If you are a new employer, or new to dealing with federal employment taxes, the first place to go for information is Publication 15, Employer’s Tax Guide (Circular E). This publication, revised annually, contains basic information employers need to collect information needed to determine and pay their and employees’ employment tax liability, file correct tax returns, and withhold federal taxes. (Internal Revenue Service)
We extend our heartfelt support to the communities impacted by Hurricane Helene in western North Carolina. We'll continue to share resources for nonprofits and how to help.
IRS
This article addresses high-level legal concerns facing public charities and private foundations as they consider whether and how to compensate their directors. (Robinson Bradshaw)
Compensating Nonprofit Directors – Trend or Taboo?
- Debunk Nonprofit Myths
Some assumptions about nonprofits are like urban legends. Like the legendary alligators in New York City sewers, these stories have gained credibility through their longevity. Let’s debunk some such myths: 1 Nonprofits can’t make a profit. The IRS guidelines clearly state that profits can’t be distributed to nonprofit board members (as corporate profits are to shareholders), but they don’t say that nonprofits can’t have profits.
The Guidebook for Boards of Directors of North Carolina Nonprofit Corporations provides an overview of the role and responsibilities as a board member of a North Carolina nonprofit, including a primer on nonprofit organizations, essential elements of a nonprofit board, duties and liabilities of nonprofit board members, and the basics of tax exemption.
©2008 North Carolina Center for Nonprofit Organizations, Inc.
The Center has submitted comments asking the Internal Revenue Service and the Treasury Department to develop rules that will preserve the rights of 501(c)(3) nonprofits to engage in nonpartisan civic engagement. The Center’s comments are in response to proposed regulations on political activity by 501(c)(4) social welfare organizations. The confusing language of the proposal would likely discourage foundations from su
Appropriate document retention is important for a nonprofit's compliance with state and federal law, while balancing the need for managing storage space (both physical and digital). A clear policy for staff can prevent the innocent destruction or disposal of documents.
Annual Filing and Forms - Exempt organizations are required to file annual returns, although there are exceptions. If an organization does not file a required return or files late, the IRS may assess penalties. In addition, if an organization does not file as required for three consecutive years, it automatically loses its tax-exempt status.
The Pension Protection Act of 2006 enacted numerous changes to the tax law provisions affecting tax-exempt organizations, including public disclosure of UBIT Returns. "An organization exempt under Internal Revenue Code section 501(c)(3) must make available for public inspection and copying any Form 990-T filed after August 17, 2006.
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. It is a nine digit number that the IRS assigns to organizations in the following format: 00-0000000 (en español).