Impact of the Taxpayer Bill of Rights 2 on exempt organizations
Article Abstract:
The Taxpayers Bill of Rights 2, enacted in 1996, establishes penalty excise taxes and higher disclosure standards for transactions between tax-exempt organizations under IRC section 501(c)(3) and 501(c)(4) and organizational managers or disqualified persons. Personal liability for the excise taxes attaches for excess benefits accrued in transactions with the organization. While the penalties are considered intermediate sanctions, the IRS may choose to pursue revocation of exempt status as well. Providing contemporaneous documentation will shift the burden of proof on excess benefit transactions to the IRS.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1996
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The grantor trust: handmaiden to the IRS and servant to the taxpayer
Article Abstract:
Grantor trusts which were meant to stop tax avoidance through the trust medium have been used since their inception for the tax benefits they may provide. The original intention in 1954 was to treat grantor trusts as non-trusts by attributing income to the grantor, but the IRS has not consistently applied the non-trust concept. Congress should legislate to provide that consistency since it is unlikely to curb the continual invention of new taxpayer uses of grantor trusts.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1997
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What you can do if you can't pay your tax bill
Article Abstract:
A number of options are available to taxpayers that are unable to meet tax payment obligations in a timely fashion. Making some form of payment is important because failure-to-file penalties and failure-to-pay penalties and interest charges may apply. Even if an extension is received, interest charges will be incurred. To minimize penalities, taxpayers should be encouraged to file in a timely fashion and borrow funds or use an installment agreement with the IRS.
Publication Name: Taxes: The Tax Magazine
Subject: Business
ISSN: 0040-0181
Year: 1996
User Contributions:
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- Abstracts: ESBT definitions and distributions. Taxpayer Bill of Rights 2 offers added protection. UNICAP rules for changed status as small reseller
- Abstracts: A study of the environmental disclosure practices of Australian corporations. Environmental performance evaluation and reporting for private and public organisations: an overview
- Abstracts: Looking across rather than up and down: on the need to explore the lateral processing of information. The impact of perceived environmental uncertainty and individual differences on management information requirements: a research note
- Abstracts: Automated audits. Taxprep, take two. ERPs: a buyer's market. (Enterprise Resource Planning) systems
- Abstracts: Changes in corporate capital structures: evidence from the 1986 Tax Reform Act. Creating a meaningful working capital guarantee program for the small exporter: the case of the U.S. Eximbank