Daily Tax Update - June 29, 2017: IRS Releases Guidelines for Streamlined 501(c)(3) Application Process

IRS Releases Guidelines for Streamlined 501(c)(3) Application Process:  Today the IRS released final regulations T.D. 9819 that allow the IRS to adopt a streamlined application process eligible organizations may use to apply for recognition of tax-exempt status under Section 501(c)(3). The streamlined application process generally allows eligible small organizations to receive IRS determinations of tax-exempt status more quickly and allows the IRS to focus resources on more complex exemption applications and on compliance programs. 

IRS Releases Corrections to Regulations on Withholding, Information Reporting:  Today the IRS released correcting amendments to final and temporary regulations T.D. 9808, related to withholding of tax on certain US source income paid to foreign persons, information reporting and backup withholding with respect to payments made to certain US persons, and portfolio interest paid to nonresident alien individuals and foreign corporations. The IRS also released correcting amendments to final and temporary regulations T.D. 9809 that relate to information reporting by foreign financial institutions (FFIs) with respect to US accounts and withholding on certain payments to FFIs and other foreign entities. The IRS noted that several portions of T.D. 9808 and T.D. 9809, both of which were published in the Federal Register on January 6 could not be incorporated due to inaccurate amendatory instructions, and that the correcting amendments clarify or correct the results of these inaccurate amendatory instructions.