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Specializing in IRS and NYS Tax Representation. Workers Compensation Audits, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. Civil and Criminal Workers Comp Audit representation includes: NYSIF Examinations, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records.

Tuesday, March 6, 2018

New York City's Best Tax Attorney & Accountant Discusses Tax-Exempt Status Under IRC Section 501 (c)(3)




Successful Civil and Criminal Tax Representation Selig & Associates practices before the Internal Revenue Service (“IRS”) the New York State Department of Taxation and Finance (“NYSDTF”) the Department of Justice Tax Division (“DOJ”) and the Defense Office of Hearings and Appeals (“DOHA”). *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435


Dear XXXXXX:

This is a final determination regarding your foundation classification. This modifies our letter dated August 12, 20xx, in which we determined that you were an organization exempt from Federal income tax under section 501 (c)(3) of the Internal Revenue Code (IRC) as a private operating foundation described in section 4942(j)(3). We have modified your foundation status to that of an organization described in IRC section 509(a) as a private non-operating foundation, effective for tax years beginning January 1, 20xx.

Your tax-exempt status under section 501 (c)(3) of the Internal Revenue Code is not affected. Grantors and contributors may rely on this determination, unless the Internal Revenue Service publishes a notice to the contrary. Because this letter could help resolve any questions about your private foundation status, please keep it with your permanent records.

Proven Results Selig & Associates successfully resolves IRS & NYS tax problems including: Tax Crimes; Tax Evasion; Failure to File a Tax Return and Criminal Non-Filing; Filing False Tax Returns; Installment Agreements; Partial Payment Agreements; IRS Audits; Sales Tax Audits; Sales Tax Controversies; Wage Garnishments; Bank Levies; Seizure of Real Property; Innocent Spouse Relief; Trust Fund Recovery Penalty; Payroll Taxes; Workers Compensation Insurance Audits ("Workers Comp"); Statute of Limitations; Offer in Compromise ("OIC"); Administrative Appeals; Collection Due Process Hearings ("CDP") and most other tax matters. *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

We previously provided you a report of examination explaining the proposed modification of your tax-exempt status. At that time, we informed you of your right to contact the Taxpayer Advocate, as well as your appeal rights. On July 20, 20xx, you signed Form 6018, Consent to Proposed Action - Section 7428, in which you agreed to the modification of your foundation classification to 509(a) organization. This is a final determination letter with regard to your Federal tax-exempt status under section 501 (a) of the Code.

You are required to file Form 990 PF, Return of Private Foundation. Form 990 PF must be filed by the 15th day of the fifth month after the end of your annual accounting periods. A penalty of $20 a day is charged when a return is filed late, unless there is a reasonable cause for the delay; however, the maximum penalty charged cannot exceed $10,000 or 5 percent of your gross receipts for the year whichever is less. In addition organizations with gross receipts exceeding $1,000,000 for any year will be charged a penalty of $100 a day when a return is filed late; however, the maximum penalty charged cannot exceed $50,000. These penalties may also be charged if a return is not complete, so be sure your return is complete before you file it.

If you are subject to the tax on unrelated business income under section 511 of the Code, you must also file an income tax return on Form 990-T, Exempt Organization Business Income Tax Return. If you decide to contest this determination in court, you must initiate a suit for a declaratory judgment in the United States Tax Court, the United States Claims Court, or the District Court of the United States for the District of Columbia before the 91 st day after the date this final determination letter was mailed to you. Contact the clerk of the appropriate court for rules for initiating suits for declaratory judgment. You may write to the Tax Court at the following address:

United States Tax Court,
400 Second Street
Washington, D.C. 20217

Sincerely,
Maria Hooke
Director, Exempt Organizations Examinations


FYI The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that can help protect your rights. We can offer you help if your tax problem is causing a hardship, or you've tried but haven't been able to resolve your problem with the IRS. If you qualify for our assistance, which is always free, we will do everything possible to help you. Visit taxpayeradvocate@irs.gov or call 1-877-777-4778.

Free information about the IRS Taxpayer Advocate Service

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers who are experiencing unresolved federal tax problems. Here are 10 things every taxpayer should know about TAS:
1.    The Taxpayer Advocate Service is your voice at the IRS.
 
2.    You may be eligible for our help if you’ve tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should.
 
3.    We help taxpayers whose problems are causing financial difficulty. This includes businesses, organizations and individuals.
 
4.    We’ll do everything we can to resolve your problem. And our service is always free.
 
5.    If you qualify for our help, you’ll be assigned to one advocate who will be with you at every turn.
 
6.    We have at least one local taxpayer advocate office in every state, the District of Columbia and Puerto Rico. To find your advocate:
o   Visit /advocate
o   Call us toll-free at 1-877-777-4778
o   Check your local directory
o   Look at Publication 1546, Taxpayer Advocate Service – Your Voice at the IRS, which lists our offices nationwide
 
7.    Our tax toolkit at www.TaxpayerAdvocate.irs.gov has basic tax information, details about tax credits, and more.
 
8.    TAS also handles broader problems that affect many taxpayers. If you know of one of these systemic issues, please report it to us at /sams.
 
9.    You can get updates at:
10.TAS is here to help you because when you’re dealing with a tax problem, the worst thing you can do is to do nothing at all!
 


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Selig & Associates is a boutique Tax Representation and Risk Management Firm specializing in unpaid tax obligations and commercial insurance coverage

  Tax Advocacy      Federal Tax Practitioner, CPCU and Attorney. Practicing before the Internal Revenue Service and New York State Departmen...