Tax-Exempt Organization Services
For those with a tax-exempt organization, we’ll
make sure you’re compliant.
What Is A Tax-Exempt Organization?
Federal tax law allows some organizations to remain
tax exempt if the entity’s purpose is not-for-profit
and falls under specific IRS guidelines. For instance,
under U.S. Tax Code Section 501(c), an organization
can be tax-exempt if its primary activities are, for
example, for public safety, charitable, educational or
religious. According to the IRS, tax-exempt organizations cannot be organized or operated for the benefit
of private interests and cannot be considered “action
organizations” that attempt to influence legislation or
participate in political campaign activities.
Tax-exempt organizations are entitled to several
benefits, including the following:
- Exemptions from federal, state and local taxes
- Certain protections from legal actions
- Ability to provide tax deductions to individual donors
- Opportunity to receive grants from the government or foundations
While these benefits might be incredibly appealing to
a taxpayer, tax-exempt organizations are required to
follow strict guidelines outlined by the IRS in order to
maintain their tax-exempt status.
Forming A Tax-Exempt Organization
Organizations who are already tax-exempt, or are
considering applying for tax-exempt status must
take several things into account:
- Does the organization serve a public purpose designated by the U.S. Tax Code?
- Have the proper documents been filed with the IRS to maintain tax-exempt status?
- Is the organization remaining compliant with their day-to-day activities?
- Are the organization’s policies and procedures in line with the U.S. Tax Code’s requirements?
- Has restructuring impacted the tax-exempt status of an organization?
Tax-Exempt Organizations And The IRS
The IRS is currently reviewing tax-exempt organizations that the agency feels might be abusing the tax
system. Based on a Congressional mandate, the IRS
created the Exempt Organizations Division within the
Tax Exempt and Government Entities Division in order
to increase agency oversight of these organizations.
The agency is on the lookout for tax-exempt organizations that are involved with abusive tax avoidance
transactions, abusive credit counseling agencies
and organizational strategies that allow for excessive
compensation
We’ll Keep You Compliant And Defend You Against IRS Scrutiny
alliantNational’s team of experts helps with:
- Reasonable compensation analysis
- Internal investigations and review of governance best practices
- Analysis of activities that may give rise to unrelated business income
- Representation in audit at the federal or state level
- Representation before Congress, Treasury or the IRS on any matter
- Assistance in transactional structuring and planning, including joint ventures
- Help with determining appropriate reporting positions and overall tax compliance
“The planning, structuring and review involved with tax-exempt organizations is
certainly challenging, and the scrutiny the
IRS places on these entities makes compliance that much more important. Our
group of professionals knows from experience how tax-exempt organizations need
to handle themselves so the IRS doesn’t
come knocking.”
- Eric Hylton
Former IRS Commissioner
of the SB/SE Division
TAX-EXEMPT ORGANIZATION SERVICES
For those with a tax-exempt organization
We’ll make sure you’re compliant.
We’ll Protect You
Although many CPAs are familiar with the application of the substantive law, additional knowledge and experience applying the numerous procedural mechanisms available to taxpayers can be invaluable in determining the course of your audit.
alliantNational’s team of experts helps with:
General Consulting
Pre-Examination Analysis
Risk Analysis
IRS Service Center Support
Audit Planning and Defense
Examination Planning and Litigation Support
Conference Appeals Representaiton
We’ll Keep You Compliant And Defend You Against IRS Scrutiny
alliantNational’s team of experts helps with:
Reasonable compensation analysis
Internal investigations and review of governance best practices
Analysis of activities that may give rise to unrelated business income
Representation in audit at the federal or state level
Representation before Congress, Treasury or the IRS on any matter
Assistance in transactional structuring and planning, including joint ventures
Help with determining appropriate reporting positions and overall tax compliance
WHAT IS A TAX-EXEMPT ORGANIZATION?
Federal tax law allows some organizations to remain tax exempt if the entity’s purpose is not-for-profit and falls under specific IRS guidelines
For instance, under U.S. Tax Code Section 501(c), an organization can be tax-exempt if its primary activities are, for example, for public safety, charitable, educational or religious. According to the IRS, tax-exempt organizations cannot be organized or operated for the benefit of private interests and cannot be considered “action organizations” that attempt to influence legislation or participate in political campaign activities.
Tax-exempt organizations are entitled to several benefits, including the following:
- Exemptions from federal, state and local taxes
- Certain protections from legal actions
- Ability to provide tax deductions to individual donors
- Opportunity to receive grants from the government or foundations
FORMING A TAX-EXEMPT ORGANIZATION
Organizations who are already tax-exempt, or are considering applying for tax-exempt status must take several things into account:
Does the organization serve a public purpose designated by the U.S. Tax Code?
Have the proper documents been filed with the IRS to maintain tax-exempt status?
Is the organization remaining compliant with their day-to-day activities?
Are the organization’s policies and procedures in line with the U.S. Tax Code’s requirements?
Has restructuring impacted the tax-exempt status of an organization?
Comprehensive Compliance Assistance
- Risk Pool and UTP Review
- FIN 48 Analyses
- Review of concern areas
- Foreign Bank Report Filings analysis
- Substantiation and documentation support
Proactive Risk Assessment
- Evaluation of your captive’s risk profile
- Identification of potential IRS red flags
- Strategies to demonstrate risk distribution and legitimate insurance activities
Expert-Led Guidance
- Team includes former IRS Commissioners
- In-depth understanding of IRS scrutiny on captives
- Up-to-date knowledge of IRS “Dirty Dozen” list and micro-captive issues
- Tailored strategies to navigate complex IRS requirements
Robust Audit Defense
- Expert representation during IRS audits
- Assistance in avoiding understatement and negligence penalties
- Protection against unwinding of captive formation
- Preservation of captive insurance benefits
