Spring 2012 issue of Horizons

Not-For-Profit – continued

• The IRS will continue to examine not-for-profits with overseas operations, including large private foundations (assets or total revenue in excess of $500 million) with international activities, to ensure their activities are consistent with their charitable missions. • Organizations reporting ownership of foreign bank accounts will be scrutinized. The IRS wants to ensure these organizations maintain adequate records to support their assets’ use for charitable purposes and proper control over funds that are leaving the United States. In addition, compliance with filing requirements and determining that the foreign operations further the organization’s mission will also be reviewed. • The IRS also plans to examine a sample of the largest private foundations to determine compliance with private foundation rules. If you have any questions or concerns, please contact us.

- Exempt organizations that report unrelated business activities but don’t file a Form 990-T. In connection with a future project, the IRS will also begin to analyze data with respect to organizations that report significant gross receipts for unrelated business activities but pay no tax. - The IRS will also begin to look at the connections between certain governance practices – as reported on the redesigned Form 990 – and tax compliance.

RubinBrown’s Not-For-Profit Services Group As a recognized leader in the not-for-profit sector, we have the resources essential to serve arts and cultural organizations, foundations, private schools, religious organizations, social service agencies and trade and membership associations.

Judy Murphy, CPA - St. Louis Partner-In-Charge Not-For-Profit Services Group judy.murphy@rubinbrown.com 314.290.3496

Chip Harris, CPA - Kansas City Partner Not-For-Profit Services Group chip.harris@rubinbrown.com 913.499.4426

Evelyn Law, CPA - Denver Partner Not-For-Profit Services Group evelyn.law@rubinbrown.com 303-952.1245

Jim Ritts, CPA - St. Louis Partner Not-For-Profit Services Group jim.ritts@rubinbrown.com 314.290.3268

Raise Your Expectations

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