AICPA Updates Two Technical Questions and Answers
The American Institute of Certified Public Accountants (“AICPA”) has amended the following Technical Questions and Answers (“TQA”) sections: Section 1200.01, “Disclosure of Revenues of an Agent”: The amendment this TQA Section acknowledges that the AICPA has yet to revise the TQA to reflect Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and ensuing ASUs amending Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The AICPA will delete this TQA upon ASU No. 2014-09’s effective date for all entities. Section 6910.25, “Considerations in Evaluating Whether Certain Liabilities Constitute ‘Debt’. Read More.
North Carolina Passes UBIT Provision on Nonprofit Parking
In case you missed it, the North Carolina Legislature last month passed a bill that decouples state unrelated business income tax (“UBIT”) on nonprofit parking from the Tax Cuts and Jobs Act. The provision safeguards tax-exempt organizations from being taxed an additional 3-percent state UBIT or filing state tax forms for employees’ parking expenses. The North Carolina Center for Nonprofits had asked state legislators to decouple the state tax code to prevent state income tax for expenses. North Carolina’s governor had previously vetoed a budget bill that featured the UBIT amendment, but the Legislature overruled the veto. Thus, the UBIT provision is effective. Read More.
Vermont Law School Professors to Lose Tenure
Facing financial problems for the past decade, Vermont Law School plans to move several tenured professors to untenured positions. The decision, which received unanimous support from the school’s Board of Trustees, is part of a restructuring process that could potentially impact over a dozen of the 20 tenured professors. Some professors have already negotiated their employment terms, which are likely contracts similar to many of the school’s full-time, non-tenured professors. Learn more about Vermont Law School’s restructuring plan on the Inside Higher Ed website.
First-Generation College Students More Engaged than Multi-Generational Students
New data from Campus Labs reveals that first-generation college students are more committed to education than multi-generational students. During its comparison of cognitive skills among both sets of students, first-generation students appear more engaged and prepared to handle college academics. Campus Labs also measured non-cognitive factors and discovered that first-generation students outscored their counterparts on educational commitment, self-efficacy, and academic and campus engagement. More on Campus Labs’ research is available on the Inside Higher Ed website.
NCAA Settles First Concussion Lawsuit on Trial’s Third Day
The first concussion-related lawsuit against the National Collegiate Athletic Association (“NCAA”) that was viewed as a gateway to several other cases being filed was unexpectedly settled at the trial’s third day. Deb Hardin-Ploetz alleged that the NCAA was responsible for the death of her husband Greg, who had suffered from dementia and other health issues related to his college football career. Hardin-Ploetz sought $1 million for negligence and wrongful death, and she believed that the NCAA was aware of the dangers of concussions and failed to warn Greg. More on this settlement is available on the Inside Higher Ed website.
Treasury Department and IRS Asked to Postpone New Taxes on Nonprofits
Nonprofits are asking for a delay concerning two provisions of the Tax Cuts and Jobs Act enacted earlier this year. The provisions, one relating to business income and the other on expenses incurred for employee transportation and parking, have caused confusion for several tax-exempt organizations since their applicability is uncertain without additional guidance from the Treasury Department and the Internal Revenue Service. Impacted organizations and nonprofit advocates have also submitted to both agencies extensive comments and requests for a delay in the taxes being implemented. More about the requested delay is available in the National Council of Nonprofits’ latest newsletter.