Exempt Organization Public Disclosure and Availability Requirements

If anyone wishes to see the tax records of a local tax-exempt this IRS source is a good starting point.

NOTE:  Each of these questions is interactive; Click on the question and your browser will automatically go to IRS’ answer.

Tax-exempt organizations must make annual returns and exemption applications filed with the IRS available for public inspection and copying upon request. In addition, the IRS makes these documents available. The questions below relate to the public disclosure and availability of documents filed by tax-exempt organizations with the IRS.

A. Questions about Requirements for Exempt Organizations to Disclose IRS Filings to the General Public

1. In general, what public disclosure requirements apply to tax-exempt organizations?
2. What organizations are tax-exempt organizations for purposes of the law requiring that certain tax documents be disclosed and copies of those documents be provided to persons requesting them?
3. What tax documents must an exempt organization make available for public inspection and copying?
4. What does the disclosure law require a tax-exempt organization to do?
5. What does the IRS consider to be a reasonable charge for copying costs, which an exempt organization may charge for copies of tax documents covered by public disclosure requirements?
6. What are our organization’s public disclosure obligations for the Form 990?
7. Are organizations that are not required to provide copies of their exemption applications also exempt from the requirement to provide copies of annual returns to requesters?
8. What disclosure laws apply to private foundations?
9. Is a tax-exempt organization required to disclose the names or addresses of its contributors?
10. Is there an exception to the requirement that an exempt organization provide copies of its exemption application and annual returns?
11. If an organization makes it documents widely available must it make the documents available for public inspection?
12. What are the penalties for failure to comply with the disclosure requirements, and who must pay them?
13. If a request for copies of exempt organizations documents is not fulfilled, to whom may the requester complain?
14. What disclosures is a charitable organization required to make to its donors?
15. What disclosures must an exempt organization, other than a charity, make to its donors?
16. Is personal identifying information provided on an exempt organization return subject to public disclosure?
17. How can I obtain a copy of an organization's annual return or exemption application?
18. What should I do if an exempt organization will not let me see its Form 990 or 990-T returns or exemption application materials?
19. How will the public get access to information on the e-Postcard?

B. Questions about Requirements that the IRS Make Exempt Organizations Filings Available for Public Inspection and Copying

1. How can one get a copy of an organization's exemption application or annual information return from the IRS?
2. Is personal identifying information provided on an exempt organization return subject to public disclosure?
3. How will the public get access to information on the e-Postcard?

View and print all FAQs (Adobe).

Page Last Reviewed or Updated: 18-Jun-2014

Above is from:  Exempt Organization Public Disclosure and Availability Requirements

Proposed tax credit changes could propel projects in downtown Rockford - News - Rockford Register Star - Rockford, IL

 

Developers apply for state or federal tax credits, which are dollar-for-dollar reductions in the amount of income taxes owed. Developers can use them to offset their own income, or sell them at a discount to investors.

Here’s an example of how River Edge credits work now and how projects could be affected by the proposed changes.

Gorman & Co., a Wisconsin developer, wants to do an estimated $50 million rehabilitation of the Amerock/Ziock building downtown. The 25 percent River Edge tax credit would provide Gorman with $12.5 million in tax credits to use or sell to an investor to help finance the project. Gorman also is eligible for a 20 percent federal historic tax credit, worth $10 million.

Click on the following for more details:   Proposed tax credit changes could propel projects in downtown Rockford - News - Rockford Register Star - Rockford, IL

A Bombshell in the IRS Scandal - WSJ.com

 

chief counsel of the IRS is one of only two Obama political appointees in the entire agency….

House investigators soon talked to workers in the Cincinnati office, who said everything they did came from Washington. Elizabeth Hofacre, in charge of processing tea-party applications in Cincinnati, told investigators that her work was overseen and directed by a lawyer in the IRS Washington office named Carter Hull.

Now comes Mr. Hull's testimony. And like Ms. Hofacre, he pointed his finger upward. Mr. Hull—a 48-year IRS veteran and an expert on tax exemption law—told investigators that tea-party applications under his review were sent upstairs within the Washington office, at the direction of Lois Lerner. …

What the IRS originally claimed was a rogue operation now reaches up not only to the Washington office, but into the office of the IRS chief counsel himself…

 

Read the entire piece by clicking on the following:  http://online.wsj.com/article/SB10001424127887324448104578614220949743916.html?mod=djemEditorialPage_h

These 2 Tax Charts Tell You Exactly Who Won the Fiscal-Cliff Deal - Matthew O'Brien - The Atlantic

 

There are three big tax stories here, all adding up to modest tax increases for the bottom 99 percent, and much bigger tax increases for the top 1 percent.

(1) Five-year extension of the stimulus tax credits. The 2009 stimulus expanded the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit, and the 2012 fiscal cliff deal extended all of them for an additional five years. ….a big deal to households earning $20,000 and less. It's a safety net done the way conservatives like it, since households have to work to get these credits.

(2) Expiration of the payroll tax cut holiday. The worker's half of the payroll tax had been cut two full percentage points, from 6.2 to 4.2 percent, the past two years. Now that's over. …

(3) Return of Clinton-era rates (or more) for income over $400,000/$450,000. …..The deal also brought back limits on deductions and exemptions for high-earners, known as Pease and PEP, …..capital gains and dividends -- rates rise from 15 to 23.8 percent, with the last 3.8 percent due to the Obamacare surtax, for individual/joint filers making $400,000/$450,000. Remember, the top 0.1 percent of households account for half of all capital gains, so this is no small thing

Click on the following to read all of the story:  These 2 Tax Charts Tell You Exactly Who Won the Fiscal-Cliff Deal - Matthew O'Brien - The Atlantic

IRS May Make Political Groups Pay Dearly for Keeping Donors Secret -- And Out Them

 

But in a sign that the agency may be waking from its slumber, the IRS has sent detailed questionnaires to several Tea Party organizations -- and possibly other political groups -- to determine if they truly qualify for the 501(c)(4) designation intended for groups whose exclusive purpose is to promote social welfare.
Should any group currently calling itself a 501(c)(4) have its designation denied or revoked, tax experts said the consequences could be severe, including fines of 35 percent or more of the money they raised in secret.

And the groups might have to make donors' names public.

Click on the following for more details:  IRS May Make Political Groups Pay Dearly for Keeping Donors Secret -- And Out Them

Non-profit hospitals baffled over losing tax-exempt status

The Illinois Department of Revenue denied long-pending requests from three prominent institutions: Prentice Women's at Northwestern Memorial Hospital in Chicago, Edward Hospital in Naperville and Decatur Memorial Hospital in that Downstate city, according to one-page rulings from the department.
Read more: http://www.chicagobusiness.com/article/20110817/NEWS03/110819886/non-profit-hospitals-baffled-over-losing-tax-exempt-status#ixzz1VKp6gwY8
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Time is Running Out to Save Your Tax Exemption Organization

This article is from the California State Grange but it applies to all granges and other non-profits.

Time is Running Out to Save Your Tax Exemption

by Inger Bevans, Executive Committee
The IRS will be revoking the tax exemption of thousands of non-profit organizations on October 16, 2010. The Pension Protection Act of 2006 requires the IRS to revoke the exemptions of those nonprofits that have not filed for three consecutive years, beginning with tax year 2007. This list is currently on the IRS website and includes over 35,000 organizations in California alone, including 92 Granges! Is your Grange subject to losing its exemption?
If your annual gross receipts were $25,000 or less, you needed to file a form 990-N for the years 2007-2009. If your average gross receipts were over $25,000 you must have filed Form 990-EZ or a full 990. The IRS has issued guidance for relief to these small organizations. Forms may be filed no later than October 15, 2010 to obtain relief. The 990-N for 2009 must be filed electronically.
For back years you must file a 990-EZ (for 2007 or 2008) with the notation “Filed in lieu of Form 990-N” printed on top of the first page. Instructions are at the IRS website (http://www.irs.gov).
For organizations that needed to file 990-EZ (because of more than $25,000 in gross receipts) they will need to complete these back years returns and attach a Voluntary Compliance Program Checklist and pay a fee. This is also on the IRS website. There is no relief for organizations that were required to file other than a 990-N or a 990-EZ return.
For more information on forms and required headings, contact Inger Bevans at (831) 449-4021 or the California State Grange office. Our Group Exemption number is 1160 and legal name is “Grange Patrons of Husbandry” with your Grange name as the DBA.

Exempt Organizations - Public Disclosure Requirements in General

In general, what public disclosure requirements apply to tax-exempt organizations?

In general, exempt organizations must make available for public inspection certain annual returns and applications for exemption, and must provide copies of such returns and applications to individuals who request them.  Copies usually must be provided immediately in the case of in-person requests, and within 30 days in the case of written requests.  The tax-exempt organization may charge a reasonable copying fee plus actual postage, if any. The IRS must also make this same information available to the general public.

Page Last Reviewed or Updated: October 29, 2010 from: http://www.irs.gov/charities/article/0,,id=139231,00.html

Exempt Organizations - Documents Subject to Public Disclosure

What tax documents must an exempt organization make available for public inspection and copying?

An exempt organization must make available for public inspection its exemption application. An exemption application includes the Form 1023 (for organizations recognized as exempt under § 501(c)(3)), Form 1024 (for organizations recognized as exempt under most other paragraphs of § 501(c)), or the letter submitted under the paragraphs for which no form is prescribed, together with supporting documents and any letter or document issued by the IRS concerning the application. A political organization exempt from taxation under § 527(a) must make available for public inspection and copying its notice of status, Form 8871.

In addition, an exempt organization must make available for public inspection and copying its annual return. Such returns include Form 990 , Return of Organization Exempt From Income Tax, Form 990-EZ , Short Form Return of Organization Exempt From Income Tax, Form 990-PF, Return of Private Foundation, Form 990-BL , Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons, and the Form 1065 , U.S. Partnership Return of Income. 

An organization exempt under § 501(c)(3) must make available for public inspection and copying any Form 990-T, Exempt Organization Business Income Tax Return, filed after August 17, 2006.  Returns must be available for a three-year period beginning with the due date of the return (including any extension of time for filing).  For this purpose, the return includes any schedules, attachments, or supporting documents that relate to the imposition of tax on the unrelated business income of the charity.  See Public Inspection and Disclosure of Form 990-T for more information.

An exempt organization is not required to disclose Schedule K-1 of Form 1065 or Schedule A of Form 990-BL. With the exception of private foundations, an exempt organization is not required to disclose the name and address of any contributor to the organization.

A political organization exempt from taxation under § 527(a) must make available for inspection and copying its report of contributions and expenditures on Form 8872, Political Organization Report of Contributions and Expenditures. However, such organization is not required to make available its return on Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.

Page Last Reviewed or Updated: June 14, 2010 from:  http://www.irs.gov/charities/article/0,,id=135008,00.html

Exempt Organization Public Disclosure - Costs for Providing Copies of Documents

What does the IRS consider to be a reasonable charge for copying costs?

A tax-exempt organization may charge a reasonable fee for providing copies, which is generally defined as the amount charged by the IRS for providing copies. Under regulations issued in July 2004, the IRS may not charge more for copies than the fees listed in the Freedom of Information Act (FOIA) fee schedule.  In addition, although the FOIA fee schedule directs the IRS to provide the first 100 pages free, the regulations allow the exempt organization to charge a fee for all copies.  For non-commercial requesters, the FOIA schedule currently provides a charge of $.20 per page.

An organization may require payment before it provides copies, but must advise requesters of the total cost of the copies requested if adequate payment is not included with the request.  The organization may also charge the actual postage costs
it incurred to mail copies to the requester.

Page Last Reviewed or Updated: October 29, 2010 from:  http://www.irs.gov/charities/article/0,,id=135014,00.html

Exempt Organizations Public Disclosure - Penalties for Noncompliance

What are the penalties for failure to comply with the disclosure requirements, and who must pay them?

Responsible persons of a tax-exempt organization who fail to provide the documents as required may be subject to a penalty of $20 per day for as long as the failure continues.  There is a maximum penalty of $10,000 for each failure to provide a copy of an annual information return.  There is no maximum penalty for the failure to provide a copy of an exemption application.

Page Last Reviewed or Updated: October 29, 2010 from:  http://www.irs.gov/charities/article/0,,id=135028,00.html

Illinois Attorney General - Charitable Trust Database Search

 

Charitable Database Search

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The Charitable Database is a list of public charities and private foundations which are registered with the Attorney General’s Office and in compliance with the reporting requirements imposed upon them by Illinois law. You can search by charity name, charity number, FEIN number, city, state and/or zip code.

By using this search engine you can obtain financial details on those charities listed in the Charitable Database. Such details include the charity’s address and county, as well as its assets and income.

In addition, the Charitable Database includes scanned images of current complete annual financial reports filed with this Office after March 31, 2004. A complete annual financial report generally includes a charity’s Form AG990-IL and its IRS Form 990 or 990PF. A public charity’s annual financial report should include an audited financial statement if its annual gross receipts exceed $150,000 or if the charity used a paid professional fund raiser and raised contributions in excess of $25,000.

In reviewing these reports you must remember that the charity — not the Attorney General — prepares the reports. The Attorney General does not control the information contained on the report, and consequently this Office cannot guarantee the accuracy, quality, or validity of such information.

Please note that if a charity is not registered with this Office or has not timely filed its financial reports as required by Illinois law, information on that charity will not be available using this Charitable Database. However, the Illinois Attorney General does maintain a record of every charity ever registered with this Office. If you cannot find information on a particular charity using the Charitable Database, email us or you can call 312-814-2595 (TTY: 312-814- 3374) to find out if that charity was ever registered with this Office.

If you want to obtain copies of a charity’s registration statements and/or prior financial reports filed with this Office, you may request them by writing to the “Office of the Attorney General, Charitable Trust Bureau, 100 West Randolph Street, Chicago, IL 60601.”

Click on the following to search the database of registered charities:  Illinois Attorney General - Charitable Trust Database Search

Former tax preparer accused of stealing $400,000 from clients | The Rock River Times

former Boone County income tax preparer faces federal fraud charges for allegedly bilking clients and the government out of approximately $400,000.

Mario Carrillo, 42, was charged this week with 20 counts, including submitting false income tax claims, ….owner of You and Me Tax Service, used his business address, 128 N. State St., Belvidere mail fraud and wire fraud.

alleges Carrillo, from 2004 to 2009, prepared various sets of tax returns for several clients. One set of paperwork indicated clients would receive a small return. Clients were under the impression Carrillo filed their returns with the IRS.

However, Carrillo, according to investigators, did not file actual taxes, but sent false returns to the government and pocketed the inflated refund checks.

Click on the following for more details:  Former tax preparer accused of stealing $400,000 from clients | The Rock River Times

Obama to Pitch Making Research Tax Credit Permanent

increase and permanently extend a popular but costly tax credit for businesses’ research expenses, and to pay for it by closing other corporate tax breaks, according to administration officials.

Congress has extended it 13 times for as little as six months, and the uncertainty has long vexed businesses. It lapsed after 2009, and a proposal to renew it for this year is pending in the Senate.

Based on that history, the Treasury would probably give up as much as $100 billion in the coming decade

only research done in the United States is eligible.

Obama to Pitch Making Research Tax Credit Permanent - NYTimes.com

How the fight over tax breaks affects your bottom line

Take a look at the interact chart to see how the Democratic versus Republican tax cut proposal will affect your taxes.

Click on the following for the chart.  How the fight over tax breaks affects your bottom line | The Washington Post

Catholic Dioceses major contributors to repeal same-sex marriage

 The following Letter to the editor was published today in the Rockford Register Star: 

Donation questionable

This summer the Catholic Diocese of Rockford donated $5,000 to the “Yes on One” campaign that stripped marriage rights from Maine residents.
While the diocese can spend its money any way it likes, fair-minded parishioners may want to ask Bishop Doran if this was the best use of that money.
Could it have had a greater impact if had been spent locally rather than on a ballot initiative that had zero impact on parishioners, unless of course they had wanted to go to Maine to get married.
They also may want to remember that when they pass the collection basket.

— Mike Macocco, Rockford, Community Viewpoints Board member

For a better understanding what occurred and issues go to the November 25, 2009 issue of National Catholic Reporter:  Dioceses major contributors to repeal same-sex marriage | National Catholic Reporter

Manzullo unveils jobs plan

What is new here?

Republican Don Manzullo says he'd both cut taxes and end burdensome regulations he says stifle entrepreneurs.

His other proposals include increasing the meals and entertainment tax deduction for small businesses to 80 percent. He also wants to make it easier for small businesses to band together to purchase health insurance at more affordable group rates

Click on the following for more details:  Manzullo unveils jobs plan - - BusinessRockford.com

Where Illinois representatives stand on extending the first-time homebuyer tax credit

 

Rep. Donald Manzullo (R-16^th) is co-sponsoring two bills, H.R. 101 and H.R. 2655.

HR 101

1/6/2009–Introduced.

Economic Recovery Through Responsible Homeownership Act of 2009 – Amends the Internal Revenue Code to allow an individual taxpayer a refundable tax credit for the purchase in 2009 or 2010 of a residence located in the United States if the construction of such residence began before 2009. Allows a credit of either $2,000, $5,000, or $10,000 for down payments of 5, 10, or 15% of the residence’s purchase price respectively.

HR 2655

6/2/2009–Introduced.

Amends the Internal Revenue Code to: (1) extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined); (2) extend such credit and the waiver of recapture requirements for such credit through 2010; and (3) expand the election to treat a purchase of a principal residence as made in a prior taxable year for purposes of such credit.

Click on the following for the position of other Illinois representatives:  Where Illinois representatives stand on extending the first-time homebuyer tax credit | WBEZ / Chicago Public Radio Blog

Robert Reich’s statement of tax facts

Taken from:  http://www.robertreich.blogspot.com/

A Short Citizen's Guide to Kooks, Demagogues, and Right-Wingers On Tax Day

No one likes to pay taxes, so tax day typically attracts a range of right-wing Republicans, kooks, and demagogues, all of whom tell us how awful we have it. Herewith a short citizen's guide (that is, a citizen's guide that's short rather than a guide for short citizens) responding to the predictable charges:
1. "Americans pay too much in taxes." Wrong: The United States has the lowest taxes of all developed nations.
2. "The rich pay too much! The top ten percent of income earners pay over 72 percent of all income taxes!" Misleading: The main reason the rich pay such a large percent is they've become so much richer than the bottom 90 percent in recent years. If you look at what they pay as individuals -- the percent of their incomes over and above the highest rate below them -- you'll see a steady decline over the years. When Republican Dwight Eisenhower was president, the marginal rate on the highest earners was 91 percent (after deductions and tax credits, closer to 50 percent); by 1980 it was still up there, at 70 percent (an effective rate of closer to 45 percent); under Bill Clinton, it was 38 percent (an effective rate closer to 28 percent).
Look at the after-tax earnings of families and you'll see what's really going on. Between 1980 and 2000, the after-tax earnings of families at the top rose more than 150 percent, while the after-tax earnings of families in the middle rose about 10 percent. The Bush tax cuts of 2001 and 2003 raised the after-tax incomes of most Americans by a bit over 1 percent -- but raised the after-tax incomes of millionaires by 4.4 percent.
3. "The bottom 60 percent pay only 3.3 percent of the taxes!" Misleading again. Most Americans are paying more in sales taxes than they ever have. Property taxes have also been rising at a steady clip. And Social Security taxes have also risen (thanks to the Greenspan Commission), while earnings over about $100,000 aren't subject to Social Security taxes. So-called "sin" taxes (mostly beer and cigarettes) have also skyrocketed. All of these taxes take a bigger bite out of the paychecks of people with lower incomes than they do people with higher incomes.
4. "Obama is raising your taxes!" Wrong. Obama is cutting taxes for 95 percent of Americans, by about $400 per person a year -- not a whopping tax cut, to be sure, but not a tax increase by any stretch. Only the top 2 percent will have a tax increase, but even this tax increase is modest. Basically, they go back to the rates they were paying under Bill Clinton (their deductions will be limited to 28 percent, which is only fair). And they won't start paying this until 2011 anyway.
5. "The huge debts we're wracking up will cause your taxes to rise!" Wrong again. When it comes to the national debt, as I've said before, the relevant statistic is the ratio of debt to the gross domestic product. The only sure way to bring that debt down and make it manageable in future years is to get the economy growing again -- which requires that, in the short term, the government spend a lot of money (because consumers and businesses won't). In the long term, the biggest source of concern is rising health-care costs. And that's something Obama and Congress are aiming to tackle.
6. "We have a patriotic duty to stand up against Washington taxes!" Just the opposite. We have a patriotic duty to pay taxes. As multi-billionaire Warrent Buffett put it, "If you stick me down in the middle of Bangladesh or Peru or someplace, you'll find out how much this talent is going to product in the wrong kind of soil. I will be struggling thirty years later." President Teddy Roosevelt made the case in 1906 when he argued in favor of continuing the inheritance tax. "The man of great wealth owes a particular obligation to the state because he derives special advantages from the mere existence of government."
An acquaintance from law school, now a partner in one of Washington's biggest and wealthiest law firms, explained to me one day over lunch how he and his partners use tax rules to create offsetting taxable gains and losses, and then allocate the gains to the firm's foreign partners who don't pay taxes in the United States. That way, they keep the losses here and shelter their income abroad. I noticed he had an American flag lapel pin. "You're supporting our troops," I said, referring to his pin. "Yup," he replied, entirely missing my point.
True patriotism isn't cheap. It's about taking on a fair share of the burden of keeping America going.

Current 2009 IRS Auto sales tax deduction

Sales Tax Deduction for Vehicle Purchases

The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless of whether a taxpayer itemizes deductions on Schedule A. Purchases before Feb. 17, 2009, are not eligible for this special deduction.

The deduction is limited to the tax on up to $49,500 of the purchase price of an eligible motor vehicle. The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified AGI between $125,000 and $135,000.

IR-2009-30, March 30, 2009

Rep. Manzullo attempts to place his new car credit as an amendment to Stimulus Plan

Manzullo Continues Pushing Car Purchase Credit in Washington

The press release below was sent by 16th District Congressman Don Manzullo:

Manzullo to Offer Tax Credit for New Vehicle Purchases as Amendment to House Stimulus Bill

(WASHINGTON) As the U.S. House prepares to vote this week on a flawed $825 billion bill that does little to put Americans back to work, Congressman Don Manzullo (R-IL) is offering an amendment to stimulate the economy and create jobs by giving Americans a $5,000 tax credit to purchase a new vehicle.
With 13 million Americans employed by the automobile industry and its suppliers, Manzullo’s tax credit amendment – which he offered as a stand-alone bill (The Get America Moving Again Act -- HR 550) earlier this month – would immediately stimulate vehicle sales and put millions of Americans back to work. The automobile industry accounts for 20 percent of all U.S. retail sales, and billions of dollars in state and local sales taxes.
The drop in U.S. vehicle sales from 16.2 million in 2007 to 10.5 million in 2008 removed $175 billion directly from our economy and has been one of the leading causes of America’s economic downturn and huge job losses.
“The current stimulus bill is chocked full of spending that has nothing to do with stimulating the economy or creating jobs, including hundreds of millions of dollars for contraceptives, the National Endowment for the Arts, and laying new sod on the National Mall,” Manzullo said.
“My vehicle tax credit proposal is a real stimulus that will bolster vehicle sales, put Americans back to work, and re-ignite our economy. I urge my colleagues to support this amendment so we can get America moving again.”
Manzullo is scheduled to testify later today before the House Rules Committee to seek approval to offer his amendment for a vote on the House floor tomorrow. The Rules Committee determines whether amendments are allowed to proceed to the floor for votes.
The Get America Moving Again Act of 2009 (HR 550) would bolster American manufacturing and spur vehicle sales and production by giving Americans tax credits of $5,000 to purchase a new vehicle costing less than $50,000 and $2,000 to purchase a late model used vehicle through Dec. 31, 2009.
The bill is co-sponsored by Rep. Fred Upton (R-MI), co-chair of the House Auto Caucus, and is supported by the American International Automobile Dealers Association and Chrysler.