private foundation may base a “good faith determination. Corporate tax software ” See, Proposed Regulations: Reliance Standards for Making Good Faith Determinations, REG-134974-12, 2012-47 I. Corporate tax software R. Corporate tax software B. Corporate tax software 553. Corporate tax software Prop. Corporate tax software Regs. Corporate tax software on Good Faith Determinations. Corporate tax software New Requirements for section 501(c)(3) Hospitals Under the Affordable Care Act. Corporate tax software  The Affordable Care Act (ACA), enacted March 23, 2010, added new requirements that hospital organizations must satisfy in order to be described in section 501(c)(3), as well as new reporting requirements and excise taxes. Corporate tax software On June 22, 2012, the Service issued a notice of proposed rulemaking that addresses the new requirements enacted by the ACA applicable to section 501(c)(3) hospital organizations. Corporate tax software See, Proposed Regulations: Additional Requirements for Charitable Hospitals, REG-13026-11, 77 Fed. Corporate tax software Reg. Corporate tax software 38148. Corporate tax software On April 3, 2013, the Service issued proposed regulations on the ACA's community health needs assessment (CHNA) requirements. Corporate tax software The proposed regulations also discuss the related reporting and excise tax requirements for charitable hospitals and the consequences for failure to satisfy the section 501(r) requirements. Corporate tax software See, Proposed Regulations: Community Health Needs Assessments for Charitable Hospitals, REG-106499-12, 78 Fed. Corporate tax software Reg. Corporate tax software 20,523. Corporate tax software Timing of when an Organization is exempt for Federal Tax Purposes. Corporate tax software  As noted in section 2. Corporate tax software 03(4) of Revenue Procedure 2013-9, 2013-2 I. Corporate tax software R. Corporate tax software B. Corporate tax software 267, the provisions in section 11. Corporate tax software 01 regarding the effect of determination letters or rulings recognizing exempt status of organizations described in section 501(c), other than sections 501(c)(3), (9), (17), and (29), have been revised. Corporate tax software Prior to this year, and back to 1962, when such organizations applied for recognition, the IRS would usually recognize the organizations as tax exempt from the date of formation, no matter how long the interval between the date of formation and the date of application. Corporate tax software In addition to the practical difficulties of ascertaining an organization's purposes and activities for this period, such recognition is now potentially inconsistent with the provisions of section 6033(j), which automatically revokes the exempt status of an organization that fails to file required Form 990 series returns or notices for three consecutive years. Corporate tax software The new procedure adopts a practice similar to the rule for section 501(c)(3) organizations for these organizations, generally permitting recognition from the date of formation if the organization has: always met the requirements for exemption, has applied within 27 months from the end of the month in which it was organized, and has not failed to file required Form 990 series returns or notices for three consecutive years. Corporate tax software Section 11. Corporate tax software 01(3) notes: an organization that otherwise meets the requirements for tax-exempt status and the issuance of a determination letter or ruling that does not meet the requirements for recognition from date of formation will generally be recognized from the postmark date of its application. Corporate tax software Exempt Organizations Select Check. Corporate tax software  The IRS has developed an on-line search tool, Exempt Organizations Select Check, that allows users to select an exempt organization and check certain information about its federal tax status and filings. Corporate tax software It consolidates three former search sites into one, providing expanded search capability and a more efficient way to search for organizations that: Are eligible to receive tax-deductible charitable contributions (Publication 78 data). Corporate tax software Users may rely on this list in determining deductibility of contributions, just as they did when Publication 78 was a separate electronic publication rather than part of Select Check. Corporate tax software Have had their tax-exempt status automatically revoked under the law because they have not filed Form 990 series returns or notices annually as required for three consecutive years (Auto-Revocation List). Corporate tax software Have filed a Form 990-N (e-Postcard) annual electronic notice. Corporate tax software  In addition to searching for a particular organization, users may download a complete list of each of the three types of organizations through Exempt Organizations Select Check. Corporate tax software See also Revenue Procedure 2011-33, 2011-25 I. Corporate tax software R. Corporate tax software B. Corporate tax software 887. Corporate tax software Future developments. Corporate tax software . Corporate tax software  The IRS has created a page on IRS. Corporate tax software gov for information about Publication 557, at www. Corporate tax software irs. Corporate tax software gov/pub557. Corporate tax software Information about any future developments affecting Publication 557 (such as legislation enacted after we release it) will be posted on that page. Corporate tax software Reminders The Patient Protection and Affordable Care Act (ACA). Corporate tax software   The ACA added several new laws. Corporate tax software This includes a new excise tax on indoor tanning services, a small business health care tax credit, additional requirements for tax-exempt hospitals, and the section 501(c)(29) CO-OP program. Corporate tax software For more information, go to IRS. Corporate tax software gov and select Affordable Care Act Tax Provisions. Corporate tax software Electronic filing requirement for large organizations. Corporate tax software  For tax years ending on or after December 31, 2006, only organizations that file 250 returns during the calendar year and that have total assets of $10 million or more are required to file Form 990 electronically. Corporate tax software For more information, go to e-file for Charities and Non-Profits. Corporate tax software Section 501(c)(15) gross receipts. Corporate tax software   The definition of gross receipts for purposes of determining whether small insurance companies qualify as tax-exempt under section 501(c)(15) has changed. Corporate tax software See Notice 2006-42, 2006-19 I. Corporate tax software R. Corporate tax software B. Corporate tax software 878, Notice 2006-42. Corporate tax software Prohibited tax shelter transactions. Corporate tax software  New excise taxes are imposed under section 4965 on certain tax-exempt organizations entering into prohibited tax shelter transactions. Corporate tax software See T. Corporate tax software D. Corporate tax software 9492, Excise Taxes on Prohibited Tax Shelter Transactions and Related Disclosure Requirements, 2010-33 I. Corporate tax software R. Corporate tax software B. Corporate tax software 242. Corporate tax software See IRS Issues Final Regulations Regarding Excise Taxes on Prohibited Tax Shelter Transactions and Related Disclosure Requirement. Corporate tax software Pension Protection Act of 2006 tax changes. Corporate tax software  The Pension Protection Act of 2006 made numerous changes to the tax law provisions affecting tax-exempt organizations. Corporate tax software Unless otherwise noted, most of the changes became effective on August 17, 2006. Corporate tax software For key provisions, go to The Pension Protection Act of 2006. Corporate tax software Section 501(c)(3) organizations must make their Form 990-T, Exempt Organization Business Tax Return (and proxy tax under section 6033(e)), open for public inspection for a period of 3 years from the date the Form 990-T is required to be filed (determined with regard to any extension of time for filing) or is actually filed, whichever is later. Corporate tax software There is an increase in excise taxes relating to public charities, social welfare organizations, and private foundations. Corporate tax software There are additional standards for credit counseling organizations. Corporate tax software The definition of convention or association of churches has been modified. Corporate tax software Entities that are not required to file Form 990 or 990-EZ must file new Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ. Corporate tax software The requirements of disclosure to state officials relating to exempt organizations has been modified. Corporate tax software There are excise taxes imposed on excess benefit transactions involving donor advised funds and sponsoring organizations. Corporate tax software There are new excise taxes on prohibited tax shelter transactions. Corporate tax software There is a modification of recordkeeping requirements for certain charitable contributions. Corporate tax software Introduction This publication discusses the rules and procedures for organizations that seek recognition of exemption from federal income tax under section 501(a) of the Internal Revenue Code (the Code). Corporate tax software It explains the procedures you must follow to obtain an appropriate ruling or determination letter recognizing your organization's exemption, as well as certain other information that applies generally to all exempt organizations. Corporate tax software To qualify for exemption under the Code, your organization must be organized for one or more of the purposes specifically designated in the Code. Corporate tax software Organizations that are exempt under section 501(a) include those organizations described in section 501(c). Corporate tax software Section 501(c) organizations are covered in this publication. Corporate tax software Chapter 1, Application, Approval, and Appeal Procedures, provides general information about the procedures for obtaining recognition of tax-exempt status. Corporate tax software Chapter 2, Filing Requirements and Required Disclosures, contains information about annual filing requirements and other matters that may affect your organization's tax-exempt status. Corporate tax software Chapter 3, Section 501(c)(3) Organizations, contains detailed information on various matters affecting section 501(c)(3) organizations, including a section on the determination of private foundation status. Corporate tax software Chapter 4, Other Section 501(c) Organizations, includes separate sections for specific types of organizations described in section 501(c). Corporate tax software Chapter 5, Excise Taxes, provides information on when excise taxes may be imposed. Corporate tax software Organizations not discussed in this publication. Corporate tax software   Certain organizations that may qualify for exemption are not discussed in this publication, although they are included in the Organization Reference Chart. Corporate tax software These organizations (and the Code sections that apply to them) are as follows. Corporate tax software Corporations organized under Acts of Congress 501(c)(1) Teachers' retirement fund associations 501(c)(11) Mutual insurance companies 501(c)(15) Corporations organized to finance crop operations 501(c)(16) Employee funded pension trusts (created before June 25, 1959) 501(c)(18) Withdrawal liability payment fund 501(c)(22) Veterans' organizations (created before 1880) 501(c)(23) National Railroad Retirement Investment Trust 501(c)(28) Religious and apostolic associations 501(d) Cooperative hospital service organizations 501(e) Cooperative service organizations of operating educational organizations 501(f)   Section 501(c)(24) organizations (section 4049 ERISA trusts) are neither discussed in the text nor listed in the Organization Reference Chart. Corporate tax software   Similarly, farmers' cooperative associations that qualify for exemption under section 521, qualified state tuition programs described in section 529, and pension, profit-sharing, and stock bonus plans described in section 401(a) are not discussed in this publication. Corporate tax software If you think your organization falls within one of these categories, contact the IRS for any additional information you need. Corporate tax software For telephone assistance, call 1-877-829-5500. Corporate tax software   Check the Table of Contents at the beginning of this publication to determine whether your organization is described in this publication. Corporate tax software If it is, read the chapter (or section) that applies to your type of organization for the specific information you must give when applying for recognition of exemption. Corporate tax software Organization Reference Chart. Corporate tax software   The Organization Reference Chart enables you to locate at a glance the section of the Code under which your organization might qualify for exemption. Corporate tax software It also shows the required application form and, if your organization meets the exemption requirements, the annual return to be filed (if any), and whether or not a contribution to your organization will be deductible by a donor. Corporate tax software It also describes each type of qualifying organization and the general nature of its activities. Corporate tax software   You may use the Organization Reference Chart to determine the Code section that you think applies to your organization. Corporate tax software Any correspondence with the IRS (in requesting forms or otherwise) will be expedited if you indicate in your correspondence the appropriate Code section. Corporate tax software Check the IRS website, IRS. Corporate tax software gov, for the latest updates, Tax Information for Charities & Other Non-Profits, www. Corporate tax software irs. Corporate tax software gov/charities/index. Corporate tax software html. Corporate tax software Comments and suggestions. Corporate tax software   We welcome your comments about this publication and your suggestions for future editions. Corporate tax software   You can e-mail us while visiting our website at IRS. Corporate tax software gov. Corporate tax software   You can send your comments to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Corporate tax software NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Corporate tax software Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Corporate tax software   If you wish telephone assistance, please call 1-877-829-5500. Corporate tax software This toll-free telephone service is available Monday through Friday. Corporate tax software Prev  Up  Next   Home   More Online Publications