Recent IRS Guidance Addresses the Taxability of PPP Loan Forgiveness
Businesses that received Paycheck Protection Program (PPP) loans can apply for forgiveness once all loan proceeds for which they are requesting forgiveness have been used. On November 18, 2021, the IRS issued a series of three Revenue Procedures addressing the tax effects when a PPP loan is forgiven. Here’s a brief rundown of each. Revenue Procedure…
Navigating the Tax Angles for ETFs
Exchange traded funds (ETFs) are hot. Last year, $507.4 billion flowed into ETFs listed in the United States, according to Statista, a provider of market and consumer data. Net assets held by ETFs totaled roughly $5.4 trillion in 2020 — up from less than $1 trillion a decade earlier. The trend has apparently continued with a…
What Gig Work Means for Your Taxes
By Patrick Crosby, Tax Supervisor The Rise of the Gig Economy With the steadily increasing cost of living, a dramatic shift to remote work arrangements, and advances in digital-based technology, many Americans are turning to gig work to earn supplemental income. For some, it has become their main source of income. The IRS defines the…
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…
Public Support Tests: Does Your Public Charity Pass the Section 509(a)(1) Test?
To be a public charity, an organization must meet one of the Internal Revenue Code (Code) Section 509(a) tests. This article focuses on the first listed test, Section 509(a)(1), and the ramifications for a charitable organization described in this section. However, to understand 509(a)(1), it is helpful to understand the alternative 509(a)(2) test. Please note…
Reporting Requirements for International Income and Foreign Assets
By Jennifer Galstad-Lee, Tax Manager Many Americans, including resident aliens, are moving to and from foreign countries and living abroad as cross-border commerce grows. Twenty months after the COVID-19 shutdown, our new normal includes a growing population of digital nomads within an acceleration of globalization. This trend has led to new tax logistics for many…
2021 Tax Strategies for Individuals and Businesses
By Jennifer Galstad-Lee, CPA, JD, Tax Manager November is a great time to review your taxable individual and business income with the goal of maximizing your tax strategies for the current year. Below we provide some helpful checklists and schedules to guide you through some key tax considerations. Individuals Summarized below are several tax moves…
Tax Consequences of Offering Innovative Benefits
Although some companies that sent workers home during the pandemic have returned them to the office, many businesses continue to rely on remote workers. At the same time, companies in a range of industries are struggling to find and keep employees. This unusual business environment has spawned some innovative fringe benefits — or expanded traditional offerings…