Late 2015 IRS Update for Tax Exempt Orgs

As we near the end of 2015, there are numerous IRS-related issues of interest to the nonprofit and tax-exempt community.  Below is a quick summary of the ones that have caught my interest recently:    

Read more: Late 2015 IRS Update for Tax Exempt Orgs

New article -- Top Nonprofit-Specific Legal Issues

Do you work for a nonprofit organization or serve on a nonprofit board?  If so, please check out my newest article that addresses some of the more common uniquely nonprofit issues that come up for tax-exempt organizations (the article is focused primarily on looking at these issues from the perspective of charitable organizations).

2016 Tax Update Presentation

Please join me and the folks at Boeckermann Grafstrom & Mayer for lunch on Thursday, October 22nd from 11AM to 1PM.

BGM staff will be discussing issues regarding preparing for audits and updates on the new financial statement requirements. I will be providing an update on federal tax issues that affect tax exempt organizations, including issues with the Form 990 and priorities for the IRS in 2016.

A free lunch will be provided for all attendees. Please feel free to bring a friend, co-worker or anyone you think may benefit!
Attendees are not required to sign-up prior to the event, but it's appreciated! If you plan on attending, please email Crystal at This email address is being protected from spambots. You need JavaScript enabled to view it.

The National Taxpayer Advocate Continues to Criticize the 1023-EZ

In mid-July, the National Taxpayer Advocate’s office released the Fiscal Year 2016 Objectives Report to Congress, in which the National Taxpayer Advocate, Nina Olson, continued to criticize the use of the Form 1023-EZ to obtain 501(c)(3) status.  If you take nothing else from her report, you should read this statement summarizing her opinion of the current iteration of the 1023-EZ: “Because Form 1023-EZ does not require applicants to provide supporting documentation or substantiation, but only to attest they qualify for exempt status, the IRS has in effect relinquished its power to educate and regulate taxpayers before it confers exempt status.”

Read more: The National Taxpayer Advocate Continues to Criticize the 1023-EZ

Cautionary Tale - Liability for Breach of Fiduciary Duties

A recent decision by the 3rd Circuit Court of Appeals is raising some eyebrows and hopefully causing some directors and officers of nonprofit corporations to think twice before taking a casual approach to their duties.  The Court in In re: Lemington Home for the Aged upheld a jury verdict that found fifteen former directors jointly and severally liable for $2.25 million dollars for breach of fiduciary duties, and imposed punitive damages of $1 million and $750k against the two former officers. 

Read more: Cautionary Tale - Liability for Breach of Fiduciary Duties


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