If your organization neglects to file the required annual forms with the IRS for three consecutive years, you will lose your tax-exempt status. Loss of your tax-exempt status will likely mean loss of donors, so it is imperative that you take action to reinstate your status immediately. Use the steps we’ve outlined below to reclaim your nonprofit designation.Read More
While you are able to supplement your usual income-producing activities with sponsorships and advertising programs, it’s important to understand the possible tax implications of income from these outside sources.Read More
By now you probably know that the Tax Cuts and Jobs Act that was signed into law in December 2017 eliminated the business deduction for Qualified Transportation Fringes (QTFs).
The Tax Cuts and Jobs Act of 2017 that was signed into law on December 22, 2017 contains several provisions, including some related to qualified transportation fringe benefits.Read More
Not-for-profit organizations do not exclusively receive cash donations. Your support also likely comes in the form of gifts in kind and donated services. But even when such gifts are welcome, it can be challenging to determine the value of donated items for financial reporting purposes.Read More
It is often assumed that all nonprofit organizations are completely tax exempt, but do nonprofit organizations pay taxes? While most nonprofits do have exempt status, they can still be subject to tax if they have unrelated business taxable income (UBTI). UBTI is subject to unrelated business income tax (UBIT).Read More
The Tax Exempt and Governmental Entities (TE/GE) division of the IRS consists of three subdivisions, as follows:
- Exempt Organizations subdivision (EO)
- Employee Plans subdivision (EP)
- Federal State and Local Governments subdivision (FSLG)
The 2016 tax year brings specific compliance issues into focus for each of these three subdivisions.Read More
Form 990 disclosure pumps up the urgency of state registration
For years Anytown, USA, Charity has asked for donations from out-of-state residents. This started on a small scale — a handful of the charity’s donors retired in other states or lived there part of the year.
Now the charity has begun to reach out to hundreds of potential contributors in multiple states. The Internet makes it easy and inexpensive for the not-for-profit to solicit funds outside of its backyard. But along with this expansion comes the need for registration in additional states.Read More
Changes to not-for-profit reporting rules are coming. Are you familiar with the FASB’s proposed new model of reporting for not-for-profit organizations, Presentation of Financial Statements of Not-for-Profit Entities? Currently, the FASB is reviewing comments received for this proposed standard, which was issued in April, and the FASB will consider comments received during a comment period that closed August 20 before setting an effective date. The proposed changes will require retrospective application once adopted.
We have summarized the following areas we consider to be the significant changes outlined in the proposed standard.Read More
An Excess Benefit Transaction occurs when the consideration that a disqualified person receives exceeds the value that is warranted by the person’s employment with a tax-exempt organization. In simple terms, the employee is getting paid more than their actions are worth. This can cause serious complications as the IRS imposes an excise tax on these excess benefits.