CPAs and Advisors with Your Growth in Mind

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.

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Audit Guides Help IRS Review Nonprofit Organizations

The Internal Revenue Service (“IRS”) wants to help nonprofits and their tax preparers avoid the possibility of being audited. Available for download on the IRS website are Audit Technique Guides for nonprofits exempt under IRC Section 501(c)(3) and other IRC Section 501(c) sub-sections. Used by IRS staff members, the guides give insight into what the IRS examines when deciding whether to audit tax-exempt organizations. More on the IRS’ Audit Technique Guides is available on the Nonprofit Quarterly website. Need help with audits? Contact a member of our Education or Nonprofits group.

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Help! The Government Took My Money and Gave it to a State!

By: John Ford , Senior Consultant, Government Contractor Services Group We all know from folk lore that the IRS can seize property from a taxpayer if the taxpayer is delinquent in paying its Federal taxes. However, did you know that the government can seize money from a taxpayer and pay it to a state? Cherry Bekaert’s GovCon Group recently had a client receive a notice that funds had been withheld on a contract with the Department of State related to a state income tax liability that the client and our tax department had received no prior notices of delinquency. After the outrage. Read More.

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Employee or Contractor: Did you do the Research?

By: Anne Yancey , Director, State Credits & Incentives There is no single test for determining whether a worker is an employee or an independent contractor and for employers, the lines are often blurred in making the distinction. In the eyes of the Internal Revenue Service (“IRS”), proper worker classification is mainly determined by the degree of control a company has over the employee. In contrast, the Department of Labor utilizes an economic reality test. Given the changing dynamic of today’s workforce, employers must singly carefully consider the facts of each situation in making the determination. An incorrect determination could have severe. Read More.

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