IRS Issues Tax Extension Guidance for Taxpayers

On March 13, 2020, the President of the United States issued an emergency declaration under the Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease pandemic.

Changes to Net Operating Losses of Unrelated Business Activities for Nonprofits

Nonprofits are now required to silo Net Operating Losses (NOLs) from one unrelated business activity so that it doesn’t create a reduction of taxable income from another profitable unrelated business activity. 

2020-01-21T13:20:14-05:00January 14, 2020|Categories: Not-for-Profit|Tags: , |

SECURE Act Impacts Retirement Planning

President Trump signed the latest federal government spending bill on Friday December 20, 2019. The bill includes many tax law changes and extends several expired provisions. The bill also incorporates the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. Read on for three changes from the SECURE Act that all taxpayers should know.

2020-01-02T15:07:05-05:00December 24, 2019|Categories: Retirement|Tags: , , , |

Repeal of Nonprofit Parking Tax Announced

Congress has passed a $1.4 Trillion spending bill to avoid a government shutdown which includes a repeal of the tax on nonprofit organizations that provided qualified transportation fringe benefits, otherwise known as the “parking tax”. Any nonprofit that may have paid tax on the transportation fringe benefits should file an amended 990T to claim a refund of the taxes paid.

2019-12-20T18:19:11-05:00December 20, 2019|Categories: Not-for-Profit|Tags: |

Nonprofits Subject to High Tax Over Executive Compensation

The tax reform bill of 2017 brought changes to the deductible amount from a for-profit company and now nonprofit executive’s compensation deductions are changing, too. Code section 4960 further explains the 21% excise tax on the amount of compensation paid by an applicable tax-exempt organization, ATEO.

2019-12-03T14:21:12-05:00November 1, 2019|Categories: Not-for-Profit|Tags: , |

Tax Consequences for Tax-Exempt Social Clubs

While a club may be tax-exempt, it may be subject to tax on its unrelated business activities.  Read on to learn more as well as to download PBMares' “Member Function Questionnaire” for help in gathering the information required by the IRS.

Are Nonprofits Required to Pay Taxes for Employee Parking?

Under the Tax Cut & Jobs Act, nonprofits are required to allocate parking expenses provided to employees and report unrelated business taxable income (UBTI) on the transportation fringe benefit. Learn about the four-step process used to determine the amount of employee related parking expenses subject to UBTI.

2019-03-19T14:50:42-04:00February 22, 2019|Categories: Accounting, Not-for-Profit|Tags: , , |

Ten Tax Mistakes Ministers Make when Filing Taxes

Clergy members carry “dual tax status,” meaning they are considered “self-employed” for Social Security purposes but considered an “employee” for income tax purposes. Because of this dual status, many clergies do not file their taxes correctly and often miss-out on tax benefits. Understanding the following top ten mistakes clergy make when filing taxes will help you file correctly in the future.

2018-09-25T20:25:05-04:00September 25, 2018|Categories: Not-for-Profit|Tags: , |

Charitable Giving Hits All-Time High

In June 2018, Giving USA issued their annual giving report estimating charitable giving in the U.S. totaled $410 billion for 2017, an increase of 5.2 percent or $20.38 billion over the prior year. Giving by each of the four major types, Individuals, Foundations, Bequests, and Corporations, saw increases over the prior year.

2019-07-24T19:30:17-04:00September 11, 2018|Categories: Not-for-Profit|Tags: , , |