On July 1, 2019, the President signed H.R. 3151, the Taxpayer First Act (the Act). The Act, while revenue-neutral, contains many provisions which improve services to taxpayers and change certain IRS administrative procedures.
As states move to streamline their tax and reporting systems, more filings are being offered for submission through electronic channels such as state business portals. The District of Columbia has been no stranger to this phenomenon, with multiple portals available through their Office of Tax and Revenue (OTR), the Department of Consumer and Regulatory Affairs (DCRA), and the Department of Employment Services (DOES).
Tax exempt organizations reapplying for exempt status in DC will no longer be required to submit an affirmation letter from the IRS confirming exempt status as part of their DC exemption application.
IRS is no longer mailing lists of parent and subsidiary accounts to central organizations (group ruling holders) for verification and return. Group ruling holders must now provide their own updates.
IRS issues interim guidance on the executive compensation excise tax required under the new tax law. Tax-exempt organizations that pay their top people over $1 million, or that provide generous severance packages are affected.
During the 2019 calendar year, the DC Office of Tax and Revenue (OTR) will begin to expire tax exemptions granted under DC law and will require all exempt entities to renew their exemptions or be reclassified as fully taxable.
This article provides an overview of the IRS’s recently issued guidance on the determination of the nondeductible portion of parking fringe expenses and unrelated business taxable income.
In this audio podcast, Tax Principal Debbie Kosnett and Senior Tax Manager Lisa Heller discuss what you need to know about the new unrelated business income silo rules.
The IRS has issued guidance on the business expense deduction for meals and entertainment related to the tax law changes of the Tax Cuts and Jobs Act (the Act). For nonprofit organizations, this affects only taxable activities such as meal and entertainment expenses associated with unrelated business income activities, and similar expenses for subsidiary entities such as taxable corporations or passthrough entities such as partnerships.
The IRS has issued long-awaited guidance regarding the calculation of unrelated business taxable income (“UBTI”) for exempt organizations under the new tax law. Although it is considered interim guidance, taxpayers may rely on the guidance given here until proposed regulations are issued.