May 20, 2013

Taxes

Inspector General's Report on the IRS: A Summary

It’s been a week since the bombshell admission by IRS Exempt Organizations (EO) Director Lois Lerner that the IRS had targeted for special scrutiny conservative groups seeking tax-exempt recognition under Section 501(c)4 of the Internal Revenue Code. NPQ has been reporting on this all week, and the story has moved so fast that the Treasury Department investigation report that precipitated the furor has almost been lost in the rush.

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IRS at Center of Firestorm: Ugly Update

NewsThe firestorm unleashed by Friday’s admission by IRS officials that the agency had targeted some applications for tax-exempt recognition based on political keywords like “conservative” and “Tea Party” continues.

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IRS Targeting of Conservative Groups a Threat to Nonprofit Sector

IRSBy its own admission, between 2010 and 2012, the IRS subjected groups to extra scrutiny based on buzzwords like “tea party” and “patriot” in their names. We would love to hear from you on this turn of events. What should be the nonprofit sector’s response?

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“Dystopian” NC Gov’t Offers Businesses Tax Breaks, Cuts Rural Funding

McCroryAre Governor McCrory, Art Pope, and the Republican leaders of the North Carolina state legislature turning the Tar Heel State into a corporate playground?

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Why Nonprofits Need to Take on Tax Policy – NOW!

TowersNPQ has always cautioned that ignoring your public policy context is akin to turning over the keys to your house and having to ask permission to sleep on the couch. And of all the aspects of your public policy context, the scaffolding of tax structures is king

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Coburn Calls for End to Tax Exemption for Pro Sports Leagues

NFLAn amendment to the Marketplace Fairness Act would end the ludicrous loophole that allows the NFL to function as a tax-exempt organization.

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New Orleans Gives $800K in Tax Breaks to the NFL

SuperdomeWhy, exactly, does a multi-million dollar entertainment enterprise need relief from paying municipal taxes?

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The Case against Rainy-Day Framing of Budgets and Taxes

RainFew things are more loathed by the public than taxes, and our cultural models encourage us to view government as something to be resisted and our tax system as a faulty or rigged vending machine. So how do we change these entrenched ways of thinking? The FrameWorks Institute has some ideas.

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Tax Equity and the Nonprofit Sector

I paidWhen it comes to taxation, our country isn’t broke, just twisted—with a system skewed to favor the super-rich. What can nonprofits do to help? The author proffers seven ways to promote tax progressivity.

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Nonprofits and State Tax Systems: The Big Picture

PomIn order to weigh in on tax reform, nonprofits must first understand how states raise their money—which, thanks to murky documentation, is no easy feat. This investigative report delves into state taxation schemes and how they affect the nonprofit sector.

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Potentially Huge Market for Nonprofits: “One Toke Over the Line” to Feds

MJIn Colorado and Washington, voters have outright legalized marijuana for recreational use, enabling what could be a lucrative market—if the federal government doesn’t nix it.

 

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On Both Sides of the Pond, Government Examines Assisting Charities

FlagsGovernment working groups in both the U.S. and the U.K. are looking at ways in which they may be able to improve the conditions of charities working with governmental agencies.

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The Anti-PILOT: Community Casts Vote of Confidence in Nonprofit

NewsThroughout the U.S., many nonprofits are finding their tax-exempt status under siege by budget-beleaguered local governments, but Calexico, Calif. offers a glimpse of a different approach.

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Limit Charitable Deduction on “Ideological” Contributions?

OpenDavid Callahan suggests that “wealthy ideological donors use their tax-deductible donations to engage in politics” and that this activity shouldn’t generate tax deductions.

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Country Clubs and Homeless Shelters: A Nonprofit Is a Nonprofit?

CartsThe public is understandably confused about why their local country club might be a tax-exempt entity.

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Does IRS Have Resources to Do Its Increasingly Complicated Job?

IRSWhen people talk about organizations having to do more with less, they’re typically not referring to the Internal Revenue Service, though it appears that dilemma may be the case at the IRS, too.

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In Tenn., a Plan to Give L3Cs Tax Exemptions

NewsAt a recent “legislative coffee,” Tenn. State. Rep. Bill Sanderson discussed his plan to introduce a bill that would give low-profit limited liability corporations tax exemptions.

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Bill Would Restore Hawaii’s Charitable Giving State Tax Deduction

LeiDid you know that Hawaii is one of only three states without a charitable giving tax incentive in its state tax structure? A new bill in the Aloha State aims to change that.

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Can the Safety Net Survive the “Idiocy” of Sequestration?

White HouseIn a call with nonprofit leaders, Jonathan Greenblatt, special assistant to the president, indicated that the White House is opposed to the pending domestic program budget cuts.

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Providence, R.I. Mayor Credits PILOTs for Big Role in Recovery

AngelIn many instances, payments in lieu of taxes are little more than a pittance to local governments, but in Providence, R.I., PILOTs have reportedly been a huge help.

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Taking on the Tax Code: Corporate Loopholes or Social Safety Net?

LoopholeThis nation’s loophole-ridden tax code is truly an expression of political bipartisanship in service of large corporations. The fiscal cliff bill enshrines one such loophole for another two years.

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Governments Finding Creative Ways to Chip away at Tax Exemptions

NewsBeyond payments in lieu of taxes, some municipal governments are turning to new fees to squeeze funds out of nonprofit property owners. What does “tax-exempt” mean today?

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Fla. Prison Labor Nonprofit Eyes For-Profit Competition

NewsIn Florida, a nonprofit that uses prison labor manufactures license plates and now confronts the state government that is looking to contract the work out to a private vendor.

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IRS to Auction Art Taken from Nonprofit American Indian Services

NewsIt’s unusual to see the IRS seizing the assets of an operating nonprofit for nonpayment of taxes, but that is what has happened to the Sioux Falls, S.D.-based American Indian Services, Inc.

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In Defense of Taxes—Even If They Might Cut into Charitable Giving

DeathAs we consider the broader implications of tax reform and government spending in the wake of the “fiscal cliff” deal, nonprofit leaders need to emphasize what we buy with our tax dollars.

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Why Time Spent Volunteering Is Not Tax-Deductible

NewsIt’s not uncommon for volunteers, including board members of nonprofit organizations, to ask why their time can’t be treated as a deductible contribution. Here’s why.

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Is There a Taxability Threshold for Nonprofit Incidental Income?

MaineRemember the old saw, “As Maine goes, so goes the nation?” If that’s still true, nonprofits will be watching as the Maine Supreme Judicial Court hears arguments on the taxability of nonprofits’ incidental earned income.

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United Front? Convergent and Divergent Voices in the Charitable Deduction Debate

Cow

From 10,000 feet above, the nonprofit sector has largely come together with a unified message on the charitable deduction, but up close, one finds other—perhaps deeper—concerns at play.

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White House Analysis of Charitable Deduction Options: A Beltway Punch and Judy Show

Punch and JudyThe charitable tax deduction cap debate feels like a Punch and Judy show, but nonprofits must be aware of scenarios that could emerge and, ultimately, they must be prepared to take a stance on the budget.

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What Will (and Won’t) the IRS Be Tackling on Tax-Exempts in 2013?

IRSNonprofit readers should know what the Internal Revenue Service, and particularly its exempt organization (EO) division, will—and will not—be taking up in the coming year.

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