Tax Tips for Higher Education

Added Benefits to Hiring Qualified Veterans

Added Benefits to Hiring Qualified Veterans

ISSUE: Tax-exempt organizations have an oft-overlooked tax credit opportunity available for hiring qualified veterans. SITUATION: Marathon Bible College (MBC) 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…

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New Code Section 512(a)(6) – UBIT “Silo-ing”

New Code Section 512(a)(6) – UBIT “Silo-ing”

The “Tax Cuts and Jobs Act” includes a well-publicized provision whereby UBTI shall be computed separately for each trade or business.  Our admonition to Treasury is “KISSM” – Keep it Simple, Sir/Madam. SITUATION: Denali Christian College (DCC) 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.

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Updated IRS Depreciation Rules

Updated IRS Depreciation Rules

The IRS has released a fact sheet that highlights new depreciation rules and related expense rules from the “Tax Cuts and Jobs Act” (TCJA)…Saltwater Christian College (SCC) is a private college exempt under Internal Revenue Code section 501(c)(3) and section 170(b)(1)(A)(ii).  SCC has unrelated business income from three sources.

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Where Can You Find Sample Policies?

Where Can You Find Sample Policies?

Sometimes, it can be hard to find good resources such as sample policies, procedures, etc. A new website is setting out to help institutions find sample policies that they might utilize…“Where on the web can I find free copies of good policies like Conflict of Interest, Whistleblower, Document Retention, Investment, etc?”

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The Audit Committee and the Control Environment

The Audit Committee and the Control Environment

ISSUE
One of the important aspects of adhering to internal control best practices might be the operation an “audit committee.”

SITUATION
Marathon Bible College (MBC) is a private college exempt under Internal Revenue Code section 501(c)(3) and section 170(b)(1)(A)(ii).  They are required to file Form 990 annually.

Their Controller calls to ask about an “audit committee of their board.”

We tell them that an audit committee is certainly a “best practice” and we admonish them to develop a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant.

Audit Committees are asked about on Form 990 and figure heavily into descriptions of your internal control system and environment.

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