IRS Grants One-Time Relief for Delinquent Nonprofit Organizations
Posted in on July 26, 2010
Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 have been given one final chance at getting back into compliance by making the required Form 990 filing by October 15, 2010. Click below to read the IRS press release:
http://www.irs.gov/newsroom/article/0,,id=225959,00.html
The IRS has also posted a list of "at risk" exempt organizations in Virginia as a point of reference and guidance for the Virginia nonprofit community. Click below to see the Virginia list:
Financial Reform Law Tweaks Reg. D definition of “Accredited Investor”
Posted in Real Estate Syndications on July 21, 2010
The Dodd-Frank Wall Street Reform and Consumer Protection Act (HR 4173) has been passed by the United States Congress and sent to the President for his signature. Once signed into law, Regulation D sponsors and syndicators must take immediate action to update their offering documents to comply with the law's revision to the definition of "Accredited Investor," the target audience for most Regulation D private placements.
In short, the revised definition of "Accredited Investor" now excludes the value of an individual's primary residence from the calculation of the $1,000,000 net worth test under Rule 501(a)(5). According to reports from the Real Estate Securities Investment Association, the SEC has indicated that this change will go into effect immediately upon President Obama’s signature of the bill. Therefore, Regulation D sponsors must take immediate action to update their offering documents, investor questionnaires, and subscription agreements to incorporate this new information. This would apply to offerings currently in progress as well those planned for future release.
Another change to Regulation D resulting from the financial reform law is to incorporate certain "bad boy" disqualifiers preventing certain issuers with a record of judgments against them from relying on Regulation D exemptions for their capital raising efforts.