Tax Tips for Higher Education

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Qualified Educational Assistance

Qualified Educational Assistance

ISSUE:

A qualified tuition education assistance “program” could be something that would benefit your institution – and Congress may be sweetening it!

SITUATION:

Troas Bible College (TBC) is a private college exempt under Internal Revenue Code section 501(c)(3) and section 170(b)(1)(A)(ii).  TBC has a written “tuition assistance program” under Internal Revenue Code section 117(d), but has not contemplated the potential benefits of also having a “Section 127” plan, which could cover graduate-level courses.

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Qualified Tuition Reductions

Qualified Tuition Reductions

ISSUE:

A qualified tuition reduction “program” must meet certain criteria in order to pass IRS muster.

SITUATION:

Troas Bible College (TBC) is a private college exempt under Internal Revenue Code section 501(c)(3) and section 170(b)(1)(A)(ii).  TBC has a written “tuition assistance program” under Internal Revenue Code section 117(d).

The TBC Controller has recently attended a workshop on these programs at a conference and is concerned about TBC’s “plan.”  They ask us about graduate level courses and about “non-discrimination” requirements.

Section 117 allows tuition assistance for degree candidate employees (and some “family members”) under a written plan for courses under the graduate level.  There is an exception for “grad assistants.”

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Accounting Period Change

Accounting Period Change

ISSUE:

How does an organization that does not file a Form 990-series return inform the IRS of a change in accounting period?

SITUATION:

Idaho Bible College & Seminary (IBCS) is a private college exempt under Internal Revenue Code section 501(c)(3) and section 170(b)(1)(A)(ii).  IBCS is also classified by the IRS as an “integrated auxiliary of a Church as described in section 1.6033-2(h) of the Treasury Regulations” and, therefore, not required to file Form 990.

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The Volunteer Labor Exclusion

The Volunteer Labor Exclusion

SSUE:

Any business activity in which substantially all the work is performed for the organization by volunteers – without compensation – is not an unrelated trade or business.

SITUATION:

Troas Bible College (TBC) is a private college exempt under Internal Revenue Code section 501(c)(3) and section 170(b)(1)(A)(ii).  TBC is located in a downtown area. 

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Hurricane Relief (Part 2)

Hurricane Relief (Part 2)

Let’s continue in prayer for all of those affected by the recent hurricanes.

ISSUE:

An “employer-sponsored donor advised fund” may be just the answer for institutions beleaguered by qualified disasters.

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).  MBC incurred significant damage to their campus from Hurricane Irma.  All of their employees had property damage – but, thankfully, no injuries.

As a result of the disaster, MBC has several tax-advantaged options that they might employ to assist/benefit their employees’ families who were victims of the hurricane.

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