This quarterly newsletter provides recent updates and education information important to Arizona STOs.

Due Date Reminders

September 30th – FY 2014 Annual Reports are due for each credit for which your organization is certified. The signed engagement letter for your audit or review and agreed-upon procedures engagement should be attached to the report.
November 15th – Form 990, 990-EZ, or 990-N (e-postcard) is due to be filed with the IRS for fiscal years ending June 30, 2014.
December 31st – Audit or review and agreed-upon procedures reports are due to ADOR for FY 2014.

Tax Year 2015 STO Tax Credit Amounts Released

ADOR has released the individual tax credit amounts for tax year 2015 and included them in the STO manual that was updated as of April 8, 2014. The combined maximum tax credit amounts of $2,134 Married Filing Joint and $1,067 Single will go into effect for 2015 tax year donations as follows:

Original Tax Credit:
$1,070 Married Filing Joint
$535 Single 

Switcher Tax Credit:
$1,064 Married Filing Joint
$532 Single 

The total corporate tax credit donation limitation for fiscal year 2015 will be $42.998 million. The limit for all corporate disabled/displaced program tax credit contributions remains consistent at $5 million per year. 

IRS Search Tool for Charitable Organizations

Do you ever wonder if the charitable organizations you work with are compliant with IRS rules? The IRS website has updated its search tool for verifying the qualifying status of charitable organizations. The IRS keeps a database of groups eligible to receive tax-deductible donations and updates the data on the qualifying groups each month. You can now search the listing online. The link to the search tool can be found here: or on the website, under the Information for: Charities & Non-Profits section. This tool can be used to verify that your contribution to an organization would be considered tax-deductible by the IRS or to verify that you are dealing with an approved charitable organization.

IRS Working Toward Streamlined Tax-Exempt Application

The IRS recently released a draft of Form 1023-EZ. the form is a shorter, less burdensome version of the regular Form 1023, which is used to apply for exemption under Section 501(c)(3) of the Internal Revenue Code, and can be used if an organization meets specific criteria. In general, smaller organizations will be eligible to use this application in lieu of the 26-page Form 1023. Similar to the full Form 1023, upon acceptance, the IRS will issue a letter that provides written assurance about the organization's tax-exempt status and its qualifications to receive tax-deductible charitable contributions. For more information, see the IRS website: 
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