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Download free tax software Index A Affected taxpayer, Affected taxpayer. Download free tax software B Book inventories, charitable deduction for, Charitable Deduction for Contributions of Book Inventories to Public Schools C Cancellation of indebtedness, Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Casualty and theft losses, Casualty and Theft Losses Charitable contributions, Temporary Suspension of Limits on Charitable Contributions Charitable deduction: Book inventory, Charitable Deduction for Contributions of Book Inventories to Public Schools Food inventory, Charitable Deduction for Contributions of Food Inventory Child tax credit, Earned Income Credit and Child Tax Credit Clean-up costs, Demolition and Clean-up Costs Copy of tax return, request for, Request for copy of tax return. Download free tax software Core disaster area, Gulf Opportunity (GO) Zone (Core Disaster Area) Covered disaster area: Katrina, Katrina Covered Disaster Area Rita, Hurricane Rita Disaster Area (Rita Covered Disaster Area) Wilma, Wilma Covered Disaster Area Credits: Child tax, Earned Income Credit and Child Tax Credit Earned income, Earned Income Credit and Child Tax Credit Education, Education Credits Employee retention, Employee Retention Credit Hurricane Katrina housing, Hurricane Katrina Housing Credit Rehabilitation tax, Increase in Rehabilitation Tax Credit Work opportunity, Work Opportunity Credit D Deadlines, extended, Extended Tax Deadlines Demolition costs, Demolition and Clean-up Costs Depreciation: Qualified GO Zone property, Qualified GO Zone property. Download free tax software Special allowance, Special Depreciation Allowance Disaster area: Hurricane Katrina, Hurricane Katrina Disaster Area Hurricane Rita, Hurricane Rita Disaster Area (Rita Covered Disaster Area) Hurricane Wilma, Hurricane Wilma Disaster Area Distributions: Home purchase or construction, Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Qualified hurricane, Qualified hurricane distribution. Download free tax software Repayment of, Repayment of Qualified Hurricane Distributions Taxation of, Taxation of Qualified Hurricane Distributions E Earned income credit, Earned Income Credit and Child Tax Credit Education credits, Education Credits Eligible retirement plan, Eligible retirement plan. Download free tax software Employee retention credit, Employee Retention Credit Exemption, additional for housing, Additional Exemption for Housing Individuals Displaced by Hurricane Katrina F Federal mortgage subsidy, recapture of, Recapture of Federal Mortgage Subsidy Food inventory, charitable deduction for, Charitable Deduction for Contributions of Food Inventory G Gulf Opportunity (GO) Zone, Gulf Opportunity (GO) Zone (Core Disaster Area) H Help: How to get, How To Get Tax Help Phone number, How To Get Tax Help Special IRS assistance, How To Get Tax Help Website, How To Get Tax Help Hope credit (see Education credits) Hurricane Katrina disaster area, Hurricane Katrina Disaster Area Hurricane Katrina housing credit, Hurricane Katrina Housing Credit Hurricane Rita disaster area, Hurricane Rita Disaster Area (Rita Covered Disaster Area) Hurricane Wilma disaster area, Hurricane Wilma Disaster Area I Involuntary conversion (see Replacement period for nonrecognition of gain) IRAs and other retirement plans, IRAs and Other Retirement Plans L Lifetime learning credit (see Education credits) M Mileage reimbursements, charitable volunteers, Mileage Reimbursements to Charitable Volunteers N Net operating losses, Net Operating Losses Q Qualified GO Zone loss, Qualified GO Zone loss. Download free tax software Qualified hurricane distribution, Qualified hurricane distribution. Download free tax software R Reforestation costs, Reforestation Costs Rehabilitation tax credit, Increase in Rehabilitation Tax Credit Relocation, temporary, Tax Relief for Temporary Relocation Replacement period for nonrecognition of gain, Replacement Period for Nonrecognition of Gain Retirement plan, eligible, Eligible retirement plan. Download free tax software Retirement plans, IRAs and Other Retirement Plans Rita GO Zone, Rita GO Zone S Section 179 deduction, Increased Section 179 Deduction Standard mileage rate, charitable use, Standard Mileage Rate for Charitable Use of Vehicles T Tax return: Request for copy, Request for copy of tax return. Download free tax software Request for transcript, Request for transcript of tax return. Download free tax software Taxpayer Advocate, Contacting your Taxpayer Advocate. Download free tax software Temporary relocation, Tax Relief for Temporary Relocation Theft losses, Casualty and Theft Losses Timber: 5-year NOL carryback, 5-year NOL carryback of certain timber losses. Download free tax software Reforestation costs, Reforestation Costs Transcript of tax return, request for, Request for transcript of tax return. Download free tax software W Wilma GO Zone, Wilma GO Zone Work opportunity credit, Work Opportunity Credit Prev  Up     Home   More Online Publications
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Understanding your CP259B Notice

Your organization didn’t file a Form 990-PF.


What you need to do

  • File a Form 990-PF
  • Complete the response page
  • Mail it to the address on the notice

    Answers to Common Questions

    What should I do if I have all ready filed Form 990-PF?
    If you filed within the last four weeks using the same name and Employer ID number (EIN) on your notice, you don’t have to do anything. Our system may not have processed your return at the time we mailed the notice.
    If you filed more than four weeks ago or used a different name or EIN, complete the Response form starting on Page 3, and mail it to us with a signed and dated copy of the return.

    What should I do if I don’t think I have to file a Form 990-PF?
    Complete the response form starting on Page 3 of the notice and mail it to us.


    Understanding your notice

    Reading your notice
    Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

    Notice CP259B, Page 1

    Notice CP259B, Page 2

    Notice CP259B, Page 3

    Notice CP259B, Page 4

Page Last Reviewed or Updated: 15-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Download Free Tax Software

Download free tax software 2. Download free tax software   Filing Requirements and Required Disclosures Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Annual Information ReturnsSupporting Organization Annual Information Return Unrelated Business Income Tax ReturnEstimated tax. Download free tax software Employment Tax ReturnsException. Download free tax software FUTA tax exception. Download free tax software FICA tax exemption election. Download free tax software Revoking the election. Download free tax software Definitions. Download free tax software Effect on employees. Download free tax software Political Organization Income Tax ReturnExempt function. Download free tax software Political organization taxable income. Download free tax software Separate fund. Download free tax software Failure to file. Download free tax software Failure to pay on time. Download free tax software Reporting Requirements for a Political OrganizationForm 8871 Form 8872 Donee Information ReturnCharitable deduction property. Download free tax software Publicly traded securities. Download free tax software Exceptions. Download free tax software Form 8283. Download free tax software Information Provided to DonorsDisclosure of Quid Pro Quo Contributions Acknowledgment of Charitable Contributions of $250 or More Acknowledgment of Vehicle Contribution Qualified Intellectual Property Report of Cash Received Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting FormsAnnual Information Return Public Inspection of Exemption Application Political Organization Reporting Forms Required DisclosuresSolicitation of Nondeductible Contributions Sales of Information or Services Available Free From Government Dues Used for Lobbying or Political Activities Prohibited Tax Shelter Transactions Miscellaneous RulesOrganizational Changes and Exempt Status Introduction Most exempt organizations (including private foundations) must file various returns and reports at some time during (or following the close of) their accounting period. Download free tax software Topics - This chapter discusses: Annual information returns Unrelated business income tax return Employment tax returns Political organization income tax return Reporting requirements for a political organization Donee information return Information provided to donors Report of cash received Public inspection of exemption applications, annual returns, and political organizations reporting forms Required disclosures Miscellaneous rules Useful Items - You may want to see: Publication 15 Circular E, Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 598 Tax on Unrelated Business Income of Exempt Organizations Form (and Instructions) 941 Employer's Quarterly Federal Tax Return 990 Return of Organization Exempt From Income Tax 990-EZ Short Form Return of Organization Exempt From Income Tax Schedule A (Form 990 or 990-EZ) Public Charity Status and Public Support Schedule B (Form 990, 990-EZ, or 990-PF) Schedule of Contributors Schedule C (Form 990 or 990-EZ) Political Campaign and Lobbying Activities Schedule D (Form 990) Supplemental Financial Statements Schedule E (Form 990 or 990-EZ) Schools Schedule F (Form 990) Statement of Activities Outside the United States Schedule G (Form 990 or 990-EZ) Supplemental Information Regarding Fundraising or Gaming Activities Schedule H (Form 990) Hospitals Schedule I (Form 990) Grants and Other Assistance to Organizations, Governments, and Individuals in the United States Schedule J (Form 990) Compensation Information Schedule K (Form 990) Supplemental Information on Tax-Exempt Bonds Schedule L (Form 990 or 990-EZ) Transactions With Interested Persons Schedule M (Form 990) Noncash Contributions Schedule N (Form 990 or 990-EZ) Liquidation, Termination, Dissolution, or Significant Disposition of Assets Schedule O (Form 990 or 990-EZ) Supplemental Information to Form 990 Schedule R (Form 990) Related Organizations and Unrelated Partnerships 990-PF Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation 990-BL Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons 990-T Exempt Organization Business Income Tax Return 990-W Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations 1120-POL U. Download free tax software S. Download free tax software Income Tax Return for Certain Political Organizations 4720 Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code 5768 Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation 6069 Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction 7004 Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns 8274 Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes 8282 Donee Information Return 8300 Report of Cash Payments Over $10,000 Received in a Trade or Business 8453-X Political Organization Declaration for Electronic Filing of Notice of Section 527 Status 8822-B Change of Address-Business 8868 Application for Extension of Time to File an Exempt Organization Return 8870 Information Return for Transfers Associated with Certain Personal Benefits Contracts 8871 Political Organization Notice of Section 527 Status 8872 Political Organization Report of Contributions and Expenditures 8886-T Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction 8899 Notice of Income from Donated Intellectual Property 8940 Request for Miscellaneous Determination See chapter 6 for information about getting these publications and forms. Download free tax software Annual Information Returns Every organization exempt from federal income tax under section 501(a) must file an Annual Exempt Organization Return except: A church, an interchurch organization of local units of a church, a convention or association of churches, An integrated auxiliary of a church, A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs, A school below college level affiliated with a church or operated by a religious order, Church-affiliated mission societies if more than half of their activities are conducted in, or are directed at persons in, foreign countries, An exclusively religious activity of any religious order, A state institution, the income of which is excluded from gross income under section 115, A corporation described in section 501(c)(1) that is organized under an Act of Congress, an instrumentality of the United States, and is exempt from Federal income taxes, A stock bonus, pension, or profit-sharing trust that qualifies under section 401 (required to file Form 5500, Annual Return/Report of Employee Benefit Plan), A religious or apostolic organization described in section 501(d) (required to file Form 1065, U. Download free tax software S. Download free tax software Return of Partnership Income), A governmental unit or an affiliate of a governmental unit that meets the requirements of Revenue Procedure 95-48, 1995-2 C. Download free tax software B. Download free tax software 418, www. Download free tax software irs. Download free tax software gov/pub/irs-tege/rp1995-48. Download free tax software pdf, A private foundation described in section 501(c)(3) and exempt under section 501(a) (required to file Form 990-PF, Return of Private Foundation), A political organization that is a state or local committee of a political party, a political committee of a state or local candidate, a caucus or association of state or local officials, or required to report under the Federal Election Campaign Act of 1971 as a political committee, An exempt organization (other than a private foundation) that normally has annual gross receipts of $50,000 or less, or A foreign organization, or an organization located in a U. Download free tax software S. Download free tax software possession, that normally has annual gross receipts from sources within the United States of $50,000 or less. Download free tax software Supporting Organization Annual Information Return For tax years ending after August 17, 2006, all section 509(a)(3) supporting organizations are required to file Form 990 or 990-EZ with the IRS regardless of the organization's gross receipts, unless it qualifies as one of the following: An integrated auxiliary of a church; The exclusively religious activities of a religious order; or An organization, the gross receipts of which are normally not more than $5,000, that supports a section 509(a)(3) religious order. Download free tax software If the organization is described in item (3) above, then it must submit Form 990-N (e-Postcard) unless it voluntarily files Form 990 or 990-EZ. Download free tax software On its annual information return, at Part I, Schedule A (Form 990 or 990-EZ) a supporting organization must: List the section 509(a)(3) organizations to which it provides support, Indicate whether it is a Type I, Type II, or Type III supporting organization, and Certify that the organization is not controlled directly or indirectly by disqualified persons (other than by foundation managers and other than one or more publicly supported organizations). Download free tax software Annual Electronic Filing Requirement for Small Tax-Exempt Organizations Small tax-exempt organizations with annual gross receipts normally $50,000 or less must submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, with the IRS each year, if they choose not to file a Form 990 or 990-EZ. Download free tax software Form 990-N requires the following information: The organization's legal name, and mailing address; Any name under which it operates and does business; Its Internet website address (if any); Its taxpayer identification number; The name and address of a principal officer; Organization's annual tax period; Verification that the organization's annual gross receipts are normally $50,000 or less; and Notification if the organization has terminated. Download free tax software Form 990-N is due by the 15th day of the fifth month after the close of the tax year. Download free tax software For tax years beginning after December 31, 2006, any organization that fails to meet its annual reporting requirement for 3 consecutive years will automatically lose its tax-exempt status. Download free tax software To regain its exempt status an organization will have to reapply for recognition as a tax-exempt organization. Download free tax software Exceptions. Download free tax software   This filing requirement does not apply to: Churches, their integrated auxiliaries, and conventions or associations of churches; Organizations that are included in a group return; Private foundations required to file Form 990-PF; and Section 509(a)(3) supporting organizations required to file Form 990 or Form 990-EZ. Download free tax software Forms 990 and 990-EZ Exempt organizations, other than private foundations, must file their annual information returns on Form 990 or 990-EZ, unless excepted from filing or allowed to submit Form 990-N, described earlier. Download free tax software Generally, political organizations with gross receipts of $25,000 ($100,000 for a qualified state or local political organization (QSLPO)) or more for the tax year are required to file Form 990 or 990-EZ unless specifically excepted from filing the annual return. Download free tax software The following political organizations are not required to file Form 990 or Form 990-EZ. Download free tax software A state or local committee of a political party. Download free tax software A political committee of a state or local candidate. Download free tax software A caucus or association of state or local officials. Download free tax software A political organization that is required to report as a political committee under the Federal Election Campaign Act. Download free tax software A 501(c) organization that has expenditures for influencing or attempting to influence the selection, nomination, election, or appointment of any individual for a federal, state, or local public office. Download free tax software Form 990-EZ. Download free tax software   This is a shortened version of Form 990. Download free tax software It is designed for use by small exempt organizations and nonexempt charitable trusts. Download free tax software   Beginning in tax year 2010, an organization can file either Form 990 or 990-EZ if it meets the following: Its gross receipts during the year are less than $200,000. Download free tax software Its total assets (line 25, column (B) of Form 990-EZ) at the end of the year are less than $500,000. Download free tax software If your organization does not meet either of these conditions, you cannot file Form 990-EZ. Download free tax software Instead you must file Form 990. Download free tax software Group return. Download free tax software   A group return on Form 990 may be filed by a central, parent, or like organization for two or more local organizations, none of which is a private foundation. Download free tax software This return is in addition to the central organization's separate annual return if it must file a return. Download free tax software It cannot be included in the group return. Download free tax software See the instructions for Form 990 for the conditions under which this procedure may be used. Download free tax software    In any year that an organization is properly included as a subordinate organization on a group return, it should not file its own Form 990. Download free tax software Schedule A (Form 990 or 990-EZ). Download free tax software   Organizations, other than private foundations, that are described in section 501(c)(3) and that are otherwise required to file Form 990 or 990-EZ must also complete Schedule A of that form. Download free tax software Schedule B (Form 990, Form 990-EZ, or 990-PF). Download free tax software   Organizations that file Form 990 or 990-EZ use this schedule to provide required information regarding their contributors. Download free tax software Schedule O (Form 990). Download free tax software   Organizations that file Form 990 must use this schedule to provide required additional information or if additional space is needed. Download free tax software   Other schedules may be required to be filed with Form 990 or 990-EZ. Download free tax software See the instructions for Form 990 or the instructions for Form 990-EZ for more information. Download free tax software Report significant new or changed program services and changes to organizational documents. Download free tax software    An organization should report new significant program services or significant changes in how it conducts program services, and significant changes to its organizational documents, on its Form 990 rather than in a letter to EO Determinations. Download free tax software EO Determinations no longer issues letters confirming the tax-exempt status of organizations that report new services or significant changes, or changes to organizational documents. Download free tax software See Miscellaneous Rules, Organization Changes and Exempt Status, later. Download free tax software Form 990-PF All private foundations exempt under section 501(c)(3) must file Form 990-PF. Download free tax software These organizations are discussed in chapter 3. Download free tax software Electronic Filing You may be required to file Form 990, Form 990-EZ, or Form 990-PF, and related forms, schedules, and attachments electronically. Download free tax software If an organization is required to file a return electronically but does not, the organization is considered to have not filed its return. Download free tax software See Regulations section 301. Download free tax software 6033-4 for more information. Download free tax software The IRS may waive the requirement to file electronically in cases of undue hardship. Download free tax software For information on filing a waiver, see Notice 2010-13, 2010-4 I. Download free tax software R. Download free tax software B. Download free tax software 327, available at www. Download free tax software irs. Download free tax software gov/ir/2010-04_IRSB/ar14. Download free tax software html. Download free tax software Form 990. Download free tax software   An organization is required to file Form 990 electronically if it files at least 250 returns during the calendar year and has total assets of $10 million or more at the end of the tax year. Download free tax software Form 990-PF. Download free tax software   An organization is required to file Form 990-PF electronically if it files at least 250 returns during the calendar year. Download free tax software Due Date Forms 990, 990-EZ, or 990-PF must be filed by the 15th day of the fifth month after the end of your organization's accounting period. Download free tax software Thus, for a calendar year taxpayer, Forms 990, 990-EZ, or 990-PF is due May 15 of the following year. Download free tax software Extension of time to file. Download free tax software   Use Form 8868 to request an automatic 3-month extension of time to file Forms 990, 990-EZ, or 990-PF and also to apply for an additional (not automatic) 3-month extension if needed. Download free tax software   Do not apply for both the automatic 3-month extension and the additional 3-month extension at the same time. Download free tax software For more information, see Form 8868 and its instructions. Download free tax software   When filing Form 8868 for an automatic 3-month extension, neither a signature, nor an explanation is required. Download free tax software However, when filing Form 8868 for an additional 3-month extension, both a signature and an explanation are required. Download free tax software Application for exemption pending. Download free tax software   An organization that claims to be exempt under section 501(a) but has not established its exempt status by the due date for filing an information return must complete and file Form 990, 990-EZ, 990–N or 990-PF (if it considers itself a private foundation), unless the organization is exempt from Form 990-series filing requirements. Download free tax software If the organization's application is pending with the IRS, it must so indicate on Forms 990, 990-EZ, or 990-PF (whichever applies) by checking the application pending block at the top of page 1 of the return. Download free tax software For more information on the filing requirements, see the Instructions for Forms 990, 990-EZ, and 990-PF. Download free tax software State reporting requirements. Download free tax software   Copies of Forms 990, 990-EZ, or 990-PF may be used to satisfy state reporting requirements. Download free tax software See the instructions for those forms. Download free tax software Form 8870. Download free tax software   Organizations that filed a Form 990, 990-EZ, or 990-PF, and paid premiums or received transfers on certain life insurance, annuity, and endowment contracts (personal benefit contracts), must file Form 8870. Download free tax software For more information, see Form 8870 and the instructions for that form. Download free tax software Automatic Revocation If the organization fails to file a Form 990, 990-EZ, or 990-PF, or fails to submit a Form 990-N, as required, for 3 consecutive years, it will automatically lose its tax-exempt status by operation of law. Download free tax software The list of organizations whose tax-exempt status has been automatically revoked is available on IRS. Download free tax software gov. Download free tax software This list (Auto-Revocation List) may be viewed and searched on Exempt Organizations Select Check. Download free tax software The Auto-Revocation List includes each organization's name, Employer Identification Number (EIN) and last known address. Download free tax software It also includes the effective date of the automatic revocation and the date it was posted to the list. Download free tax software The IRS updates the list monthly to include additional organizations that lose their tax-exempt status. Download free tax software Tax Effect of Loss of Tax-Exempt Status If your organization’s tax-exempt status is automatically revoked, you may be required to file one of the following federal income tax returns and pay any applicable income taxes: Form 1120, U. Download free tax software S. Download free tax software Corporation Income Tax Return, due by the 15th day of the 3rd month after the end of your organization’s tax year, or Form 1041, U. Download free tax software S. Download free tax software Income Tax Return for Estates and Trusts, due by the 15th day of the 4th month after the end of your organization’s tax year. Download free tax software In addition, a section 501(c)(3) organization that loses its tax-exempt status cannot receive tax-deductible contributions and will not be identified in the IRS Business Master File extract as eligible to received tax-deductible contributions, or be included in Exempt Organizations Select Check (Pub 78 database). Download free tax software An organization whose exemption was automatically revoked must apply for tax exemption in order to regain its tax exemption (even if it was not originally required to apply). Download free tax software In some situations, an organization may be able to obtain exemption retroactive to its date of revocation. Download free tax software For more information about automatic revocation, go to IRS. Download free tax software gov and select Charities & Non-Profits and then select Revoked? Reinstated? Learn More. Download free tax software Penalties Penalties for failure to file. Download free tax software   Generally, an exempt organization that fails to file a required return must pay a penalty of $20 a day for each day the failure continues. Download free tax software The same penalty will apply if the organization does not give all the information required on the return or does not give the correct information. Download free tax software Maximum penalty. Download free tax software   The maximum penalty for any one return is the smaller of $10,000 or 5% of the organization's gross receipts for the year. Download free tax software Organization with gross receipts over $1 million. Download free tax software   For an organization that has gross receipts of over $1 million for the year, the penalty is $100 a day up to a maximum of $50,000. Download free tax software Managers. Download free tax software   If the organization is subject to this penalty, the IRS may specify a date by which the return or correct information must be supplied by the organization. Download free tax software Failure to comply with this demand will result in a penalty imposed upon the manager of the organization, or upon any other person responsible for filing a correct return. Download free tax software The penalty is $10 a day for each day that a return is not filed after the period given for filing. Download free tax software The maximum penalty imposed on all persons with respect to any one return is $5,000. Download free tax software Exception for reasonable cause. Download free tax software   No penalty will be imposed if reasonable cause for failure to file timely can be shown. Download free tax software Unrelated Business Income Tax Return Even though your organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. Download free tax software Unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. Download free tax software If your organization has $1,000 or more of unrelated business income, you must file Form 990-T in addition to your required annual information return. Download free tax software Estimated tax. Download free tax software   Quarterly estimated tax payments are due if your organization expects to owe $500 or more in tax including unrelated business income. Download free tax software Use Form 990-W to figure your organization's estimated tax payments. Download free tax software Travel tour programs. Download free tax software   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose to which tax exemption was granted to the organization. Download free tax software   Whether travel tour activities conducted by an organization are substantially related to the organization's tax exempt purpose is determined by looking at all the relevant facts and circumstances, including, but not limited to, how a travel tour is developed, promoted, and operated. Download free tax software Example. Download free tax software ABC, a university alumni association, is tax exempt as an educational organization under section 501(c)(3). Download free tax software As part of its activities, ABC operates a travel tour program. Download free tax software The program is open to all current members of ABC and their guests. 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Download free tax software Therefore, ABC's tour program is an unrelated trade or business. Download free tax software For additional information on unrelated business income, see Publication 598 and the Instructions for Form 990-T. Download free tax software Employment Tax Returns Every employer, including an organization exempt from federal income tax, who pays wages to employees is responsible for withholding, depositing, paying, and reporting federal income tax, social security and Medicare (FICA) taxes, and federal unemployment tax (FUTA), unless that employer is specifically excepted by law from those requirements, or if the taxes clearly do not apply. Download free tax software For more information, obtain a copy of Publication 15, which summarizes the responsibilities of an employer, Publication 15-A, Publication 15-B, and Form 941. Download free tax software Small Business Health Care Tax Credit. Download free tax software   If your small tax-exempt organization provides health care coverage for your workers you may qualify for the small business health care tax credit. Download free tax software Go to IRS. Download free tax software gov and select Affordable Care Act Tax Provisions for more details. Download free tax software See Small Business Health Care Tax Credit at www. Download free tax software irs. Download free tax software gov/newsroom/article/0,,id=223666,00. Download free tax software html. Download free tax software Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans. Download free tax software   The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC). Download free tax software The Act added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer's share of social security tax. 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Download free tax software   All employers must obtain certification that an individual is a member of the targeted group, before the employer may claim the credit. Download free tax software The process for certifying veterans for this credit is the same for all employers. Download free tax software For more information, see Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit and the instructions to Form 8850. Download free tax software Notice 2012-13, 2012-9 I. Download free tax software R. Download free tax software B. Download free tax software 421, also provides additional guidance on submission Form 8850. Download free tax software   Organizations described in section 501(c) and exempt from taxation under section 501(a) may claim the credit for qualified veterans who begin work on or after Nov. Download free tax software 22, 2011, and before January 1, 2013. 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Download free tax software In the case of a lump-sum contribution (rather than a contribution by payroll deduction) made through the Combined Federal Campaign or a similar program such as a United Way Campaign, the written communication must include the name of the donee organization that is the ultimate recipient of the charitable contribution. Download free tax software Contributions by payroll deduction. Download free tax software   An organization may substantiate an employee's contribution by deduction from its payroll by: A pay stub, Form W-2, or other document showing a contribution to a donee organization, together with A pledge card or other document from the donee organization that shows its name. Download free tax software   For contributions of $250 or more, the document must state that the donee organization provides no goods or services for any payroll contributions. 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Download free tax software Any donee organization that provides a contemporaneous written acknowledgment to a donor is required to report to the IRS the information contained in the acknowledgment. Download free tax software The report is due by February 28 (March 31 if filing electronically) of the year following the year in which the donee organization provides the acknowledgment to the donor. Download free tax software The organization must file the report on Copy A of Form 1098-C. Download free tax software An organization that files Form 1098-C on paper should send it with Form 1096, Annual Summary and Transmittal of U. Download free tax software S. Download free tax software Information Returns. Download free tax software See the Instructions for Form 1096 for the correct filing location. Download free tax software An organization that is required to file 250 or more Forms 1098-C during the calendar year must file the forms electronically or magnetically. Download free tax software Specifications for filing Form 1098-C electronically or magnetically can be found in Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically at www. Download free tax software IRS. Download free tax software gov/pub/irs-pdf/p1220. Download free tax software pdf. Download free tax software Acknowledgment For a contribution of a qualified vehicle with a claimed value of $500 or less, do not file Form 1098-C. Download free tax software However, you can use it as the contemporaneous written acknowledgment under section 170(f)(8) by providing the donor with Copy C only. Download free tax software See the Instructions for Form 1098-C. Download free tax software Generally, the organization should complete Form 1098-C as the written acknowledgment to the donor and the IRS. Download free tax software The contents of the acknowledgment depend upon whether the organization: Sells a qualified vehicle without any significant intervening use or material improvement, Intends to make a significant intervening use of or material improvement to a qualified vehicle prior to sale, or Sells a qualified vehicle to a needy individual at a price significantly below fair market value, or a gratuitous transfer to a needy individual in direct furtherance of a charitable purpose of the organization of relieving the poor and distressed or the underprivileged who are in need of a means of transportation. Download free tax software For more information on the acknowledgment, see Notice 2005-44, 2005-25 I. Download free tax software R. Download free tax software B. Download free tax software 1287, at www. Download free tax software irs. Download free tax software gov/irb/2005-25_IRB/2005-25_IRB/ar09. Download free tax software html. 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Download free tax software Examples of significant use include: Driving a vehicle every day for 1 year to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. Download free tax software Driving a vehicle for 10,000 miles over a 1-year period to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. Download free tax software   Material improvements include major repairs and additions that improve the condition of the vehicle in a manner that significantly increases the value. Download free tax software To be a material improvement, the improvement cannot be funded by an additional payment to the organization from the donor of the vehicle. Download free tax software Material improvements do not include cleaning, minor repairs, routine maintenance, painting, removal of dents or scratches, cleaning or repair of upholstery, and installation of theft deterrent devices. 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Download free tax software   If a charity sells a donated vehicle at auction, the IRS will not accept as substantiation an acknowledgment from the charity stating that the vehicle is to be transferred to a needy individual for significantly below fair market value. Download free tax software Vehicles sold at auction are not sold at prices significantly below fair market value, and the IRS will not treat vehicles sold at auction as qualifying for this exception. Download free tax software   The penalty for a false or fraudulent acknowledgment where the donee certifies that the vehicle will not be transferred for money, other property, or services before completion of material improvements or significant intervening use or the donee certifies that the vehicle is to be transferred to a needy individual for significantly below fair market value in furtherance of the donee's charitable purpose is the larger of $5,000 or the claimed value of the vehicle multiplied by 39. Download free tax software 6%. Download free tax software   The penalty for an acknowledgment relating to a qualified vehicle being sold in an arm's length transaction to an unrelated party is the larger of the gross proceeds from the sale or the sales price stated in the acknowledgment multiplied by 39. Download free tax software 6%. Download free tax software Qualified Intellectual Property A taxpayer who contributes qualified intellectual property to a charity may be entitled to a charitable deduction, in addition to any initial deduction allowed in the year of contribution. Download free tax software The additional deduction is based on a specified percentage of the qualified donee income with respect to the qualified intellectual property. 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