The Tribune Democrat, Johnstown, PA


December 8, 2012

THOMAS SEITZ | IRS announcements may apply to you

— If you are responsible for the reporting requirements of a nonprofit organization, there is an IRS deadline that may be important to you.

If your organization had its tax-exempt status revoked because you failed to file annual returns for 2007 through 2009, the IRS is giving you a chance to get reinstated with minimum fuss.

Small organizations with gross annual receipts of less than $50,000 can regain tax-exempt status retroactive to the date of revocation if they act soon. The organization must submit an application for reinstatement postmarked no later than Dec. 31. Filings by that date will qualify for a reduced application fee of $100.

The 2010 health care reform law included a requirement that employers report the cost of health insurance on each employee’s W-2 for 2012.

The IRS has postponed that requirement for employers issuing fewer than 250 W-2s for 2012 and later. For these employers, the reporting is optional.

The IRS is giving brokers extra time to start reporting the basis in debt instruments and options. This requirement had been scheduled to go into effect on Jan. 1.

But brokers and other involved parties complained to the IRS that this deadline did not give them enough time to build and test the systems required to meet this obligation.

The IRS has extended the deadline to Jan. 1, 2014. This reporting requirement was the third phase of investment basis reporting included in a 2008 tax law.

Next year’s tax return filing season is not likely to go smoothly, said National Taxpayer Advocate Nina Olson.

The problem is that Congress once again is waiting until the end of 2012 to extend tax provisions that have expired or to pass new tax rules.

The IRS Oversight Board, a nine-person panel, agrees with Olson, saying 2012 refunds will be delayed if Congress enacts late-in-the-year legislation. The IRS needs six to eight weeks to change forms and deal with revisions to the tax code.

For more information about tax issues that concern you, give a local accountant office a call.

Thomas R. Seitz is a certified public accountant with Wessel & Co. of Johnstown.

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