The Pension Protection Act of 2006

The federal Pension Protection Act of 2006 would be the newest legislation that is developed to defend workers’ pension rights. This Act consists of lots of embedded provisions for nonprofits, some of that are basically welcomed by the organizations.

Ease of revoking tax-exempt statusBefore the Pension Protection Act, the moment an organization received its determination from the IRS that it had qualified for tax-exempt status beneath Section 501(c)(three) with the Internal Income Code, that status remained in impact forever unless revoked by the IRS. Now, beneath Section 1223(b) with the Pension Protection Act, tax status is automatically revoked when the organization fails to file Form 990 3 years within a row. Form 990 would be the informational return that the IRS calls for nonprofit organizations to file.

Record-keeping needsSave your receipts! Beneath the new law, no tax deductions are allowed for money contributions devoid of a receipt, canceled verify, or credit card statement. You do not have to have to mail these points in along with your tax returns, but you do have to have to help keep the receipts and also other documentation along with your copy with the return in case you are stuck with an IRS audit. The new law also toughens the guidelines for noncash donations. For those who donate items which include automobiles, clothes, and household goods to a charity, they has to be in superior condition.