District of Columbia Nonprofit Corporation Act of 2010- Resources
The 2010 Nonprofit Corporation Act has the potential to affect many tax-exempt organizations in the District of Columbia. While these changes do not have direct auditing/tax implications, the law may significantly impact an organization’s legal structure and governance. Accordingly, we have provided website links to analyses of the Act by four local law firms. Please…
The New IRS Checklist for Examination of Exempt Organizations
In December 2009, the IRS issued a new checklist for agents who examine tax exempt organizations. According to the IRS, the checklist is to be used “to capture data about governance practices and the related internal controls of organizations being examined. The data will be included in a long-term study to gain a better understanding of the…
IRS Urges Nonprofits to File Tax Returns Even Though Deadline Has Passed
As many of you know, the deadline for filing Form 990 (or Forms 990-EZ or 990-N) by nonprofit organizations is four and a half months after year-end. For calendar year organizations, these returns were due May 17, 2010. What you may not know is that this is the first year in which an organization could…
IRS Offers Guidance and Relief on Health Coverage Reporting Requirements
The IRS has issued interim guidance to employers on informational reporting on each employee’s annual Form W-2 of the cost of health insurance coverage they can sponsor for employees. The IRS has emphasized that the new reporting is for employees’ information only and does not make employer-provided health coverage taxable. The IRS announcement was made…
IRS Increases Mileage Rate to 55.5 Cents per Mile
In response to higher fuel prices, the IRS has increased the optional standard mileage rates for the last six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The rate will increase to 55.5 cents a mile for all business…
IRS Form 8955-SSA Deadline Extension for Employee Benefit Plans
Extension Deadline for Form 8955-SSA The IRS has extended the deadline for 2009 and 2010 filings of Form 8955-SSA for employee benefit pension and savings plans subject to ERISA Section 203 vesting rules. The original August 2011 filing deadline has been extended to the later date of January 17, 2012 or the date that would…
New IRS Notice Clarifies Tax Treatment of Employee Mobile Phones
New IRS Notice Clarifies Tax Treatment of Employee Mobile Phones IRS Notice 2011-72, issued Wednesday, September 14, removes a recordkeeping burden long perceived as onerous by employees who have been provided with cell phones and other mobile telecommunication devices by employers. For many years, these devices were treated as “listed property,” a tax classification which required employees…
IRS Offers Employers Tax Relief through VCSP Program
IRS Offers Employers Tax Relief through VCSP Program The IRS recently announced a new program–the Voluntary Classification Settlement Program (VCSP)–that offers employers partial relief of potentially significant tax, penalties and audit costs for prior years’ misclassification of their workers as independent contractors. Independent Contractor Classification Since employers do not have to withhold income tax or pay Social…