Exempt Organization Update

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Issue Number:    2012-12

Inside This Issue

1. IRS issues proposed regulations on new requirements for 501(c)(3) hospitals
2. Reminder: FBAR filing deadline
3. Don't miss upcoming phone forum on exempt organizations and gaming
4. Sale of bond-financed property may jeopardize tax-exempt status of bonds
5. Register for the July 25 EO webinar: "Churches and Religious Organizations"
6. Reminder: Hire a veteran in 2012 and receive significant tax benefits

The IRS has issued a notice of proposed rulemaking regarding certain additional requirements enacted by the ACA applicable to charitable hospitals (see "Additional Requirements for Tax-Exempt Hospitals").

The proposed regulations address the requirements that charitable hospitals:

• establish written financial assistance and emergency medical care policies,
• limit amounts charged for emergency or other medically necessary care to individuals eligible for assistance under the hospital's financial assistance policy, and
• make reasonable efforts to determine whether an individual is eligible for assistance under the hospital’s financial assistance policy before engaging in extraordinary collection actions against the individual. 

Comments are requested by Sept. 24, 2012.

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Helpful information for Report of Foreign Bank and Financial Accounts (FBAR) filings.

• The filing deadline for FBARs is June 30, 2012, no exceptions.
• FBAR filings  must be received by June 30, not post-marked.
• FBAR e-file is now available.
• Where do you file FBAR?
• IRS offers an email address for your FBAR inquiries:  FBARquestions@irs.gov
• Need FBAR and Title 31 assistance? Contact the IRS helpline from within the U.S. or from abroad.

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Don't miss listening to the July 18 phone forum where IRS Exempt Organizations specialists will lead a discussion on six topics of importance to exempt organizations that conduct gaming. Topics include the impact of gaming on tax-exempt status, internal controls and recordkeeping, Form 990 filing requirements, unrelated business income tax, filing requirements for payments made to individuals and wagering/excise taxes.

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In their need to raise funds, 501(c)(3) organizations sometimes sell property financed with tax-exempt bonds. These sales could cause the bond issue to become taxable.

Sale of Assets Financed with Tax-Exempt Bonds by State and Local Governments and 501(c)(3) Organizations provides basic information concerning on remedial actions needed to preserve the tax-exempt status of the bond issue.

The IRS also has released the new Publication 5005, Your Responsibilities as a Conduit Issuer of Tax-Exempt Bonds. This publication provides an overview for state and local governments of the responsibilities of the conduit issuer with respect to tax compliance in municipal financing arrangements, commonly known as conduit financings.

For more information, go to Tax Exempt Bond Community on IRS.gov.

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Please register for the July 25 EO webinar, "Churches and Religious Organizations."

This free webinar will cover the following topics:

• When it comes to taxes, what is a "church?"
• What is a “religious organization?”
• How do you apply for tax exempt status?
• How to stay exempt: do's and don'ts
• Special rules for compensation of ministers
• Recordkeeping and filing
• Rules limiting an IRS audit of a church

Presentation times: 2 p.m. Eastern Time, 1 p.m. Central Time, Noon Mountain Time, and 11 a.m. Pacific Time

Visit the following archived webinars at IRS video portal under the non-profit tab:  

• Starting and Operating Charities for Disaster Relief (May 30, 2012)
• International Activities of Domestic Charitable Organizations (August 4, 2011)
• Starting off Right – What New 501(c)(3) Organizations Need to Know (April 28, 2011)
• Starting off Right - What New NON-501(c)(3) Organizations Need to Know (February 24, 2011)

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A law change enacted late last year now provides an expanded Work Opportunity Tax Credit (WOTC) to employers that hire eligible unemployed veterans. The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations. The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hire, hours a veteran works and the amount of first-year wages paid. Employers who hire veterans with service-related disabilities may be eligible for the maximum credit.

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