IRS Issues Proposed Regulations under IRC 512(a)(6) applicable to Tax-Exempt Organizations
IRS released proposed regulations providing guidance on unrelated business income tax for tax-exempt organizations. REG-106864-18 explains how an exempt organization subject to the unrelated business income tax described in section 511 of the Internal Revenue Code (Code) determines if it has more than one unrelated trade or business, and, if so, how the exempt organization…
OMB Proposes Changes to Uniform Guidance (2 CFR 200)
On January 22, 2020 the Office of Management and Budget (OMB) proposed various revisions to the Code of Federal Regulations, including sections of 2 CFR 200, Uniform Guidance. A public comment period on the proposed changes is open through March 23, 2020. Entities that receive federal grants and/or cooperative agreements, or those who could otherwise…
IRS Releases 990-T Refund Procedures for Qualified Transportation Fringes (QTFs)
With the retroactive repeal of Internal Revenue Code (IRC) Section 512(a)(7), many tax-exempt organizations are now entitled to a refund of UBI taxes paid on QTFs as explained in GRF’s December 23, 2019 industry alert. On January 21, 2020, the Internal Revenue Service (IRS) posted instructions on its website on how to claim a refund…
President Signs Bill Repealing Troublesome TCJA Provision for Nonprofit Organizations
Repeal of the UBI Tax on Nonprofits Providing QTFs On Friday, December 20, 2019, President Trump signed “The Taxpayer Certainty and Disaster Tax Relief Act of 2019” (the Act) as part of a spending bill to fund the government through September 2020. The Act includes a provision to retroactively repeal Internal Revenue Code Section (IRC)…
Potential Repeal of Unrelated Business Income Tax on Qualified Transportation Fringe Benefits and Change of Private Foundation Tax Rate on Investment Income
On December 17, 2019, lawmakers and administration officials released a tax plan that includes two provisions of interest to the nonprofit community. The first is a retroactive repeal of Internal Revenue Code Section (IRC) 512(a)(7) and the second is a change to the tax rate paid by private foundations on net investment income. These provisions,…
FASB Votes to Delay Effective Dates for Major Accounting Standards
The Financial Accounting Standards Board (FASB) voted last week to propose a delay of the effective dates for three major accounting standards for private companies, nonprofits and small reporting companies. One of these proposed changes would provide more time for nonprofit organizations to implement the lease accounting standard, now proposed to take effect in January…
District of Columbia Unclaimed Property Self-Audits by Nonprofit Organizations
Earlier this year, GRF published a blog post on state unclaimed property laws that noted the state initiatives for self-audits by taxpayers, including nonprofit organizations. Members of GRF’s Nonprofit Tax Team have been contacted recently by a number of Washington, DC-based nonprofits regarding a DC Self-Audit Notice. It is our understanding that many states, including…
Nonprofit Filing Changes Under the Taxpayer First Act
By: Janna Goudarzi | Nonprofit Tax Manager Signed into law by President Trump on July 1, 2019, the Taxpayer First Act (the Act) was proposed to modernize and improve the Internal Revenue Services (IRS). The new law requires all tax-exempt organizations with a filing requirement (Forms 990, 990-PF, 990-EZ, and 990-T) to do so electronically….
Update on DC Tax Exempt Organization Renewal
As a follow up to the Industry Alert sent on December 18, 2018, Gelman, Rosenberg & Freedman CPAs’ (GRF) Nonprofit Tax group is reminding organizations that the District of Columbia (DC) Office of Tax and Revenue (OTR) has begun expiring all DC tax exemptions issued more than four years ago. The renewal process itself has…
DC Tax-Exempt Organizations Should Proactively Renew Their Status for 2019
Starting January 1, 2019, the District of Columbia (DC) Office of Tax and Revenue (OTR) will begin to expire current DC tax-exempt status and require each tax-exempt organization to renew its exemption or be reclassified as a taxable entity. To ensure that your organization’s DC tax exemptions (including income, sales or property tax) do not…