The IRS has announced that there is a one-time relief program available to small non-profits and charities that are at risk of losing their tax-exempt status. If a tax-exempt organization has not satisfied annual filing requirements for the last three consecutive years, they will automatically lose tax-exempt status. The relief program offers two types of assistance:
1)    A filing extension until October 15, 2010 for the smallest organizations who are required to file a Form 990-N, Electronic Notice.
2)    A voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

Those required to file Form 990-N can simply go to the IRS website by Oct 15, 2010 to file electronically. Organizations under the VCP must file their delinquent annual returns by Oct 15, 2010 and pay a compliance fee.

A state-by-state list of the last known names and addresses of these at-risk organizations has been posted on the IRS website at http://www.irs.gov/charities/article/0,,id=225889,00.html. Other organizations may also be at risk of automatic revocation even if their names do not appear on the list. The IRS will keep the list on their website until October 15, 2010 and will publish a list of revoked organizations in early 2011. If an organization has lost its tax-exempt status it will need to reapply for exemption and may be taxed on income received between the revocation and renewal date.

Larson Financial, Inc., a tax debt resolution firm headquartered in Broomfield, CO, joined approximately 3,500 others in this past weekend’s quest to raise organ and tissue donation awareness. The Donor Alliance’s 11th Annual Donor Dash took place on July 18th in Denver’s Washington Park. Larson Financial had an enthusiastic team of employees taking part in the 5K run/walk to honor donors, celebrate the lives recipients and recognize those continuing to wait for a transplant. The event was a wonderful success and included stories from donor families, donor recipients and those touched by organ and tissue donation.

In addition to supporting the Donor Alliance, Larson Financial has also made a donation to Holly Werlein, a liver transplant recipient, to help fund her participation in the U.S. Transplant Games. The U.S. Transplant Games are organized by the National Kidney Foundation and will take place July 30 – Aug 4, 2010, in Madison, WI.  The weekend will be filled with games, events and activities for athletes, donor families, living donors and all friends and supporters. The competitive Games take place every two years and consist of Olympic-style competition for living donors or athletes who have received life saving organ and tissue donations.

Holly Werlein was a healthy 21-year old, when she went in for a routine doctor’s appointment. When her mom noticed some yellowing in her eyes, her liver enzymes were tested and she was immediately admitted to the hospital with acute liver failure. She was placed at the top of the nationwide transplant waiting list and miraculously a liver was found in 8 hours. She received a life-saving transplant with no time to spare. Today, at 25, Holly is joyful to be alive and celebrates her gift of life each and every day. She has dedicated herself to promoting and educating people about the importance of organ donation and she continues to spread the word about pursuing your dreams and living life to the fullest. Holly has competed in past U.S. Transplant Games as well as last year’s World Transplant Games in Australia where she earned to medals in swimming and placed 4th in volleyball.

Larson Financial, Inc. is a nationwide organization assisting businesses and individuals who have state and federal tax liabilities. The team of experienced professionals at Larson Financial is committed to providing superior customer service with honest answers and real solutions. To find the right solution to your tax issues contact Larson Financial, Inc today at 888-902-0778.

The Internal Revenue Service has recently released the Revised Form 941 for 2010: Employers Quarterly Federal Tax Return to file in regards to the Hiring Incentives to Restore Employment Act (HIRE Act), signed into law on March 18, 2010 by President Obama. The HIRE Act gives two new tax breaks to employers who hire workers that were previously unemployed or only employed on a part time basis. The 6.2-percent payroll tax incentive applies to new hires after Feb. 3, 2010 and before Jan. 1, 2011. For each worker retained for at least a year, the employer may also claim a general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns. Businesses, agricultural employers, tax-exempt organizations and public colleges and universities all qualify to claim the payroll tax benefit for eligible newly-hired employees. Household employers cannot claim this new tax benefit.

Employers should use IRS Form W-11 for each eligible new hire, certifying, under penalties of perjury, that he or she was not employed for more than 40 hours during the 60 days before beginning employment with the new employer.

Among other things being targeted in a report to Congress, Nina E. Olsen, National Taxpayer Advocate, has expressed concern about declining taxpayer services and overly strict IRS collection practices that do not gross significant revenue gains.

In recent years more taxpayers have been contacting the IRS for assistance and education while overall funding for taxpayer service programs has fallen, resulting in an imbalance between taxpayer demand and available IRS resources. The reduction in taxpayer services ultimately weakens tax compliance and leaves taxpayers confused by complex rules and requirements. Ms. Olsen’s report suggests that additional taxpayer service, particularly outreach and education, could improve tax compliance.

The report also expresses concern that stringent collection practices of past due liabilities is disproportionate to the amount of revenue that is being raised through these actions. Since fiscal year 1999, the IRS has increased lien filings by 475% and levies by 600%, while actual revenue collected has decreased by approximately 7%.  Liens can have a significant impact on a taxpayer’s financial situation, affecting credit, ability to purchase or rent a home and even capacity to obtain a job. As a result, the taxpayer’s ability to pay future taxes may be in jeopardy.

Public statements from the IRS pledging to assist financially struggling taxpayers have also been called out in the report, noting that liens and levies have increased, while the number of offers in compromise being accepted is at an all time low. The IRS has assembled a senior-level task force, in response to these issues, to conduct a comprehensive review of collection practices.

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS, designed to assist taxpayers who are experiencing financial hardship and seeking to resolve tax issues not solved through normal channels.

If you are a taxpayer who is having difficulty paying the IRS, or if you have received notices of lien, levy or garnishment, contact Larson Financial to help resolve your issues. The team of experienced professionals at Larson Financial can help navigate your way through complex IRS tax debt issues and find the right solution for your situation. Larson Financial: 888-902-0778.

On July 2, 2010 President Obama signed the Homebuyer Assistance and Improvement Act of 2010, which extends the closing deadline from June 30th to September 30th for eligible homebuyer tax credit. To qualify for the First Time Homebuyer credit eligible homebuyers must have bought or entered into a binding contract on a principle residence by April 30, 2010 and must close on the home on or before September 30, 2010. The credit is also available to long time residents of the same home who have purchased a new main home. More information on documentation and filing requirements for the First Time Homebuyer Credit can be found at http://www.irs.gov/newsroom/article/0,,id=204671,00.html