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H&r Block Advantage

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H&r Block Advantage

H&r block advantage Index A Affiliated corporations, Aircraft used by affiliated corporations. H&r block advantage Agri-biodiesel, defined, Agri-biodiesel. H&r block advantage Air transportation taxes, Air Transportation Taxes 225-mile-zone rule, Taxable transportation. H&r block advantage Alaska, Transportation between the continental U. H&r block advantage S. H&r block advantage and Alaska or Hawaii. H&r block advantage , Transportation within Alaska or Hawaii. H&r block advantage , Alaska and Hawaii. H&r block advantage Baggage, Excess baggage. H&r block advantage Bonus tickets, Bonus tickets. H&r block advantage Credits or refunds, Credits or refunds. H&r block advantage Exemptions, Exemptions. H&r block advantage Export, Exportation. H&r block advantage Fixed-wing aircraft, Fixed-wing aircraft uses. H&r block advantage Hawaii, Transportation between the continental U. H&r block advantage S. H&r block advantage and Alaska or Hawaii. H&r block advantage , Transportation within Alaska or Hawaii. H&r block advantage , Alaska and Hawaii. H&r block advantage Helicopters, Certain helicopter uses. H&r block advantage , Transportation of Property by Air International air travel facilities, International Air Travel Facilities Military personnel, Military personnel on international trips. H&r block advantage Package tours, Package tours. H&r block advantage Persons by air, Transportation of Persons by Air Persons liable, Liability for tax. H&r block advantage , Liability for tax. H&r block advantage Property by air, Transportation of Property by Air Tax rates, Transportation of Persons by Air Taxable transportation, Taxable transportation. H&r block advantage Travel agency, Liability for tax. H&r block advantage Uninterrupted international, Uninterrupted international air transportation. H&r block advantage Aircraft, Fixed-wing aircraft uses. H&r block advantage Affiliated corporations, Aircraft used by affiliated corporations. H&r block advantage Small planes, Small aircraft. H&r block advantage Aircraft museum, In an aircraft or vehicle owned by an aircraft museum (No. H&r block advantage 15). H&r block advantage Alaska Air transportation taxes, Transportation between the continental U. H&r block advantage S. H&r block advantage and Alaska or Hawaii. H&r block advantage Tax on diesel fuel or kerosene, Removal for sale or use in Alaska. H&r block advantage Alcohol and tobacco taxes, Excise Taxes Not Covered Alternative fuel credit, Alternative fuel credit. H&r block advantage Alternative fuel, defined, Other fuels. H&r block advantage American Red Cross, International organizations and the American Red Cross. H&r block advantage Answering service, Answering services. H&r block advantage Appeal procedures, Examination and Appeal Procedures Approved refinery, defined, Approved terminal or refinery. H&r block advantage Approved terminal, defined, Approved terminal or refinery. H&r block advantage Arrow shafts, Arrow Shafts Assistance (see Tax help) Aviation gasoline, defined, Aviation gasoline. H&r block advantage B Back-up tax, Back-up Tax Biodiesel, defined, Biodiesel. H&r block advantage Blended taxable fuel, defined, Blended taxable fuel. H&r block advantage Blender, defined, Blender. H&r block advantage Blocked pump, Blocked pump. H&r block advantage Blood collector organizations, qualified, Exclusive use by a qualified blood collector organization (No. H&r block advantage 11). H&r block advantage , Qualified blood collector organizations. H&r block advantage Boats, In a boat engaged in commercial fishing (No. H&r block advantage 4). H&r block advantage Bonus tickets, Bonus tickets. H&r block advantage Bows, Quivers, Broadheads, and Points, Bows, Quivers, Broadheads, and Points Bulk transfer, defined, Bulk transfer. H&r block advantage Bulk transfer/terminal system, defined, Bulk transfer/terminal system. H&r block advantage Buses, In certain intercity and local buses (No. H&r block advantage 5). H&r block advantage , In a qualified local bus (No. H&r block advantage 6). H&r block advantage , In a school bus (No. H&r block advantage 7). H&r block advantage Tire tax, Qualifying intercity or local bus. H&r block advantage C Cellulosic biofuel, Cellulosic biofuel. H&r block advantage Chemicals, ozone-depleting, Environmental Taxes Claims Claiming a credit, Claiming a Credit on Form 4136 Claiming a refund, Claiming A Refund Filing claims, Filing Claims Coal Blending, Blending. H&r block advantage Exemptions, Exemption from tax. H&r block advantage Producer, Coal Production, Coal production. H&r block advantage Selling price, Determining tonnage or selling price. H&r block advantage Tax rates, Tax rates. H&r block advantage Coin-operated telephones, Coin-operated telephones. H&r block advantage Comments, Comments and suggestions. H&r block advantage Commercial aviation, In commercial aviation (other than foreign trade). H&r block advantage Commercial fishing, In a boat engaged in commercial fishing (No. H&r block advantage 4). H&r block advantage Commercial waterway transportation, Commercial waterway transportation. H&r block advantage Communications taxes Credits or refunds, Credits or Refunds Exemptions, Exemptions Figuring the tax, Figuring the tax. H&r block advantage Local telephone service, Local telephone service. H&r block advantage Local-only service, Local-only service. H&r block advantage Private communication service, Private communication service. H&r block advantage Teletypewriter exchange service, Teletypewriter exchange service. H&r block advantage Credit card purchases Aviation gasoline, Credit card purchases. H&r block advantage Gasoline, Credit card purchases. H&r block advantage Kerosene for use in aviation, Credit card purchases. H&r block advantage Undyed diesel fuel, Credit Card Purchases. H&r block advantage Undyed kerosene, Credit Card Purchases. H&r block advantage Credit or refund Gas guzzler tax, Credit or refund. H&r block advantage Manufacturers taxes, Credits or Refunds Resale of tax-paid semitrailers, Tax on resale of tax-paid trailers and semitrailers. H&r block advantage Retail tax, Credits or refunds. H&r block advantage Tire tax, Credit or refund. H&r block advantage Vaccines, Credit or refund. H&r block advantage Credits, Claiming a Credit on Form 4136 D Deposits Net tax liability, Amount of Deposits Deposits, How to make, How To Make Deposits Diesel fuel Definitions, Diesel Fuel and Kerosene Exported, Diesel Fuel and Kerosene Diesel-water fuel emulsion, defined, Diesel-water fuel emulsion. H&r block advantage Dyed diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Dyed kerosene, Dyed Diesel Fuel and Dyed Kerosene E Electric outboard motors, Electric outboard boat motors. H&r block advantage Enterer, defined, Enterer. H&r block advantage Entry, defined, Entry. H&r block advantage Environmental taxes Credit or refund, Credits or refunds. H&r block advantage Exceptions, Exceptions. H&r block advantage Ozone-depleting chemicals (ODCs), Environmental Taxes United States (defined), Environmental Taxes Examination procedures, Examination and Appeal Procedures Excluded liquid, Diesel Fuel and Kerosene Exempt articles, retail tax, Articles exempt from tax. H&r block advantage Exempt communication services American Red Cross, International organizations and the American Red Cross. H&r block advantage Answering service, Answering services. H&r block advantage Coin-operated telephones, Coin-operated telephones. H&r block advantage Installation charges, Installation charges. H&r block advantage International organizations, International organizations and the American Red Cross. H&r block advantage Mobile radio telephone service, Mobile radio telephone service. H&r block advantage News services, News services. H&r block advantage Nonprofit educational organizations, Nonprofit educational organizations. H&r block advantage Nonprofit hospitals, Nonprofit hospitals. H&r block advantage Private communication service, Private communication service. H&r block advantage Qualified blood collector organizations, Qualified blood collector organizations. H&r block advantage Radio broadcasts, News services. H&r block advantage Security systems, Telephone-operated security systems. H&r block advantage Exempt sales, heavy trucks, Sales exempt from tax. H&r block advantage Exemptions Air transportation taxes, Exemptions. H&r block advantage Bonus tickets, Bonus tickets. H&r block advantage Coal, Exemption from tax. H&r block advantage Communications taxes, Exemptions Federal government, Federal, state, and local government. H&r block advantage Fixed-wing aircraft, Fixed-wing aircraft uses. H&r block advantage For export, Exemptions Further manufacturing, Exemptions Helicopters, Certain helicopter uses. H&r block advantage Indian handicrafts, Exemptions Indian tribal governments, Federal, state, and local government. H&r block advantage Military personnel, Military personnel on international trips. H&r block advantage Nonprofit educational organizations, Federal, state, and local government. H&r block advantage , Exemptions Qualified blood collector organizations, Exemptions State and local governments, Federal, state, and local government. H&r block advantage , Exemptions Taxable tires, Tires exempt from tax. H&r block advantage Vessel supplies, Exemptions Export, Export (No. H&r block advantage 3). H&r block advantage Exported taxable fuel, Exported taxable fuel. H&r block advantage F Farming, On a farm for farming purposes (No. H&r block advantage 1). H&r block advantage Federal government, Federal, state, and local government. H&r block advantage Fishing, In a boat engaged in commercial fishing (No. H&r block advantage 4). H&r block advantage Fishing rods and fishing poles. H&r block advantage , Fishing rods and fishing poles. H&r block advantage Fishing tackle boxes, Fishing tackle boxes. H&r block advantage Fixed-wing aircraft, Fixed-wing aircraft uses. H&r block advantage Floor stocks tax Ozone-depleting chemicals, Floor Stocks Tax Floor stocks, ODCs, Environmental Taxes Foreign trade, In foreign trade (No. H&r block advantage 9). H&r block advantage Form 1363, Exportation. H&r block advantage 4136, Claiming a Credit on Form 4136 6197, Gas Guzzler Tax, Form 6197. H&r block advantage , Attachments to Form 720. H&r block advantage 637, Reminders 6627, Environmental Taxes, Attachments to Form 720. H&r block advantage 720, Claiming A Refund, Form 6197. H&r block advantage , Filing Form 720 720X, Form 720X. H&r block advantage 8849, Claiming A Refund 8864, Biodiesel Sold as But Not Used as Fuel Form 720 Attachments, Attachments to Form 720. H&r block advantage Due dates, Due dates. H&r block advantage Final return, Final return. H&r block advantage Schedule A, Filing Form 720 Schedule C, Filing Form 720 Schedule T, Filing Form 720 Free tax services, How To Get Tax Help Fuels Alternative fuel, Other Fuels (Including Alternative Fuels) Diesel, Diesel Fuel and Kerosene Diesel-water fuel emulsion, Diesel-Water Fuel Emulsion For use in aviation, Kerosene for Use in Aviation Gasoline, Gasoline and Aviation Gasoline Kerosene, Diesel Fuel and Kerosene Other Fuels, Other Fuels (Including Alternative Fuels) Used on inland waterways, Fuels Used on Inland Waterways G Gambling, Taxable situations. H&r block advantage Gas guzzler tax Automobiles, Automobiles. H&r block advantage Credit or refund, Credit or refund. H&r block advantage Limousines, Automobiles. H&r block advantage Vehicles not subject to tax, Vehicles not subject to tax. H&r block advantage Gasoline blendstocks, Gasoline Blendstocks Gasoline, defined, Gasoline. H&r block advantage H Hawaii, air transportation taxes, Transportation between the continental U. H&r block advantage S. H&r block advantage and Alaska or Hawaii. H&r block advantage Heavy Motor Vehicle User Fee, Excise Taxes Not Covered Heavy trucks First retail sale, defined, First retail sale defined. H&r block advantage Further manufacture, Further manufacture. H&r block advantage Installment sales, Installment sales. H&r block advantage Parts or accessories, Parts or accessories. H&r block advantage Presumptive retail sales price, Presumptive retail sales price. H&r block advantage Related persons, Related person. H&r block advantage Separate purchases, Separate purchase. H&r block advantage Tax base, Determination of tax base. H&r block advantage Tax rate, Retail Tax on Heavy Trucks, Trailers, and Tractors Helicopter, Certain helicopter uses. H&r block advantage Help (see Tax help) Highway vehicle, Highway vehicle. H&r block advantage , In a highway vehicle owned by the United States that is not used on a highway (No. H&r block advantage 12). H&r block advantage Highway vehicle (Diesel-powered), Diesel-powered highway vehicle. H&r block advantage I Identifying number, Taxpayer identification number. H&r block advantage Imported taxable products (ODCs), Imported Taxable Products Income, include in, Including the Credit or Refund in Income Indoor tanning services, Indoor Tanning Services Tax Information returns, liquid products, Information Returns Inland waterways, Fuels Used on Inland Waterways Intercity and local buses, In certain intercity and local buses (No. H&r block advantage 5). H&r block advantage Interest and penalties, Penalties and Interest International air travel facilities, International Air Travel Facilities K Kerosene Definitions, Diesel Fuel and Kerosene Exported, Diesel Fuel and Kerosene For use in aviation, Kerosene for Use in Aviation L Liquid products, information returns, Information Returns Local telephone service, Local telephone service. H&r block advantage Local-only service, Local-only service. H&r block advantage M Manufacturer, defined, Manufacturer. H&r block advantage Manufacturers taxes Arrow shafts, Arrow Shafts Bows, Quivers, Broadheads, and Points, Bows, Quivers, Broadheads, and Points Coal, Coal Credits or refunds, Credits or Refunds Exemptions, Exemptions Gas guzzler tax, Gas Guzzler Tax Lease, Lease considered sale. H&r block advantage Lease payments, Partial payments. H&r block advantage Partial payments, Partial payments. H&r block advantage Registration, Registration requirements. H&r block advantage Related person, Related person. H&r block advantage Requirements for exempt sales, Requirements for Exempt Sales Sale, Sale. H&r block advantage Sport fishing equipment, Sport Fishing Equipment Taxable Tires, Taxable Tires Vaccines, Vaccines Medical device tax, Taxable medical devices. H&r block advantage Military aircraft, In military aircraft (No. H&r block advantage 16). H&r block advantage Mobile radio telephone service, Mobile radio telephone service. H&r block advantage N News services, News services. H&r block advantage Nonprofit educational organization, Exclusive use by a nonprofit educational organization (No. H&r block advantage 13). H&r block advantage Nonprofit educational organization use and state use, Nonprofit educational organization and state use. H&r block advantage Nonprofit educational organizations, Nonprofit educational organizations. H&r block advantage , Federal, state, and local government. H&r block advantage Nontaxable uses, definitions, Definitions of Nontaxable Uses Nontaxable uses, type of use table, Definitions of Nontaxable Uses O Obligations not in registered form, Obligations Not in Registered Form Off-highway use, Off-highway business use (No. H&r block advantage 2). H&r block advantage Oil spill liability, Environmental Taxes Other Fuels (Including Alternative Fuels), Other Fuels (Including Alternative Fuels) Other fuels, defined, Other fuels. H&r block advantage Ozone-depleting chemicals Floor stocks tax, Floor Stocks Tax Imported taxable products, Imported Taxable Products P Patient-centered outcomes research fee, Patient-Centered Outcomes Research Fee Payment of taxes, Payment of Taxes Penalties Dyed diesel fuel, Penalty. H&r block advantage Dyed kerosene, Penalty. H&r block advantage Pipeline operator, defined, Pipeline operator. H&r block advantage Position holder, defined, Position holder. H&r block advantage Publications (see Tax help) Q Qualified local bus, In a qualified local bus (No. H&r block advantage 6). H&r block advantage R Rack, defined, Rack. H&r block advantage Radio broadcasts, News services. H&r block advantage Records, Refiner, defined, Refiner. H&r block advantage Refinery, defined, Refinery. H&r block advantage Refunds, Claiming A Refund Refunds of second tax, Refunds of Second Tax Registered ultimate vendor, Sales by Registered Ultimate Vendors, Registered ultimate vendor. H&r block advantage Registrant, Taxable fuel registrant. H&r block advantage Registrant, defined, Registrant. H&r block advantage Registration, Registration Requirements Form 637, Reminders Registration-required obligations, Obligations Not in Registered Form Related persons Heavy trucks, Related person. H&r block advantage Sport fishing equipment, Related person. H&r block advantage Removal, defined, Removal. H&r block advantage Retail tax Credits or refunds, Credits or refunds. H&r block advantage Heavy trucks, Retail Tax on Heavy Trucks, Trailers, and Tractors Rulings Program, Rulings Program Rural airports, Rural airports. H&r block advantage S Sale, defined, Sale. H&r block advantage Sales by registered ultimate vendors, gasoline, Sales by registered ultimate vendors. H&r block advantage Sales by registered ultimate vendors, kerosene for use in aviation, Sales by Registered Ultimate Vendors Sales price Bonus goods, Bonus goods. H&r block advantage Cost of transportation, Manufacturers taxes based on sale price. H&r block advantage Delivery costs, Manufacturers taxes based on sale price. H&r block advantage Discounts, Manufacturers taxes based on sale price. H&r block advantage Installation costs, Manufacturers taxes based on sale price. H&r block advantage Insurance costs, Manufacturers taxes based on sale price. H&r block advantage Local advertising charges, Manufacturers taxes based on sale price. H&r block advantage Manufacturers excise tax, Manufacturers taxes based on sale price. H&r block advantage Rebates, Manufacturers taxes based on sale price. H&r block advantage Retail dealer preparation costs, Manufacturers taxes based on sale price. H&r block advantage Warranty charges, Manufacturers taxes based on sale price. H&r block advantage School bus, In a school bus (No. H&r block advantage 7). H&r block advantage Second generation biofuel, Second generation biofuel. H&r block advantage Security systems, Telephone-operated security systems. H&r block advantage Ship passenger tax, Ship Passenger Tax Special September rule, When to deposit, Special rule for deposits of taxes in September. H&r block advantage Sport fishing equipment List of equipment, Sport Fishing Equipment Resales, Certain equipment resale. H&r block advantage State and local governments, Federal, state, and local government. H&r block advantage State or local governments, Exclusive use by a state, political subdivision of a state, or the District of Columbia (No. H&r block advantage 14). H&r block advantage State or nonprofit educational organization use, Sales by registered ultimate vendors. H&r block advantage State use, Registered ultimate vendor (state use). H&r block advantage , State use. H&r block advantage State, defined, State. H&r block advantage Suggestions, Comments and suggestions. H&r block advantage T Tanning tax, Indoor Tanning Services Tax Tax help, How To Get Tax Help Tax rate, Electric outboard boat motors. H&r block advantage Air transportation of persons, Transportation of Persons by Air Air transportation of property, Transportation of Property by Air Arrow shafts, Arrow Shafts Bows, Quivers, Broadheads, and Points, Bows, Quivers, Broadheads, and Points Coal, Tax rates. H&r block advantage Electric outboard motor, Electric outboard boat motors. H&r block advantage International air travel facilities, International Air Travel Facilities Obligations not in registered form, Obligations Not in Registered Form Policies issued by foreign persons, Foreign Insurance Taxes Ship passenger tax, Ship Passenger Tax Sport fishing equipment, Sport Fishing Equipment Trucks, Retail Tax on Heavy Trucks, Trailers, and Tractors Taxable fuel registrant, Taxable fuel registrant. H&r block advantage Taxable Tires Manufacturers taxes, Taxable Tires Taxable tires Exemptions, Tires exempt from tax. H&r block advantage Taxes, Payment of, Payment of Taxes Taxpayer identification number, Taxpayer identification number. H&r block advantage Teletypewriter exchange service, Teletypewriter exchange service. H&r block advantage Terminal operator, defined, Terminal operator. H&r block advantage Terminal, defined, Terminal. H&r block advantage Throughputter, defined, Throughputter. H&r block advantage Tires Credit against heavy truck tax, Tire credit. H&r block advantage Credit or refund of tax, Credit or refund. H&r block advantage Train, Use in a train. H&r block advantage Train (Diesel-powered), Diesel-powered train. H&r block advantage Transmix, Diesel Fuel and Kerosene Travel agency, Liability for tax. H&r block advantage TTY/TDD information, How To Get Tax Help Two-party exchanges, Two-party exchanges. H&r block advantage , Two-party exchanges. H&r block advantage U Ultimate purchaser, Ultimate purchaser. H&r block advantage Uninterrupted international air transportation, Uninterrupted international air transportation. H&r block advantage , Military personnel on international trips. H&r block advantage Used other than as a fuel Diesel fuel and kerosene, For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel (No. H&r block advantage 8). H&r block advantage Uses, nontaxable Alternative fuels, Other Fuels (Including Alternative Fuels) Aviation gasoline, Gasoline and Aviation Gasoline Diesel fuel, Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) Diesel-water fuel emulsion, Diesel-Water Fuel Emulsion Gasoline, Gasoline and Aviation Gasoline Kerosene, Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) Kerosene for use in aviation, Ultimate purchasers. H&r block advantage Liquefied petroleum gas (LPG), Other Fuels (Including Alternative Fuels) Other Fuels, Other Fuels (Including Alternative Fuels) V Vaccines Credit or refund, Credit or refund. H&r block advantage Manufacturers tax, What's New, Vaccines Vehicles Gas guzzler, Gas Guzzler Tax Imported, Imported automobiles. H&r block advantage Law enforcement, Vehicles not subject to tax. H&r block advantage Vendors, registered ultimate, Sales by Registered Ultimate Vendors, Registered ultimate vendor. H&r block advantage Vessel operator, defined, Vessel operator. H&r block advantage W Wagering and occupational wagering fee, Excise Taxes Not Covered When to deposit, When To Make Deposits Prev  Up     Home   More Online Publications
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"Slamming" occurs when a phone company illegally switches your phone service without your permission. If you notice a different company name on your bill or see phone charges that are higher than normal, take action:

  • Contact the company that slammed you and ask to be switched back to your original company. Tell the company you are exercising your right to refuse to pay any charges.
  • Report the problem to your original company and ask to be enrolled in your previous calling plan. If you're unable to resolve your complaint, contact the FCC.

"Cramming" occurs when companies add charges to your telephone bill without your permission. These charges may be for services such as voice mail, ringtones, or club memberships. You may not notice these monthly charges because they are relatively small, $5 to $30, and look like your regular phone charges.

Take These Steps to Avoid Slammers and Crammers:

  • Block changes to your phone service. Ask your telephone service provider if they offer a blocking service, which usually requires the company to notify you before making any changes to your service.
  • Read the fine print on contest entry forms and coupons. You could be agreeing to switch your phone service or buy optional services.
  • Watch out for impostors. Companies could falsely claim to be your regular phone company and offer some type of discount plan or change in billing. They might also say they are taking a survey or pretend to be a government agency.
  • Beware of "negative option notices". You can be switched or signed up for optional services unless you say "NO" to telemarketers.
  • Examine your telephone bill carefully, including pages that show the details, and look for suspicious charges.

Your phone service cannot be shut off for refusal to pay for unauthorized services. For help, contact your local or state consumer protection agency, state public utilities commission, or the FCC.

Beware: Caller ID Spoofing

Scammers have adopted the practice of Caller ID spoofing to obtain personal information from consumers. In this fraud, someone calls you using a false name and phone number for the Caller ID screen. During the call, the scammer describes an urgent scenario, such as the cancellation of an account. The caller may say you can avoid the cancellation if you provide your bank account or credit card number to pay the company. If you give the sensitive information, he can use it to steal your identity, or use your bank accounts.
You can prevent being a victim of caller ID spoofing. Don’t give out personal information on an incoming call. Hang up and call the customer service phone number printed on your statement, the company’s website or in the phonebook.
Report caller ID spoofers to the Federal Communications Commission online or 1-888-225-5322.

Beware: GPS Enabled Apps on Your Mobile Phone

GPS enabled apps on mobile phones make it easy to share your fun adventures through social media. Some apps let others know your general vicinity, while others allow you to virtually “check in” at your favorite places so that you can earn free merchandise. Beware: this same information in the wrong hands can make you vulnerable to stalking, home burglary, or worse. Take advantage of the privacy settings on these apps and only share your location with people that you know and trust.

The H&r Block Advantage

H&r block advantage 2. H&r block advantage   Filing Requirements and Required Disclosures Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Annual Information ReturnsSupporting Organization Annual Information Return Unrelated Business Income Tax ReturnEstimated tax. H&r block advantage Employment Tax ReturnsException. H&r block advantage FUTA tax exception. H&r block advantage FICA tax exemption election. H&r block advantage Revoking the election. H&r block advantage Definitions. H&r block advantage Effect on employees. H&r block advantage Political Organization Income Tax ReturnExempt function. H&r block advantage Political organization taxable income. H&r block advantage Separate fund. H&r block advantage Failure to file. H&r block advantage Failure to pay on time. H&r block advantage Reporting Requirements for a Political OrganizationForm 8871 Form 8872 Donee Information ReturnCharitable deduction property. H&r block advantage Publicly traded securities. H&r block advantage Exceptions. H&r block advantage Form 8283. H&r block advantage Information Provided to DonorsDisclosure of Quid Pro Quo Contributions Acknowledgment of Charitable Contributions of $250 or More Acknowledgment of Vehicle Contribution Qualified Intellectual Property Report of Cash Received Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting FormsAnnual Information Return Public Inspection of Exemption Application Political Organization Reporting Forms Required DisclosuresSolicitation of Nondeductible Contributions Sales of Information or Services Available Free From Government Dues Used for Lobbying or Political Activities Prohibited Tax Shelter Transactions Miscellaneous RulesOrganizational Changes and Exempt Status Introduction Most exempt organizations (including private foundations) must file various returns and reports at some time during (or following the close of) their accounting period. H&r block advantage Topics - This chapter discusses: Annual information returns Unrelated business income tax return Employment tax returns Political organization income tax return Reporting requirements for a political organization Donee information return Information provided to donors Report of cash received Public inspection of exemption applications, annual returns, and political organizations reporting forms Required disclosures Miscellaneous rules Useful Items - You may want to see: Publication 15 Circular E, Employer's Tax Guide 15-A Employer's Supplemental Tax Guide 15-B Employer's Tax Guide to Fringe Benefits 598 Tax on Unrelated Business Income of Exempt Organizations Form (and Instructions) 941 Employer's Quarterly Federal Tax Return 990 Return of Organization Exempt From Income Tax 990-EZ Short Form Return of Organization Exempt From Income Tax Schedule A (Form 990 or 990-EZ) Public Charity Status and Public Support Schedule B (Form 990, 990-EZ, or 990-PF) Schedule of Contributors Schedule C (Form 990 or 990-EZ) Political Campaign and Lobbying Activities Schedule D (Form 990) Supplemental Financial Statements Schedule E (Form 990 or 990-EZ) Schools Schedule F (Form 990) Statement of Activities Outside the United States Schedule G (Form 990 or 990-EZ) Supplemental Information Regarding Fundraising or Gaming Activities Schedule H (Form 990) Hospitals Schedule I (Form 990) Grants and Other Assistance to Organizations, Governments, and Individuals in the United States Schedule J (Form 990) Compensation Information Schedule K (Form 990) Supplemental Information on Tax-Exempt Bonds Schedule L (Form 990 or 990-EZ) Transactions With Interested Persons Schedule M (Form 990) Noncash Contributions Schedule N (Form 990 or 990-EZ) Liquidation, Termination, Dissolution, or Significant Disposition of Assets Schedule O (Form 990 or 990-EZ) Supplemental Information to Form 990 Schedule R (Form 990) Related Organizations and Unrelated Partnerships 990-PF Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation 990-BL Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons 990-T Exempt Organization Business Income Tax Return 990-W Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations 1120-POL U. H&r block advantage S. H&r block advantage Income Tax Return for Certain Political Organizations 4720 Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code 5768 Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation 6069 Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust Under Section 4953 and Computation of Section 192 Deduction 7004 Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns 8274 Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption from Employer Social Security and Medicare Taxes 8282 Donee Information Return 8300 Report of Cash Payments Over $10,000 Received in a Trade or Business 8453-X Political Organization Declaration for Electronic Filing of Notice of Section 527 Status 8822-B Change of Address-Business 8868 Application for Extension of Time to File an Exempt Organization Return 8870 Information Return for Transfers Associated with Certain Personal Benefits Contracts 8871 Political Organization Notice of Section 527 Status 8872 Political Organization Report of Contributions and Expenditures 8886-T Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction 8899 Notice of Income from Donated Intellectual Property 8940 Request for Miscellaneous Determination See chapter 6 for information about getting these publications and forms. H&r block advantage Annual Information Returns Every organization exempt from federal income tax under section 501(a) must file an Annual Exempt Organization Return except: A church, an interchurch organization of local units of a church, a convention or association of churches, An integrated auxiliary of a church, A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs, A school below college level affiliated with a church or operated by a religious order, Church-affiliated mission societies if more than half of their activities are conducted in, or are directed at persons in, foreign countries, An exclusively religious activity of any religious order, A state institution, the income of which is excluded from gross income under section 115, A corporation described in section 501(c)(1) that is organized under an Act of Congress, an instrumentality of the United States, and is exempt from Federal income taxes, A stock bonus, pension, or profit-sharing trust that qualifies under section 401 (required to file Form 5500, Annual Return/Report of Employee Benefit Plan), A religious or apostolic organization described in section 501(d) (required to file Form 1065, U. H&r block advantage S. H&r block advantage Return of Partnership Income), A governmental unit or an affiliate of a governmental unit that meets the requirements of Revenue Procedure 95-48, 1995-2 C. H&r block advantage B. H&r block advantage 418, www. H&r block advantage irs. H&r block advantage gov/pub/irs-tege/rp1995-48. H&r block advantage pdf, A private foundation described in section 501(c)(3) and exempt under section 501(a) (required to file Form 990-PF, Return of Private Foundation), A political organization that is a state or local committee of a political party, a political committee of a state or local candidate, a caucus or association of state or local officials, or required to report under the Federal Election Campaign Act of 1971 as a political committee, An exempt organization (other than a private foundation) that normally has annual gross receipts of $50,000 or less, or A foreign organization, or an organization located in a U. H&r block advantage S. H&r block advantage possession, that normally has annual gross receipts from sources within the United States of $50,000 or less. H&r block advantage Supporting Organization Annual Information Return For tax years ending after August 17, 2006, all section 509(a)(3) supporting organizations are required to file Form 990 or 990-EZ with the IRS regardless of the organization's gross receipts, unless it qualifies as one of the following: An integrated auxiliary of a church; The exclusively religious activities of a religious order; or An organization, the gross receipts of which are normally not more than $5,000, that supports a section 509(a)(3) religious order. H&r block advantage If the organization is described in item (3) above, then it must submit Form 990-N (e-Postcard) unless it voluntarily files Form 990 or 990-EZ. H&r block advantage On its annual information return, at Part I, Schedule A (Form 990 or 990-EZ) a supporting organization must: List the section 509(a)(3) organizations to which it provides support, Indicate whether it is a Type I, Type II, or Type III supporting organization, and Certify that the organization is not controlled directly or indirectly by disqualified persons (other than by foundation managers and other than one or more publicly supported organizations). H&r block advantage Annual Electronic Filing Requirement for Small Tax-Exempt Organizations Small tax-exempt organizations with annual gross receipts normally $50,000 or less must submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, with the IRS each year, if they choose not to file a Form 990 or 990-EZ. H&r block advantage Form 990-N requires the following information: The organization's legal name, and mailing address; Any name under which it operates and does business; Its Internet website address (if any); Its taxpayer identification number; The name and address of a principal officer; Organization's annual tax period; Verification that the organization's annual gross receipts are normally $50,000 or less; and Notification if the organization has terminated. H&r block advantage Form 990-N is due by the 15th day of the fifth month after the close of the tax year. H&r block advantage For tax years beginning after December 31, 2006, any organization that fails to meet its annual reporting requirement for 3 consecutive years will automatically lose its tax-exempt status. H&r block advantage To regain its exempt status an organization will have to reapply for recognition as a tax-exempt organization. H&r block advantage Exceptions. H&r block advantage   This filing requirement does not apply to: Churches, their integrated auxiliaries, and conventions or associations of churches; Organizations that are included in a group return; Private foundations required to file Form 990-PF; and Section 509(a)(3) supporting organizations required to file Form 990 or Form 990-EZ. H&r block advantage Forms 990 and 990-EZ Exempt organizations, other than private foundations, must file their annual information returns on Form 990 or 990-EZ, unless excepted from filing or allowed to submit Form 990-N, described earlier. H&r block advantage Generally, political organizations with gross receipts of $25,000 ($100,000 for a qualified state or local political organization (QSLPO)) or more for the tax year are required to file Form 990 or 990-EZ unless specifically excepted from filing the annual return. H&r block advantage The following political organizations are not required to file Form 990 or Form 990-EZ. H&r block advantage A state or local committee of a political party. H&r block advantage A political committee of a state or local candidate. H&r block advantage A caucus or association of state or local officials. H&r block advantage A political organization that is required to report as a political committee under the Federal Election Campaign Act. H&r block advantage A 501(c) organization that has expenditures for influencing or attempting to influence the selection, nomination, election, or appointment of any individual for a federal, state, or local public office. H&r block advantage Form 990-EZ. H&r block advantage   This is a shortened version of Form 990. H&r block advantage It is designed for use by small exempt organizations and nonexempt charitable trusts. H&r block advantage   Beginning in tax year 2010, an organization can file either Form 990 or 990-EZ if it meets the following: Its gross receipts during the year are less than $200,000. H&r block advantage Its total assets (line 25, column (B) of Form 990-EZ) at the end of the year are less than $500,000. H&r block advantage If your organization does not meet either of these conditions, you cannot file Form 990-EZ. H&r block advantage Instead you must file Form 990. H&r block advantage Group return. H&r block advantage   A group return on Form 990 may be filed by a central, parent, or like organization for two or more local organizations, none of which is a private foundation. H&r block advantage This return is in addition to the central organization's separate annual return if it must file a return. H&r block advantage It cannot be included in the group return. H&r block advantage See the instructions for Form 990 for the conditions under which this procedure may be used. H&r block advantage    In any year that an organization is properly included as a subordinate organization on a group return, it should not file its own Form 990. H&r block advantage Schedule A (Form 990 or 990-EZ). H&r block advantage   Organizations, other than private foundations, that are described in section 501(c)(3) and that are otherwise required to file Form 990 or 990-EZ must also complete Schedule A of that form. H&r block advantage Schedule B (Form 990, Form 990-EZ, or 990-PF). H&r block advantage   Organizations that file Form 990 or 990-EZ use this schedule to provide required information regarding their contributors. H&r block advantage Schedule O (Form 990). H&r block advantage   Organizations that file Form 990 must use this schedule to provide required additional information or if additional space is needed. H&r block advantage   Other schedules may be required to be filed with Form 990 or 990-EZ. H&r block advantage See the instructions for Form 990 or the instructions for Form 990-EZ for more information. H&r block advantage Report significant new or changed program services and changes to organizational documents. H&r block advantage    An organization should report new significant program services or significant changes in how it conducts program services, and significant changes to its organizational documents, on its Form 990 rather than in a letter to EO Determinations. H&r block advantage EO Determinations no longer issues letters confirming the tax-exempt status of organizations that report new services or significant changes, or changes to organizational documents. H&r block advantage See Miscellaneous Rules, Organization Changes and Exempt Status, later. H&r block advantage Form 990-PF All private foundations exempt under section 501(c)(3) must file Form 990-PF. H&r block advantage These organizations are discussed in chapter 3. H&r block advantage Electronic Filing You may be required to file Form 990, Form 990-EZ, or Form 990-PF, and related forms, schedules, and attachments electronically. H&r block advantage If an organization is required to file a return electronically but does not, the organization is considered to have not filed its return. H&r block advantage See Regulations section 301. H&r block advantage 6033-4 for more information. H&r block advantage The IRS may waive the requirement to file electronically in cases of undue hardship. H&r block advantage For information on filing a waiver, see Notice 2010-13, 2010-4 I. H&r block advantage R. H&r block advantage B. H&r block advantage 327, available at www. H&r block advantage irs. H&r block advantage gov/ir/2010-04_IRSB/ar14. H&r block advantage html. H&r block advantage Form 990. H&r block advantage   An organization is required to file Form 990 electronically if it files at least 250 returns during the calendar year and has total assets of $10 million or more at the end of the tax year. H&r block advantage Form 990-PF. H&r block advantage   An organization is required to file Form 990-PF electronically if it files at least 250 returns during the calendar year. H&r block advantage Due Date Forms 990, 990-EZ, or 990-PF must be filed by the 15th day of the fifth month after the end of your organization's accounting period. H&r block advantage Thus, for a calendar year taxpayer, Forms 990, 990-EZ, or 990-PF is due May 15 of the following year. H&r block advantage Extension of time to file. H&r block advantage   Use Form 8868 to request an automatic 3-month extension of time to file Forms 990, 990-EZ, or 990-PF and also to apply for an additional (not automatic) 3-month extension if needed. H&r block advantage   Do not apply for both the automatic 3-month extension and the additional 3-month extension at the same time. H&r block advantage For more information, see Form 8868 and its instructions. H&r block advantage   When filing Form 8868 for an automatic 3-month extension, neither a signature, nor an explanation is required. H&r block advantage However, when filing Form 8868 for an additional 3-month extension, both a signature and an explanation are required. H&r block advantage Application for exemption pending. H&r block advantage   An organization that claims to be exempt under section 501(a) but has not established its exempt status by the due date for filing an information return must complete and file Form 990, 990-EZ, 990–N or 990-PF (if it considers itself a private foundation), unless the organization is exempt from Form 990-series filing requirements. H&r block advantage If the organization's application is pending with the IRS, it must so indicate on Forms 990, 990-EZ, or 990-PF (whichever applies) by checking the application pending block at the top of page 1 of the return. H&r block advantage For more information on the filing requirements, see the Instructions for Forms 990, 990-EZ, and 990-PF. H&r block advantage State reporting requirements. H&r block advantage   Copies of Forms 990, 990-EZ, or 990-PF may be used to satisfy state reporting requirements. H&r block advantage See the instructions for those forms. H&r block advantage Form 8870. H&r block advantage   Organizations that filed a Form 990, 990-EZ, or 990-PF, and paid premiums or received transfers on certain life insurance, annuity, and endowment contracts (personal benefit contracts), must file Form 8870. H&r block advantage For more information, see Form 8870 and the instructions for that form. H&r block advantage Automatic Revocation If the organization fails to file a Form 990, 990-EZ, or 990-PF, or fails to submit a Form 990-N, as required, for 3 consecutive years, it will automatically lose its tax-exempt status by operation of law. H&r block advantage The list of organizations whose tax-exempt status has been automatically revoked is available on IRS. H&r block advantage gov. H&r block advantage This list (Auto-Revocation List) may be viewed and searched on Exempt Organizations Select Check. H&r block advantage The Auto-Revocation List includes each organization's name, Employer Identification Number (EIN) and last known address. H&r block advantage It also includes the effective date of the automatic revocation and the date it was posted to the list. H&r block advantage The IRS updates the list monthly to include additional organizations that lose their tax-exempt status. H&r block advantage Tax Effect of Loss of Tax-Exempt Status If your organization’s tax-exempt status is automatically revoked, you may be required to file one of the following federal income tax returns and pay any applicable income taxes: Form 1120, U. H&r block advantage S. H&r block advantage Corporation Income Tax Return, due by the 15th day of the 3rd month after the end of your organization’s tax year, or Form 1041, U. H&r block advantage S. H&r block advantage Income Tax Return for Estates and Trusts, due by the 15th day of the 4th month after the end of your organization’s tax year. H&r block advantage In addition, a section 501(c)(3) organization that loses its tax-exempt status cannot receive tax-deductible contributions and will not be identified in the IRS Business Master File extract as eligible to received tax-deductible contributions, or be included in Exempt Organizations Select Check (Pub 78 database). H&r block advantage An organization whose exemption was automatically revoked must apply for tax exemption in order to regain its tax exemption (even if it was not originally required to apply). H&r block advantage In some situations, an organization may be able to obtain exemption retroactive to its date of revocation. H&r block advantage For more information about automatic revocation, go to IRS. H&r block advantage gov and select Charities & Non-Profits and then select Revoked? Reinstated? Learn More. H&r block advantage Penalties Penalties for failure to file. H&r block advantage   Generally, an exempt organization that fails to file a required return must pay a penalty of $20 a day for each day the failure continues. H&r block advantage The same penalty will apply if the organization does not give all the information required on the return or does not give the correct information. H&r block advantage Maximum penalty. H&r block advantage   The maximum penalty for any one return is the smaller of $10,000 or 5% of the organization's gross receipts for the year. H&r block advantage Organization with gross receipts over $1 million. H&r block advantage   For an organization that has gross receipts of over $1 million for the year, the penalty is $100 a day up to a maximum of $50,000. H&r block advantage Managers. H&r block advantage   If the organization is subject to this penalty, the IRS may specify a date by which the return or correct information must be supplied by the organization. H&r block advantage Failure to comply with this demand will result in a penalty imposed upon the manager of the organization, or upon any other person responsible for filing a correct return. H&r block advantage The penalty is $10 a day for each day that a return is not filed after the period given for filing. H&r block advantage The maximum penalty imposed on all persons with respect to any one return is $5,000. H&r block advantage Exception for reasonable cause. H&r block advantage   No penalty will be imposed if reasonable cause for failure to file timely can be shown. H&r block advantage Unrelated Business Income Tax Return Even though your organization is recognized as tax exempt, it still may be liable for tax on its unrelated business income. H&r block advantage Unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis for the organization's exemption. H&r block advantage If your organization has $1,000 or more of unrelated business income, you must file Form 990-T in addition to your required annual information return. H&r block advantage Estimated tax. H&r block advantage   Quarterly estimated tax payments are due if your organization expects to owe $500 or more in tax including unrelated business income. H&r block advantage Use Form 990-W to figure your organization's estimated tax payments. H&r block advantage Travel tour programs. H&r block advantage   Travel tour activities that are a trade or business are an unrelated trade or business if the activities are not substantially related to the purpose to which tax exemption was granted to the organization. H&r block advantage   Whether travel tour activities conducted by an organization are substantially related to the organization's tax exempt purpose is determined by looking at all the relevant facts and circumstances, including, but not limited to, how a travel tour is developed, promoted, and operated. H&r block advantage Example. H&r block advantage ABC, a university alumni association, is tax exempt as an educational organization under section 501(c)(3). H&r block advantage As part of its activities, ABC operates a travel tour program. H&r block advantage The program is open to all current members of ABC and their guests. H&r block advantage ABC works with travel agents to schedule approximately ten tours annually to various destinations around the world. H&r block advantage Members of ABC pay $1,000 to XYZ Travel Agency to participate in a tour. H&r block advantage XYZ pays ABC a per person fee for each participant. H&r block advantage Although the literature advertising the tours encourages ABC members to continue their lifelong learning by joining the tours, and a faculty member of ABC's related university frequently joins the tour as a guest of the alumni association, none of the tours include any scheduled instruction or curriculum related to the destinations being visited. H&r block advantage The travel tours made available to ABC's members do not contribute importantly to the accomplishment of ABC's educational purpose. H&r block advantage Rather, ABC's program is designed to generate revenues for ABC by regularly offering its members travel services. H&r block advantage Therefore, ABC's tour program is an unrelated trade or business. H&r block advantage For additional information on unrelated business income, see Publication 598 and the Instructions for Form 990-T. H&r block advantage Employment Tax Returns Every employer, including an organization exempt from federal income tax, who pays wages to employees is responsible for withholding, depositing, paying, and reporting federal income tax, social security and Medicare (FICA) taxes, and federal unemployment tax (FUTA), unless that employer is specifically excepted by law from those requirements, or if the taxes clearly do not apply. H&r block advantage For more information, obtain a copy of Publication 15, which summarizes the responsibilities of an employer, Publication 15-A, Publication 15-B, and Form 941. H&r block advantage Small Business Health Care Tax Credit. H&r block advantage   If your small tax-exempt organization provides health care coverage for your workers you may qualify for the small business health care tax credit. H&r block advantage Go to IRS. H&r block advantage gov and select Affordable Care Act Tax Provisions for more details. H&r block advantage See Small Business Health Care Tax Credit at www. H&r block advantage irs. H&r block advantage gov/newsroom/article/0,,id=223666,00. H&r block advantage html. H&r block advantage Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans. H&r block advantage   The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC). H&r block advantage The Act added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer's share of social security tax. H&r block advantage The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013. H&r block advantage This tax credit was extended through December 31, 2013, under the American Taxpayer Relief Act, passed on January 1, 2013. H&r block advantage   The credit can be as high as $6,240 for qualified tax-exempt organizations. H&r block advantage The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages. H&r block advantage The amount of the credit for qualified tax-exempt organizations may not exceed the organization's employer social security tax for the period for which the credit is claimed. H&r block advantage   All employers must obtain certification that an individual is a member of the targeted group, before the employer may claim the credit. H&r block advantage The process for certifying veterans for this credit is the same for all employers. H&r block advantage For more information, see Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit and the instructions to Form 8850. H&r block advantage Notice 2012-13, 2012-9 I. H&r block advantage R. H&r block advantage B. H&r block advantage 421, also provides additional guidance on submission Form 8850. H&r block advantage   Organizations described in section 501(c) and exempt from taxation under section 501(a) may claim the credit for qualified veterans who begin work on or after Nov. H&r block advantage 22, 2011, and before January 1, 2013. H&r block advantage After the required certification is secured, tax-exempt employers claim the credit against the employer social security tax by separately filing Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans, Form 5884-C. H&r block advantage File Form 5884-C after filing the related employment tax return for the employment tax period for which the credit is claimed. H&r block advantage It is recommended that qualified tax-exempt employers do not reduce their required deposits in anticipation of any credit as the forms are processed separately. H&r block advantage In addition to Form 5884-C and its instructions, tax-exempt employers should see Notice 2012-13 and the Frequently Asked Questions & Answers for more details for claiming the credit. H&r block advantage Trust fund recovery penalty. H&r block advantage   If any person required to collect, truthfully account for, and pay over any of these taxes willfully fails to satisfy any of these requirements or willfully tries in any way to evade or defeat any of them, that person will be subject to a penalty. H&r block advantage The penalty is equal to the tax evaded, not collected, or not accounted for and paid over. H&r block advantage The term person includes: An officer or employee of a corporation, or A member or employee of a partnership. H&r block advantage Exception. H&r block advantage   The penalty is not imposed on any unpaid volunteer director or member of a board of trustees of an exempt organization if the unpaid volunteer serves solely in an honorary capacity, does not participate in the day-to-day or financial operations of the organization, and does not have actual knowledge of the failure on which the penalty is imposed. H&r block advantage   This exception does not apply if it results in no one being liable for the penalty. H&r block advantage FICA and FUTA tax exceptions. H&r block advantage   Payments for services performed by a minister of a church in the exercise of the ministry, or a member of a religious order performing duties required by the order, are generally not subject to FICA or FUTA taxes. H&r block advantage FUTA tax exception. H&r block advantage   Payments for services performed by an employee of a religious, charitable, educational, or other organization described in section 501(c)(3) that are generally subject to FICA taxes if the payments are $100 or more for the year, are not subject to FUTA taxes. H&r block advantage FICA tax exemption election. H&r block advantage   Churches and qualified church-controlled organizations can elect exemption from employer FICA taxes by filing Form 8274. H&r block advantage   To elect the exemption, Form 8274 must be filed before the first date on which a quarterly employment tax return would otherwise be due from the electing organization. H&r block advantage The organization can make the election only if it is opposed for religious reasons to the payment of FICA taxes. H&r block advantage   The election applies to payments for services of current and future employees other than services performed in an unrelated trade or business. H&r block advantage Revoking the election. H&r block advantage   The election can be revoked by the IRS if the organization fails to file Form W-2, Wage and Tax Statement, for 2 years and fails to furnish certain information upon request by the IRS. H&r block advantage Such revocation will apply retroactively to the beginning of the 2-year period. H&r block advantage Definitions. H&r block advantage   For purposes of this election, the term church means a church, a convention or association of churches, or an elementary or secondary school that is controlled, operated, or principally supported by a church or by a convention or association of churches. H&r block advantage   The term qualified church-controlled organization means any church-controlled section 501(c)(3) tax-exempt organization, other than an organization that both: Offers goods, services, or facilities for sale, other than on an incidental basis, to the general public at other than a nominal charge that is substantially less than the cost of providing such goods, services, or facilities, and Normally receives more than 25% of its support from the sum of governmental sources and receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities, in activities that are not unrelated trades or businesses. H&r block advantage Effect on employees. H&r block advantage   If a church or qualified church-controlled organization has made an election, payment for services performed for that church or organization, other than in an unrelated trade or business, will not be subject to FICA taxes. H&r block advantage However, the employee, unless otherwise exempt, will be subject to self-employment tax on the income. H&r block advantage The tax applies to income of $108. H&r block advantage 28 or more for the tax year from that church or organization, and no deductions for trade or business expenses are allowed against this self-employment income. H&r block advantage   Schedule SE (Form 1040), Self-Employment Tax, should be attached to the employee's income tax return. H&r block advantage Political Organization Income Tax Return Generally, a political organization is treated as an organization exempt from tax. H&r block advantage Certain political organizations, however, must file an annual income tax return, Form 1120-POL, U. H&r block advantage S. H&r block advantage Income Tax Return for Certain Political Organizations, for any year they have political organization taxable income in excess of the $100 specific deduction allowed under section 527. H&r block advantage A political organization that has $25,000 ($100,000 for a qualified state or local political organization) or more in gross receipts for the tax year must file Form 990 or Form 990-EZ (and Schedule B of the form), unless excepted. H&r block advantage See Forms 990 and 990-EZ , earlier. H&r block advantage Political organization. H&r block advantage   A political organization is a party, committee, association, fund, or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function. H&r block advantage Exempt function. H&r block advantage   An exempt function means influencing or attempting to influence the selection, nomination, election, or appointment of any individual to any federal, state, local public office or office in a political organization, or the election of the Presidential or Vice Presidential electors, whether or not such individual or electors are selected, nominated, elected, or appointed. H&r block advantage It also includes certain office expenses of a holder of public office or an office in a political organization. H&r block advantage Certain political organizations are required to notify the IRS that they are section 527 organizations. H&r block advantage These organizations must use Form 8871. H&r block advantage Some of these section 527 organizations must use Form 8872 to file periodic reports with the IRS disclosing their contributions and expenditures. H&r block advantage For a discussion on these forms, see Reporting Requirements for a Political Organization, later. H&r block advantage Political organization taxable income. H&r block advantage   Political organization taxable income is the excess of: Gross income for the tax year (excluding exempt function income) minus Deductions directly connected with the earning of gross income. H&r block advantage To figure taxable income, allow for a $100 specific deduction, but do not allow for the net operating loss deduction, the dividends-received deduction, and other special deductions for corporations. H&r block advantage Exempt organization not a political organization. H&r block advantage   An organization exempt under section 501(c) that spends any amount for an exempt function must file Form 1120-POL for any year which it has political taxable income. H&r block advantage These organizations must include in gross income the lesser of: The total amount of its exempt function expenditures, or The organization's net investment income. H&r block advantage Separate fund. H&r block advantage   A section 501(c) organization can set up a separate segregated fund that will be treated as an independent political organization. H&r block advantage The earnings and expenditures made by the separate fund will not be attributed to the section 501(c) organization. H&r block advantage Section 501(c)(3) organizations are precluded from, and may suffer loss of exemption for, engaging in any political campaign on behalf of, or in opposition to, any candidate for public office. H&r block advantage Due date. H&r block advantage   Form 1120-POL is due by the 15th day of the 3rd month after the end of the tax year. H&r block advantage Thus, for a calendar year taxpayer, Form 1120-POL is due on March 15 of the following year. H&r block advantage If any due date falls on a Saturday, Sunday, or legal holiday, the organization can file the return on the next business day. H&r block advantage    Form 1120-POL is not required of an exempt organization that makes expenditures for political purposes if its gross income does not exceed its directly connected deductions by more than $100 for the tax year. H&r block advantage Extension of time to file. H&r block advantage    Use Form 7004 to request an automatic 6-month extension of time to file Form 1120-POL. H&r block advantage The extension will be granted if you complete Form 7004 properly, make a proper estimate of the tax (if applicable), file Form 1120-POL by the due date, and pay any tax due. H&r block advantage Failure to file. H&r block advantage   A political organization that fails to file Form 1120-POL is subject to a penalty equal to 5% of the tax due for each month (or partial month) the return is late up to a maximum of 25% of the tax due, unless the organization shows the failure was due to reasonable cause. H&r block advantage For more information about filing Form 1120-POL, refer to the instructions accompanying the form. H&r block advantage Failure to pay on time. H&r block advantage   An organization that does not pay the tax when due generally may have to pay a penalty of 1/2 of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax. H&r block advantage The penalty will not be imposed if the organization can show that the failure to pay on time was due to reasonable cause. H&r block advantage Reporting Requirements for a Political Organization Certain political organizations are required to notify the IRS that the organization is to be treated as a section 527 political organization. H&r block advantage The organization is also required to periodically report certain contributions received and expenditures made by the organization. H&r block advantage To notify the IRS of section 527 treatment, an organization must file Form 8871. H&r block advantage To report contributions and expenditures, certain tax-exempt political organizations must file Form 8872. H&r block advantage Form 8871 A political organization must electronically file Form 8871 to notify the IRS that it is to be treated as a section 527 organization. H&r block advantage However, an organization is not required to file Form 8871 if: It reasonably expects its annual gross receipts to always be less than $25,000. H&r block advantage It is a political committee required to report under the Federal Election Campaign Act of 1971 (FECA) (2 U. H&r block advantage S. H&r block advantage C. H&r block advantage 431(4)). H&r block advantage It is a state or local candidate committee. H&r block advantage It is a state or local committee of a political party. H&r block advantage It is a section 501(c) organization that has made an “exempt function expenditure. H&r block advantage ” All other political organizations are required to file Form 8871. H&r block advantage An organization must provide on Form 8871: Its name and address (including any business address, if different) and its electronic mailing address; Its purpose; The names and addresses of its officers, highly compensated employees, contact person, custodian of records, and members of its board of directors; The name and address of, and relationship to, any related entities (within the meaning of section 168(h)(4)); and Whether it intends to claim an exemption from filing Form 8872, Form 990, or Form 990-EZ. H&r block advantage Employer identification number. H&r block advantage   If your organization needs an EIN, you can apply for one: Online—Click on the Employer ID Numbers (EINs) link at www. H&r block advantage IRS. H&r block advantage gov/businesses/small. H&r block advantage By telephone at 1-800-829-4933 from 7:00 a. H&r block advantage m. H&r block advantage to 10:00 p. H&r block advantage m. H&r block advantage in the organization's local time zone. H&r block advantage By mailing or faxing Form SS-4. H&r block advantage   If you previously applied for an EIN and have not yet received it, or you are unsure whether you have an EIN, please call our toll-free customer account services number, 1-877-829-5500, for assistance. H&r block advantage Due dates. H&r block advantage   The initial Form 8871 must be filed within 24 hours of the date on which the organization was established. H&r block advantage If there is a material change, an amended Form 8871 must be filed within 30 days of the material change. H&r block advantage When the organization terminates its existence, it must file a final Form 8871 within 30 days of termination. H&r block advantage   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. H&r block advantage How to file. H&r block advantage   An organization must file Form 8871 electronically via the IRS Internet website at www. H&r block advantage IRS. H&r block advantage gov/polorgs (Keyword: political orgs). H&r block advantage Form 8453-X, Political Organization Declaration for Electronic Filing of Notice of Section 527 Status. H&r block advantage   After electronically submitting Form 8871, the political organization must print, sign, and mail Form 8453-X to the IRS. H&r block advantage Upon receipt of the Form 8453-X, the IRS will send the organization a username and password that must be used to file an amended or final Form 8871 or to electronically file Form 8872. H&r block advantage Penalties Failure to file. H&r block advantage   An organization that is required to file Form 8871, but fails to do so on a timely basis, will not be treated as a tax-exempt section 527 organization for any period before the date Form 8871 is filed. H&r block advantage Also, the taxable income of the organization for that period will include its exempt function income (including contributions received, membership dues, and political fundraising receipts) minus any deductions directly connected with the production of that income. H&r block advantage   Failure to file an amended Form 8871 will cause the organization not to be treated as a tax-exempt section 527 organization. H&r block advantage If an organization is treated as not being a tax-exempt section 527 organization, the taxable income of the organization will be determined by considering any exempt function income and deductions during the period beginning on the date of the material change and ending on the date that the amended Form 8871 is filed. H&r block advantage    The tax is computed by multiplying the organization's taxable income by the highest corporate tax rate. H&r block advantage Fraudulent returns. H&r block advantage   Any individual or corporation that willfully delivers or discloses to the IRS any list, return, account, statement or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation) or imprisoned for not more than 1 year or both. H&r block advantage Waiver of penalties. H&r block advantage   The IRS may waive any additional tax assessed on an organization for failure to file Form 8871 if the failure was due to reasonable cause and not willful neglect. H&r block advantage Additional information. H&r block advantage   For more information on Form 8871, see the form and its instructions. H&r block advantage For a discussion on the public inspection requirements for the form, see Public Inspection of Exemption Applications, Annual Returns, and Political Organization Reporting Forms , later. H&r block advantage Form 8872 Every tax-exempt section 527 political organization that accepts a contribution or makes an expenditure, for an exempt function during the calendar year, must file Form 8872 except: A political organization that is not required to file Form 8871 (discussed earlier). H&r block advantage A political organization that is subject to tax on its income because it did not file or amend Form 8871. H&r block advantage A qualified state or local political organization (QSLPO), discussed below. H&r block advantage All other tax-exempt section 527 organizations that accept contributions or make expenditures for an exempt function are required to file Form 8872. H&r block advantage Qualified state or local political organization. H&r block advantage   A state or local political organization may be a QSLPO if: All of its political activities relate solely to state or local public office (or office in a state or local political organization). H&r block advantage It is subject to a state law that requires it to report (and it does report) to a state agency information about contributions and expenditures that is similar to the information that the organization would otherwise be required to report to the IRS. H&r block advantage The state agency and the organization make the reports publicly available. H&r block advantage No federal candidate or office holder: Controls or materially participates in the direction of the organization, Solicits contributions for the organization, or Directs the disbursements of the organization. H&r block advantage Information required on Form 8872. H&r block advantage   If an organization pays an individual $500 or more for the calendar year, the organization is required to disclose the individual's name, address, occupation, employer, amount of the expense, the date the expense was paid, and the purpose of the expense on Form 8872. H&r block advantage   If an organization receives contributions of $200 or more from one contributor for the calendar year, the organization must disclose the donor's name, address, occupation, employer, and the date the contributions were made. H&r block advantage   For additional information that is required, see Form 8872. H&r block advantage Due dates. H&r block advantage   The due dates for filing Form 8872 vary depending on whether the form is due for a reporting period that occurs during a calendar year in which a regularly scheduled election is held, or any other calendar year (a nonelection year). H&r block advantage   If the due date falls on a Saturday, Sunday, or legal holiday, the organization can file on the next business day. H&r block advantage Election year filing. H&r block advantage    In election years, Form 8872 must be filed on either a quarterly or a monthly basis. H&r block advantage Both a pre-election report and a post-election report are also required to be filed in an election year. H&r block advantage An election year is any year in which a regularly scheduled general election for federal office is held (an even-numbered year). H&r block advantage Nonelection year filing. H&r block advantage    In nonelection years, the form must be filed on a semiannual or monthly basis. H&r block advantage A complete listing of these filing periods are in the Form 8872 Instructions. H&r block advantage A nonelection year is any odd-numbered year. H&r block advantage How to file. H&r block advantage   Form 8872 can be filed either electronically or by mail. H&r block advantage However, organizations that have, or expect to have, contributions or expenditures of $50,000 or more for the year must file electronically. H&r block advantage    To file by mail, send Form 8872 to the:   Department of the Treasury Internal Revenue Service Center Ogden, UT 84201-0027 Electronic filing. H&r block advantage   File electronically via the IRS internet website at www. H&r block advantage IRS. H&r block advantage gov/polorgs. H&r block advantage You will need a user ID and password to electronically file Form 8872. H&r block advantage Organizations that have completed the electronic filing of Form 8871 and submitted a completed and signed Form 8453-X will receive a username and password in the mail. H&r block advantage   Organizations that have completed the electronic filing of Form 8871, but have not received their user ID and password can request one by writing to the following address: Internal Revenue Service Attn: Request for 8872 Password Mail Stop 6273 Ogden, UT 84201 Lost username and password. H&r block advantage   If you have forgotten or misplaced the username and password issued to your organization after you filed your initial Form 8871, send a letter requesting a new username and password to the address under Electronic filing. H&r block advantage You can also fax your request to (801) 620-3249. H&r block advantage It may take 3-6 weeks for your new username and password to arrive, as they will be mailed to the organization. H&r block advantage Penalty A penalty will be imposed if the organization is required to file Form 8872 and it: Fails to file the form by the due date, or Files the form but fails to report all of the information required or reports incorrect information. H&r block advantage The penalty is 35% of the total amount of contributions and expenditures to which a failure relates. H&r block advantage Fraudulent returns. H&r block advantage   Any individual or corporation that willfully delivers or discloses any list, return, account, statement, or other document known to be fraudulent or false as to any material matter will be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned for not more than 1 year, or both. H&r block advantage Waiver of penalties. H&r block advantage   The IRS may waive any additional tax assessed on an organization for failure to file Form 8872 if the failure was due to reasonable cause and not willful neglect. H&r block advantage Donee Information Return Dispositions of donated property. H&r block advantage   If an organization receives charitable deduction property and within three years sells, exchanges, or otherwise disposes of the property, the organization must file Form 8282, Donee Information Return. H&r block advantage However, an organization is not required to file Form 8282 if: The property is valued at $500 or less, or The property is consumed or distributed for charitable purposes. H&r block advantage   Form 8282 must be filed with the IRS within 125 days after the disposition. H&r block advantage Additionally, a copy of Form 8282 must be given to the donor. H&r block advantage If the organization fails to file the required information return, penalties may apply. H&r block advantage Charitable deduction property. H&r block advantage   This is any property (other than money or publicly traded securities) for which the donee organization signed an appraisal summary or Form 8283, Noncash Charitable Contributions. H&r block advantage Publicly traded securities. H&r block advantage   These are securities for which market quotations are readily available on an established securities market as of the date of the contribution. H&r block advantage Appraisal summary. H&r block advantage   If the value of the donated property exceeds $5,000, the donor must get a qualified appraisal for contributions of property, see the Exceptions. H&r block advantage below. H&r block advantage Exceptions. H&r block advantage   A written appraisal is not needed if the property is: Nonpublicly traded stock of $10,000 or less, A vehicle (including a car, boat, or airplane), if your deduction for the vehicle is limited to the gross proceeds from its sale, Intellectual property, Certain securities considered to have market quotations readily available (see Regulations section 1. H&r block advantage 170A-13(c)(7)(xi)(B)), Inventory and other property donated by a corporation that are qualified contributions for the care of the ill, the needy, or infants, within the meaning of section 170(e)(3)(A), or Any donation of stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your trade or business. H&r block advantage   The donee organization is not a qualified appraiser for the purpose of valuing the donated property. H&r block advantage For more information, get Publication 561, Determining the Value of Donated Property. H&r block advantage Form 8283. H&r block advantage   For noncash donations over $5,000, the donor must attach Form 8283 to the tax return to support the charitable deduction. H&r block advantage The donee must sign Part IV of Section B, Form 8283 unless publicly traded securities are donated. H&r block advantage The person who signs for the donee must be an official authorized to sign the donee's tax or information returns, or a person specifically authorized to sign by that official. H&r block advantage The signature does not represent concurrence in the appraised value of the contributed property. H&r block advantage A signed acknowledgment represents receipt of the property described on Form 8283 on the date specified on the form. H&r block advantage The signature also indicates knowledge of the information reporting requirements on dispositions, as previously discussed. H&r block advantage A copy of Form 8283 must be given to the donee. H&r block advantage Information Provided to Donors In some situations, a donor must obtain certain information from a donee organization to obtain a deduction for a charitable contribution. H&r block advantage In other situations, the donee organization is required to provide information to the donor. H&r block advantage A charitable organization must give a donor a disclosure statement for a quid pro quo contribution over $75. H&r block advantage (See Disclosure statement. H&r block advantage later. H&r block advantage ) This is a payment a donor makes to a charity partly as a contribution and partly for goods or services. H&r block advantage See Quid pro quo contribution below for an example. H&r block advantage Failure to make the required disclosure may result in a penalty to the organization. H&r block advantage A donor cannot deduct a charitable contribution of $250 or more unless the donor has a written acknowledgment from the charitable organization. H&r block advantage In certain circumstances, an organization may be able to meet both of these requirements with the same written document. H&r block advantage Disclosure of Quid Pro Quo Contributions A charitable organization must provide a written disclosure statement to donors of a quid pro quo contribution over $75. H&r block advantage Quid pro quo contribution. H&r block advantage   A contribution made by a donor in exchange for goods or services is known as a quid pro quo contribution. H&r block advantage Your charitable organization must provide the donor a written statement informing the donor of the fair market value of the items or services it provided in exchange for the contribution. H&r block advantage Generally, a written statement is required for each payment, whenever the contribution portion is over $75. H&r block advantage Example. H&r block advantage If a donor gives your charity $100 and receives a concert ticket valued at $40, the donor has made a quid pro quo contribution. H&r block advantage In this example, the charitable part of the payment is $60. H&r block advantage Even though the deductible part of the payment is not more than $75, a written statement must be filed because the total payment is more than $75. H&r block advantage If your organization fails to disclose quid pro quo contributions, the organization may be subject to a penalty. H&r block advantage Disclosure statement. H&r block advantage   The required written disclosure statement must: Inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the fair market value of goods or services provided by the charity, and Provide the donor with a good faith estimate of the fair market value of the goods or services that the donor received. H&r block advantage The charity must furnish the statement in connection with either the solicitation or the receipt of the quid pro quo contribution. H&r block advantage If the disclosure statement is furnished in connection with a particular solicitation, it is not necessary for the organization to provide another statement when it actually receives the contribution. H&r block advantage   No disclosure statement is required if any of the following are true. H&r block advantage The goods or services given to a donor have insubstantial value as described in Revenue Procedure 90-12, 1990-1 C. H&r block advantage B. H&r block advantage 471, Revenue Procedure 90-12, and Revenue Procedure 92-49, 1992-1 C. H&r block advantage B. H&r block advantage 507 (as adjusted for inflation), Revenue Procedure 92-49. H&r block advantage There is no donative element involved in a particular transaction with a charity (for example, there is generally no donative element involved in a visitor's purchase from a museum gift shop). H&r block advantage There is only an intangible religious benefit provided to the donor. H&r block advantage The intangible religious benefit must be provided to the donor by an organization organized exclusively for religious purposes, and must be of a type that generally is not sold in a commercial transaction outside the donative context. H&r block advantage For example, a donor who, for a payment, is granted admission to a religious ceremony for which there is no admission charge is provided an intangible religious benefit. H&r block advantage A donor is not provided intangible religious benefits for payments made for tuition for education leading to a recognized degree, travel services, or consumer goods. H&r block advantage The donor makes a payment of $75 or less per year and receives only annual membership benefits that consist of: Any rights or privileges (other than the right to purchase tickets for college athletic events) that the taxpayer can exercise often during the membership period, such as free or discounted admissions or parking or preferred access to goods or services, or Admission to events that are open only to members and the cost per person of which is within the limits for low-cost articles described in Revenue Procedure 90-12 (as adjusted for inflation), Revenue Procedure 90-12. H&r block advantage Good faith estimate of fair market value (FMV). H&r block advantage   An organization can use any reasonable method to estimate the FMV of goods or services it provided to a donor, as long as it applies the method in good faith. H&r block advantage   The organization can estimate the FMV of goods or services that generally are not commercially available by using the FMV of similar or comparable goods or services. H&r block advantage Goods or services may be similar or comparable even if they do not have the unique qualities of the goods or services being valued. H&r block advantage Example 1. H&r block advantage A charity provides a 1-hour tennis lesson with a tennis professional for the first $500 payment it receives. H&r block advantage The tennis professional provides 1-hour lessons on a commercial basis for $100. H&r block advantage A good faith estimate of the lesson's FMV is $100. H&r block advantage Example 2. H&r block advantage For a payment of $50,000, a museum allows a donor to hold a private event in a room of the museum. H&r block advantage A good faith estimate of the FMV of the right to hold the event in the museum can be made by using the cost of renting a hotel ballroom with a capacity, amenities, and atmosphere comparable to the museum room, even though the hotel ballroom lacks the unique art displayed in the museum room. H&r block advantage If the hotel ballroom rents for $2,500, a good faith estimate of the FMV of the right to hold the event in the museum is $2,500. H&r block advantage Example 3. H&r block advantage For a payment of $1,000, a charity provides an evening tour of a museum conducted by a well-known artist. H&r block advantage The artist does not provide tours on a commercial basis. H&r block advantage Tours of the museum normally are free to the public. H&r block advantage A good faith estimate of the FMV of the evening museum tour is $0 even though it is conducted by the artist. H&r block advantage Penalty for failure to disclose. H&r block advantage   A penalty is imposed on a charity that does not make the required disclosure of a quid pro quo contribution of more than $75. H&r block advantage The penalty is $10 per contribution, not to exceed $5,000 per fundraising event or mailing. H&r block advantage The charity can avoid the penalty if it can show that the failure was due to reasonable cause. H&r block advantage Acknowledgment of Charitable Contributions of $250 or More A donor can deduct a charitable contribution of $250 or more only if the donor has a written acknowledgment from the charitable organization. H&r block advantage The donor must get the acknowledgment by the earlier of: The date the donor files the original return for the year the contribution is made, or The due date, including extensions, for filing the return. H&r block advantage The donor is responsible for requesting and obtaining the written acknowledgment from the donee. H&r block advantage A charitable organization that receives a payment made as a contribution is treated as the donee organization for this purpose even if the organization (according to the donor's instructions or otherwise) distributes the amount received to one or more charities. H&r block advantage Quid pro quo contribution. H&r block advantage   If the donee provides goods or services to the donor in exchange for the contribution (a quid pro quo contribution), the acknowledgment must include a good faith estimate of the value of the goods or services. H&r block advantage See Disclosure of Quid Pro Quo Contributions earlier. H&r block advantage Form of acknowledgment. H&r block advantage   Although there is no prescribed format for the written acknowledgment, it must provide enough information to substantiate the amount of the contribution. H&r block advantage For more information, see IRS Publication 1771, Charitable Contributions – Substantiation and Disclosure Requirements. H&r block advantage Cash contributions. H&r block advantage   To deduct a contribution of cash, a check, or other monetary gift (regardless of the amount), a donor must maintain a bank record or a written communication from the donee organization showing the donee's name, date, and amount of the contribution. H&r block advantage In the case of a lump-sum contribution (rather than a contribution by payroll deduction) made through the Combined Federal Campaign or a similar program such as a United Way Campaign, the written communication must include the name of the donee organization that is the ultimate recipient of the charitable contribution. H&r block advantage Contributions by payroll deduction. H&r block advantage   An organization may substantiate an employee's contribution by deduction from its payroll by: A pay stub, Form W-2, or other document showing a contribution to a donee organization, together with A pledge card or other document from the donee organization that shows its name. H&r block advantage   For contributions of $250 or more, the document must state that the donee organization provides no goods or services for any payroll contributions. H&r block advantage The amount withheld from each payment of wages to a taxpayer is treated as a separate contribution. H&r block advantage Acknowledgment of Vehicle Contribution If an exempt organization receives a contribution of a qualified vehicle with a claimed value of more than $500, the donee organization is required to provide a contemporaneous written acknowledgment to the donor. H&r block advantage The donee organization can use a completed Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, for the contemporaneous written acknowledgment. H&r block advantage See section 3. H&r block advantage 03 of Notice 2005-44 for guidance on the information that must be included in a contemporaneous written acknowledgment and the deadline for furnishing the acknowledgment to the donor. H&r block advantage Any donee organization that provides a contemporaneous written acknowledgment to a donor is required to report to the IRS the information contained in the acknowledgment. H&r block advantage The report is due by February 28 (March 31 if filing electronically) of the year following the year in which the donee organization provides the acknowledgment to the donor. H&r block advantage The organization must file the report on Copy A of Form 1098-C. H&r block advantage An organization that files Form 1098-C on paper should send it with Form 1096, Annual Summary and Transmittal of U. H&r block advantage S. H&r block advantage Information Returns. H&r block advantage See the Instructions for Form 1096 for the correct filing location. H&r block advantage An organization that is required to file 250 or more Forms 1098-C during the calendar year must file the forms electronically or magnetically. H&r block advantage Specifications for filing Form 1098-C electronically or magnetically can be found in Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically at www. H&r block advantage IRS. H&r block advantage gov/pub/irs-pdf/p1220. H&r block advantage pdf. H&r block advantage Acknowledgment For a contribution of a qualified vehicle with a claimed value of $500 or less, do not file Form 1098-C. H&r block advantage However, you can use it as the contemporaneous written acknowledgment under section 170(f)(8) by providing the donor with Copy C only. H&r block advantage See the Instructions for Form 1098-C. H&r block advantage Generally, the organization should complete Form 1098-C as the written acknowledgment to the donor and the IRS. H&r block advantage The contents of the acknowledgment depend upon whether the organization: Sells a qualified vehicle without any significant intervening use or material improvement, Intends to make a significant intervening use of or material improvement to a qualified vehicle prior to sale, or Sells a qualified vehicle to a needy individual at a price significantly below fair market value, or a gratuitous transfer to a needy individual in direct furtherance of a charitable purpose of the organization of relieving the poor and distressed or the underprivileged who are in need of a means of transportation. H&r block advantage For more information on the acknowledgment, see Notice 2005-44, 2005-25 I. H&r block advantage R. H&r block advantage B. H&r block advantage 1287, at www. H&r block advantage irs. H&r block advantage gov/irb/2005-25_IRB/2005-25_IRB/ar09. H&r block advantage html. H&r block advantage Material improvements or significant intervening use. H&r block advantage   To constitute significant intervening use, the organization must actually use the vehicle to substantially further the organization's regularly conducted activities, and the use must be significant, not incidental. H&r block advantage Factors in determining whether a use is a significant intervening use depend on the nature, extent, frequency, and duration. H&r block advantage For this purpose, use includes providing transportation on a regular basis for a significant period of time or significant use directly related to training in vehicle repair. H&r block advantage Use does not include the use of a vehicle to provide training in business skills, such as marketing or sales. H&r block advantage Examples of significant use include: Driving a vehicle every day for 1 year to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. H&r block advantage Driving a vehicle for 10,000 miles over a 1-year period to deliver meals to needy individuals, if delivering meals is an activity regularly conducted by the organization. H&r block advantage   Material improvements include major repairs and additions that improve the condition of the vehicle in a manner that significantly increases the value. H&r block advantage To be a material improvement, the improvement cannot be funded by an additional payment to the organization from the donor of the vehicle. H&r block advantage Material improvements do not include cleaning, minor repairs, routine maintenance, painting, removal of dents or scratches, cleaning or repair of upholstery, and installation of theft deterrent devices. H&r block advantage Penalties. H&r block advantage   If your charitable organization receives contributions of used motor vehicles, boats, and airplanes valued over $500 it may be subject to a penalty if it knowingly: Fails to furnish an acknowledgement in a timely manner, showing the required information, or Furnishes a false or fraudulent acknowledgement of the contribution. H&r block advantage    Other penalties may apply. H&r block advantage See Part O in the 2012 General Instructions for Certain Information Returns. H&r block advantage   An acknowledgment containing a certification will be presumed to be false or fraudulent if the qualified vehicle is sold to a buyer other than a needy individual without a significant intervening use or material improvement within 6 months of the date of the contribution. H&r block advantage   If a charity sells a donated vehicle at auction, the IRS will not accept as substantiation an acknowledgment from the charity stating that the vehicle is to be transferred to a needy individual for significantly below fair market value. H&r block advantage Vehicles sold at auction are not sold at prices significantly below fair market value, and the IRS will not treat vehicles sold at auction as qualifying for this exception. H&r block advantage   The penalty for a false or fraudulent acknowledgment where the donee certifies that the vehicle will not be transferred for money, other property, or services before completion of material improvements or significant intervening use or the donee certifies that the vehicle is to be transferred to a needy individual for significantly below fair market value in furtherance of the donee's charitable purpose is the larger of $5,000 or the claimed value of the vehicle multiplied by 39. H&r block advantage 6%. H&r block advantage   The penalty for an acknowledgment relating to a qualified vehicle being sold in an arm's length transaction to an unrelated party is the larger of the gross proceeds from the sale or the sales price stated in the acknowledgment multiplied by 39. H&r block advantage 6%. H&r block advantage Qualified Intellectual Property A taxpayer who contributes qualified intellectual property to a charity may be entitled to a charitable deduction, in addition to any initial deduction allowed in the year of contribution. H&r block advantage The additional deduction is based on a specified percentage of the qualified donee income with respect to the qualified intellectual property. H&r block advantage To qualify for the additional charitable deduction, the donor must provide notice to the donee at the time of the contribution that the donor intends to treat the contribution as qualified intellectual property contribution for purposes of sections 170(m) and 6050L. H&r block advantage Every donee organization described in section 170(c) (except a private foundation as defined in section 509(a) that is not described in section 170(b)(1)(F)) that receives or accrues net income from a charitable gift of qualified intellectual property must file Form 8899. H&r block advantage Form 8899. H&r block advantage   Form 8899, Notice of Income From Donated Intellectual Property, is used by a donee to report net income from qualified intellectual property to the donor of the property and to the IRS and is due by the last day of the first full month following the close of the donee’s tax year. H&r block advantage This form must be filed for each tax year of the donee in which the donated property produces net income, but only if all or part of that tax year occurs during the 10-year period beginning on the date of the contribution and that tax year does not begin after the expiration of the legal life of the donated property. H&r block advantage Qualified donee income. H&r block advantage   Qualified donee income is any net income received by or accrued to the donee that is properly allocable to the qualified intellectual property for the tax year of the donee which ends within or with the tax year of the donor. H&r block advantage Income is not treated as allocated to qualified intellectual property if it is received or accrued after the earlier of the expiration of the legal life of the qualified intellectual property, or the 10-year period beginning with the date of