Colette’s article highlights important information that all nonprofits should know about the IRS. Their website is full of very valuable information and a reference that we use consistently. One other site that you should be checking on a regular basis; Guidestar.

Check Guidestar on the internet to be sure that your information, as a nonprofit, is correct and that there is nothing out there in cyberspace that is incorrect or misleading. Google “Guidestar charity check” to look up the information on your charity that everyone else sees!

Kathy Hostetler, CPA

Will the IRS be looking at you? The “Exemption Organizations” section of the IRS has new plans for 2009 which include continued focus on ensuring that exempt organizations are not involved in any activities that could possibly jeopardize their tax exemption status. You may not even know it, but the IRS could be conducting a “ROO” on your organization. An ROO is a Review of Operations. They do this using any information available to them, including Google searches. An ROO could potentially lead to an “EOCU” check which is an Exempt Organization Compliance Unit check. In an EOCU, the IRS will contact you for information. You may be more likely to be under IRS scrutiny if you are delinquent in filing your Form 990 or if you are involved in certain types of activities. Currently and in the recent past, the IRS has focused more on colleges/universities, political activities, hospitals, community foundations, and non-filers.

Don’t forget to periodically check out the “Charities and Non-Profits” section of IRS.gov. The IRS has made efforts to continue to improve the information available at this website and you can find some very useful information. You can also sign up for the exempt organizations e-newsletter. You should consider checking out stayexempt.org which includes fun interactive mini-courses on what you should know to stay tax exempt.

Colette Kamps, CPA