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IRS Releases 2019 Form to Help Governments Report Fines, Penalties, and Other Amounts

A new 2019 form has been issued by the Internal Revenue Service (“IRS”) to help governments and government entities comply with a portion of the Tax Cuts and Jobs Act (“TCJA”) involving reporting fines or penalties. Form 1098-F requires governments and related entities to disclose fines, penalties, or other amounts assessed against a taxpayer. Government agencies and related entities must file Form 1098-F with the IRS and the taxpayer to report information about the fine or court settlement, whether one or multiple payments will be made, and the total payments actually made by the taxpayer. The new form also requires that reportable penalties. Read More.

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Cherry Bekaert Associates Attend IRS’ Opportunity Zone Hearing

Cherry Bekaert’s Rick Schneider, CPA , and Polly Hoxha, CPA, attended Thursday’s hearing on proposed regulations concerning investments in qualified opportunity funds. With standing room only, the hearing allowed the Internal Revenue Service (“IRS”) to review feedback on creating the regulations. During the five-hour meeting, over two dozen stakeholders expressed their concerns and offered suggestions for how to improve the rules of the program. Here’s a video of Polly  during a break at the hearing. If you’re seeking guidance on the Opportunity Zone program and want a recap of the IRS hearing, we invite you to attend one of our upcoming Opportunity Zone seminars .

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IRS Issues Parking Tax Preliminary Guidance

Back in December, the Internal Revenue Service (“IRS”) issued preliminary guidance that proposes clarifications to when nonprofit organizations should pay a 21 percent unrelated business income tax on employer expenses associated with employee parking. The notice tells nonprofits to use a four-step calculus for applying a value on taxable parking spaces. Another notice permits tax penalty waivers for nonprofits that did not submit quarterly estimated tax payments regarding those transportation benefits. The IRS had not issued any guidance or relief for applying the tax on other transportation benefits like subway or bus passes. Nonprofits impacted by the tax on parking expenses can submit comments. Read More.

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IRS Proposes Guidance for Taxing Highly Compensated Employees

After issuing preliminary guidance clarifying when nonprofits must pay the 21 percent unrelated business income tax related to employee parking, the Internal Revenue Service (“IRS”) has published Notice 2019-09 explaining when nonprofit employers should pay the 21 percent tax on employees with an annual compensation above $1 million. The preliminary guidance advises nonprofits to use the calendar year ending within their fiscal year to calculate the tax. In addition, nonprofits cannot avoid the tax by dividing highly compensated employees’ compensation between multiple related organizations. Comments on the noticed are due Tuesday, April 2.

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Cherry Bekaert to Host Webinar on Section 199A Deduction

Are you struggling to understand the section 199A pass-through deduction introduced by the Tax Cuts and Jobs Act? If so, Cherry Bekaert encourages you to join us this Friday for our webinar! Led by Ron Wainwright, CPA , and Andrew Kosoy, CPA , this live course will help you understand the pass-through deduction and nuances within Specified Service Trades or Businesses (“SSTBs”). The webinar will also cover Internal Revenue Service-issued (“IRS”) guidance on methods for calculating W-2 wages for section 199A. By the end of the webinar, you will be able to: Identify opportunities for the section 199A pass-through deduction; Consider the nuances in SSTBs; Describe IRS. Read More.

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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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