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New filing for tax-exempts
Thanks to a provision in the Pension Protection Act of
2006, tax-exempt organizations with annual gross receipts
of $25,000 or less will generally have to file a new annual
report with the IRS. Form 990-N is to be filed electronically,
and because it is short and easy, the IRS is calling it an
e-Postcard. If an organization fails to file for three consecutive
years, its tax-exempt status may be revoked.
IRS reminds employers about tip credit changes
Employers are being reminded by the IRS about changes relating
to the tip credit (known as the 45B credit). Even though the
federal minimum wage is now $5.85 an hour, employers are to
compute the credit on the previous minimum wage of $5.15.
Also, employers who claim the credit must reduce their social
security and Medicare tax deduction accordingly. Employers
may now use the credit to offset the alternative minimum tax;
previously the credit could only offset the regular income
tax.
©copyright
2007
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