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…
IRS Releases Interim Guidance on Parking Fringe Benefits and Penalty Relief
On December 10, 2018, the IRS issued long-awaited interim guidance to tax-exempt organizations under Internal Revenue Code (IRC) Section 512(a)(7). Notice 2018-99 provides guidance on determining the amount of parking expenses for qualified transportation fringe benefits (QTFs) that are now unrelated business taxable income (UBTI). On the same day, the IRS also issued Notice 2018-100…
Consider Federal and State Tax Changes in Your Year-End Tax Planning
With summer coming to an end, it is not too early to think about year-end tax planning, particularly in light of U.S. tax reform and major developments like the Wayfair ruling. The CPAs at Gelman, Rosenberg & Freedman (GRF) are keeping clients informed as more clarity emerges around these landmark changes, and we work with…
Wayfair Ruling: Sales Tax Implications for Nonprofits
According to the recent U.S. Supreme Court ruling in South Dakota v. Wayfair, online sellers may be required to collect sales taxes even if the sellers do not have a physical presence in that state. This decision may have far reaching consequences to online sellers, including nonprofits. Nonprofits are often exempt from paying sales tax on items…
IRS Revises Schedule B Requirements for Some Nonprofits
The IRS released Revenue Procedure 2018-38 on July 16, which modified the Schedule B filing requirements for tax-exempt organizations exempt under IRC section 501(c) other than 501(c)(3) organizations. Non-501(c)(3) organizations, like 501(c)(4) social welfare organizations or 501(c)(6) trade associations, will no longer have to report the donors’ names and addresses on Schedule B. Schedule B…
Update: Tax Cuts and Jobs Act’s Impact on Tax-Exempt Organization
Despite all the attention around the Tax Cuts and Jobs Act (TCJA), many questions remain unanswered with respect to the new tax law enacted in December. Among the most commonly asked questions is whether post-December 31, 2017 parking/commuting expense payments made by employers from employee salary deferrals are unrelated business income (UBI). While an Internal…
Tax Cuts and Jobs Act’s Impact on Tax-Exempt Organizations
The newly passed Tax Cuts and Jobs Act (the Act) was sent to the President for signature yesterday and is expected to be signed into law in early January. The Act contains many provisions (most taking effect in 2018) that impact tax-exempt organizations. There will undoubtedly be comprehensive analyses addressing the changes followed by guidance…
Monitoring Tax Reform for Our Clients
With last week’s release of the Senate package and the House of Representatives voting today on their bill, Congress remains intent on passing tax reform legislation before the end of the year. Gelman, Rosenberg & Freedman CPAs (GRF) is monitoring developments closely and we will keep clients informed as more clarity emerges around the changes…
Grace Period for Implementation of the New Procurement Standards Should Not Delay Your Organization’s Preparation
Announced last week, OMB has provided an additional one-year postponement for implementation of the new procurement standards set forth under Uniform Guidance, Title 2, CFR 200. With the grace period extending through December 25, 2017 for non-Federal entities, the new implementation date will start for fiscal years beginning on or after December 26, 2017. Click here for…
New Regulations to Notify the IRS of Intent to Operate Under Sec. 501(c)(4)
Newly created and certain existing 501(c)(4) social welfare organizations must now file a notice with the IRS. Generally, 501(c)(4) organizations are not required to file Form 1024 to seek tax-exempt status; they may “self-declare”. As a result, until a self-declared 501(c)(4) filed a Form 990, the IRS had no record of its existence. The Protecting…