Tax Tips for Higher Education
More on Excess Parachute Payments – “Accelerated Payments”
The IRS Code Section 4960 – the “Million Dollar Tax” – is very complicated. Your school may never pay a worker $1MM a year, but institutions should be aware of the “excess parachute payments” codicils of the law.
It’s “Gift Week!”
Most business gifts are tax deductible. But if we are not diligent and careful, contribution receipting, gift acceptance, donor gifts, etc. can be at least as dangerous as swimming through shark infested waters.
Pending Repeal Legislation?
Congress keeps stumbling around in vain attempts to “help undo the harm the 2017 tax law is causing nonprofits.” Bills continue to be introduced to repeal the “Parking Tax,” silo-ing, and other foibles. In working with the accounting team at MBC on their audit and Form 990 prep lists, they asked about where Congress was on potentially repealing the “Parking Tax” and fixing other broken areas of the new tax law…
A 501(c)(3) “Common Paymaster” Might Need to Keep an Eye FUTA Taxes
What happens when a 501(c)(3) school acts as a common paymaster for a related organization that is not a 501(c)(3)? Might they owe FUTA taxes? 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. As part of their ongoing “Revenue Enhancement Opportunity” projects, a few years ago, SCC set up a related 501(c)(4) that performs lobbying and other activities…
Grants and Scholarships to “Insiders”
Discerning who might be “interested persons” for purposes of Schedule L (Form 990) can be challenging. Tuition remission and/or scholarships to “insiders” or their “family members” are reported at Schedule L, Part III…