Financially Speaking

Easier filing for small charities

Sun, 11/02/2014 - 8:45am

Charities need to apply to the IRS for tax-exempt status. A new, shorter and simpler form has been made available, designed for small groups with annual gross receipts of $50,000 and total assets of $250,000 or less. Larger groups must use the longer standard form.
The new Form 1023-EZ is just two pages long, compared with the regular Form 1023, running to 26 pages. It must be filed electronically, accompanied by a $400 fee. Groups that lose their tax-exempt status for not filing can use Form 1023-EZ to file for reinstatement.
Applications are expected to be approved automatically and in a short time, and that streamlined process is raising concerns from charity watchdogs who fear the IRS is not adequately investigating the applicants for tax-exempt status. Also concerned are state and local governments, most of which exempt qualified charities from income and property taxes.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/