Annual Tax Planning Webinar: Important Considerations for the 2021 Tax Year
The last 18 months have been marked by unprecedented uncertainty for the US and the world. As taxpayers continue to navigate the economic ups and downs of the pandemic ― from unemployment to PPP loans to advance child tax credit payments, they are also challenged with how to minimize their tax liability for the 2021…
Ricardo Trujillo and Tricia Katebini Discuss AI with the Journal of Accountancy
GRF CPAs & Advisors (GRF) Partner, Ricardo Trujillo, CPA, CITP, CISA and Senior Manager, Tricia Katebini, CPA, MBA discussed the firm’s transition to Artificial Intelligence (AI) in a recent article for the Journal of Accountancy. Both auditors played a significant role in GRF’s due diligence and rollout of MindBridge, a cloud-based platform that analyzes transactions and assigns a risk percentage based on 28 control points within the software. Instead of sampling transactions for review during the annual audit, the platform ingests and analyzes every transaction.
Public Support Test Basics
The Internal Revenue Code’s public support test provisions use mathematical income tests measured over an aggregate 5-year computation period to determine the tax status of public charities and private foundations. These provisions are particularly important for public charities which are required to have at least one-third of their revenue come from the public, government sources,…
Public Support Tests: Why You Might Prefer Public Charity to Private Foundation?
While the Internal Revenue Code Section 501(c) lists 29 different types of nonprofit organizations, most tax-exempt organizations are those described in Section 501(c)(3) and have a charitable, religious, educational, or scientific purpose. Every 501(c)(3) tax-exempt organization must be further classified as either a public charity or a private foundation. Some types of charities, such as…
Public Support Tests: How a Public Charity is Defined Under Sec. 509(a)(2)?
The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509(a)(1) and 509(a)(2). This article focuses on (a)(2) public charities, whose public support test calculations present a few more complexities than that of an (a)(1) public charity. The test to classify an…