Tax Tips for Higher Education

Donor Receipting – Is Email Okay?

Donor Receipting – Is Email Okay?

Historically, SCC has received a healthy percentage of their annual charitable contributions at the end of the calendar year. They are contemplating methods of streamlining and gaining efficiencies with their donor receipting process. Their CFO calls us to ask whether “email donor receipts” are acceptable with the IRS.

We tell them that new regulations – promulgated in 2018, updating the rules based upon the 2017 “Tax Cuts and Jobs Act” – state clearly that “written communication” for purposes of substantiating charitable contributions, “includes email.”

read more
Holiday Turkeys, Etc.

Holiday Turkeys, Etc.

You CAN give holiday gifts – including turkeys and/or hams – to employees. However, you should be aware of several issues that could make holiday gifts taxable – thus includable in your employees’ Form W-2.

read more
Filing Form 990-T and Paying the “Parking Tax”

Filing Form 990-T and Paying the “Parking Tax”

MBC has a “faculty & staff only” dirt (well, sand and crushed oyster shell) parking lot that has room for 22 vehicles. Three times a year, due to heavy rains, MBC has this parking lot graded to ensure proper drainage (akin to snow removal in other climes). The cost is $800 per grading – $2,400 annually. Convinced that they will ultimately owe $294 in tax ($2,400 – $1,000 x .21 for the ended June 30, 2019 – using the 2018 Form 990-T), their Controller calls us to ask about filing the Forms 990-T for 2017 and 2018. Note that for the six month period in 2018 (1/1/18 – 6/30/18) the amount would depend upon the amounts “paid or incurred” – how many times they graded the lot – but the tax rate would still be 21%. Also note that MBC’s Form 990-T (2017 form) is due November 15, 2018, but can be extended for six months using Form 8868.

read more
Form 1098-T Penalties – Still?

Form 1098-T Penalties – Still?

In order to comply with Internal Revenue Service (IRS) requirements to report tuition payments and other information on Form 1098-T, higher education institutions need to collect students’ taxpayer identification numbers (TINs). For most students, their TIN is their Social Security number (SSN). Students who are not eligible for an SSN may have an individual taxpayer identification number, known as an ITIN.

read more