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,…
Using Form 990 to Tell Your Story
Many nonprofit organizations overlook or under-estimate the impact of their Form 990 – it’s not just a tax return. When approached thoughtfully, it can become a valuable tool for telling your story and give your organization a powerful advantage with donors and other funders. See our recent blog post, Your Secret Nonprofit Fundraising Weapon: IRS…
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….
Prepare to Receive a Social Security Administration No-Match Letter
The SSA explains that it’s seeking to reconcile discrepancies between the names and Social Security Numbers (SSNs) it has on file with the names and SSNs that employers report. The purpose isn’t to support enforcement of immigration law, but rather to “properly post employees’ earnings to the correct record.” That’s an important distinction because if…
Your Secret Nonprofit Fundraising Weapon: IRS Form 990
By Richard J. Locastro, CPA, JD | Partner and Director of Nonprofit Tax In today’s rough-and-tumble political climate, economic pressures are mounting, fewer people are giving to charity1, and nonprofits are feeling the squeeze. Federal budget cuts have reduced government grants and other resources available to nonprofit organizations2. Perhaps more significantly, the Tax Cuts and…
Filing Changes for Nonprofits with Group Exemptions
By Janna Goudarzi, MST | Nonprofit Tax Manager When similar nonprofit organizations can demonstrate a defined relationship, they may qualify for a group exemption by the IRS. Under this scenario, a “central organization” is the parent organization that has one or more subordinates under its general control and is also sometimes referred to as an…