On August 17, 2006, the President signed the Pension Protection Act of 2006. The statute enacted numerous changes to the tax law provisions affecting tax-exempt organizations.
Key Provisions
Key provisions of the legislation include the following:
-
Beginning in 2008, exempt organizations with gross receipts of $25,000 or less must file an annual notice, using a filing system which is now available.
-
Controlling organizations must report income from and loans to controlled organizations as well as transfers between controlled and controlling organizations. This provision is effective for returns due (without regard to extensions) after the date of enactment.
-
Section 501(c)(3) organizations that file unrelated business income tax returns (Forms 990-T) must now make them available for public inspection. This provision is effective for returns filed after the date of enactment.
-
-
-
Applicable exempt organizations are subject to new reporting requirements when they acquire life insurance contracts that are structured to give both the exempt organization and private investors an interest in the contract. For purposes of this reporting requirement, applicable exempt organizations include governmental organizations (including Indian Tribal Governments) and employee stock ownership plans.
-
Forms Changes
Note on TY2006 filings: Several Pension Protection Act provisions affected exempt organization returns for Tax Year 2006 (filed in 2007). See TY2006 Forms Changes, for a discussion of these changes. IRS experts discussed these changes in telephone conferences conducted on March 21 and 22, 2007. The text of the presentation can be found here.
Note on TY2005 filings: Certain provisions of the Pension Protection Act of 2006 resulted in new reporting requirements for Forms 990, 990-EZ, 990-PF, 990-T and 4720. The 2005 forms and instructions were not changed to reflect these reporting requirements. Click here for information about how to provide the required information on 2005 forms.
Additional information:
-
-
-
Detailed summary, issued by House Committee on Ways and Means, of provisions affecting charitable organizations
-
Webcast on EO provisions in Pension Protection Act: IRS specialists joined a panel of other exempt organizations experts to discuss these provisions in an IRS sponsored webcast on March 13, 2007. The free program, Emerging Issues for Exempt Organizations, can be found in the program archives at TaxTalkToday.tv.
Updated: May 12, 2008
|