IRS publishes technical guides for tax-exempt groups and credit unions

The Internal Revenue Service’s Exempt Organizations and Government Entities unit has published two new technical guides aimed at nonprofits, especially those that want to stay compliant and avoid audits.

The two new technical guides are:

The guides are issue-specific documents that update and combine the Audit Technique Guides with other technical content. Once they’re all finished, the various technical guides will replace the corresponding Audit Technique Guides.

TG 48 includes information on unrelated business income and unrelated business income tax. TG 14 discusses the distinct tax exemption criteria of credit unions under Section 501(c)(14)(A) and mutual reserve fund organizations described under Sections 501(c)(14)(B) and (C) of the Tax Code. 

The IRS said it’s also offering a free 10-course workshop to help Section 501(c)(3) tax-exempt organizations and those that would like to apply for federal tax-exempt status. 

The online training is free at stayexempt.irs.gov. The virtual workshop includes interactive instruction for both existing 501(c)(3) organizations and those seeking tax-exempt status and will explain the benefits, limitations and expectations for those organizations. It covers 10 specific topics related to 501(c)(3) tax-exempt groups, including applying for and maintaining tax-exempt status, employment issues, required disclosures, a Form 990 overview, unrelated business income, charitable gaming for exempt organizations, deduction of charitable donations, protecting Social Security numbers, as well as the thorny issue of political campaigns and charities and the oft-violated ban on political campaign intervention. 

“Political campaign activity can jeopardize a Section 501(c)(3) organization’s exempt status,” the IRS said in an email Wednesday to exempt organizations. “This course provides examples of prohibited activities and explains steps an organization should take to avoid an inadvertent violation.”