Tax Tips for Higher Education
IRS: Dirty Dozen Tax Scams
Each year, the IRS releases a list of tax scams to be especially wary of. Many times, these scams target the elderly and/or disadvantaged. The Service generally focuses on schemes that attempt to steal money and information from taxpayers. In 2020, we should be alert to potential fake emails, telephone calls, or websites using keywords such as “coronavirus,” “COVID-19,” and “stimulus” in various ways in attempts to steal personal information. The IRS always reiterates that it will never initiate contact with taxpayers via email or telephone about a tax bill, refund, etc.
IRS: Exempt Organizations Update
The IRS’ “Exempt Organizations Update” is both a webpage and an email subscription service that provides great, timely information and links to all types of tax law tips and guidance.
Spending HEERF Payments
ED has issued new guidance on how long institutions have to spend their Higher Education Emergency Relief Fund (HEERF) payments…There are basically three CARES Act subsections (18004(a)(1), (a)(2), and (a)(3)) that result in four “flavors” of HEERF funds…
Maturity Date of PPP Loans
PPP loans have been an oft-utilized opportunity for funding over the past few months. What about the maturity dates for “unforgiven” portions of PPP loans? SITUATION: Idaho Theological Seminary is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(i). Their Accounting Team was meeting with us on a video call to plan for their June 30, 2020 audit. They received their PPP funds on April 20, 2020. We’ve booked the PPP Loan as a Note Payable at fiscal year-end…
Form 990: New Order of O/D/T/KE/HCE
ISSUE:
One change in the 2019 Form 990 instructions has not received much fanfare – the re-ordering of the people listed at Part VII, Section A.
SITUATION:
Saltwater Christian College (SCC) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii). They are required to file Form 990 annually.