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Four Web-based tools, known as “Life Cycles” and designed to guide tax-exempt organizations through applicable federal tax rules and requirements, were launched by IRS on June 28. As described by IRS, each life cycle provides a “graphical snapshot” of the five stages of a typical organization's life span—starting out, applying for tax-exempt status, required filings, ongoing compliance, and significant events, such as audits, private letter rulings and termination procedures. A variety of issues are covered in each life cycle, such as acquiring an employer identification number, how to avoid jeopardizing an organization's exemption, how political campaign involvement could affect the group's status and tax responsibilities, and meeting disclosure requirements. “The exempt organizations community has enthusiastically embraced the life cycle concept for public charities and private foundations,” said Lois Lerner, director of the IRS Exempt Organization's division. “We thought it made sense to develop similar helpful tools for other sectors of the exempt organizations community.”
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