Many charities and foundations have sought to make grants to individuals and grants to businesses that have been severely impacted by the COVID-19 crisis. With close to 2.3 million confirmed cases of COVID-19 and about 45 million persons claiming unemployment in the U.S. over the past few months, the...
On April 24, 2020, the IRS and Treasury Department published proposed regulations under the law commonly referred to as the Tax Cuts and Jobs Act (TCJA) that provide guidance on how a tax-exempt organization subject to unrelated business income tax (UBIT) determines if it has more than one unrelated...
You’ll find a wealth of information provided by numerous organizations and law firms regarding COVID-19-related issues facing nonprofits, including this page from the NEO Law Group. Such issues include those related to new laws providing for paid employee leave, small business (and nonprofit) loans, and enhanced charitable contribution deductions....
I was interviewed on a special edition of Tony Martignetti Nonprofit Radio released today, April 4, discussing specific provisions of the Families First Coronavirus Response Act and the CARES Act that apply to nonprofits. You can listen here. Below are some highlights of the two Acts and links to helpful...
On Wednesday, the Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2.2 trillion emergency relief package in response to the COVID-19 pandemic. The CARES Act includes provisions for individual rebates, small business loans also available to nonprofits, unemployment benefits, and tax breaks. The bill next goes...
The IRS recently revised Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, as an online fill-in form that must be filed electronically. You can find an overview of the mechanics of e-filing Form 1023 here. For lawyers and tax practitioners, you may...
There were two big changes to tax laws affecting nonprofits sure to spread some cheer. They were part of a year-end appropriations act signed into law on December 20, 2019. Repeal of the “Parking Tax” The first change is a repeal of the nonsensical and unpopular tax on qualified...
The following are some of the highlights from Day One of the WCTEO 2019. Washington Update Sunita Lough (IRS, Deputy Commissioner for Services and Enforcement and former commissioner of the Tax Exempt and Government Entities division) discussed the IRS’s shift to enforcement with better data analytics (to select the...
The IRS Tax Exempt & Governmental Entities (TE/GE) division released its Fiscal Year 2020 Program Letter earlier this week. In the Program Letter, TE/GE Commissioner Tammy Ripperda explains: Each year, TE/GE works hard to deliver the best possible tax administration. It’s what we’re paid to do and what the...
We have recently seen an increasing number of transactions involving the sale of charitable assets to for-profit entities. While generally permissible if conducted properly, these sales raise a number of legal issues at both the federal and state levels that must be considered. Where the transaction is motivated in...