Tax Tips for Higher Education
Individual Tax Identification Number (ITIN)
ISSUE: On September 10, 2021, the IRS updated its frequently asked questions (FAQs) on the procedure for obtaining an Individual Tax Identification Number (ITIN). SITUATION: Troas Bible College (TBC) is a private college exempt under Internal Revenue Code...
Employee Retention Credit (ERC): Alternative Quarter Election
Section 2301 of the CARES Act, as originally enacted, provides for an employee retention credit for eligible employers, including tax-exempt organizations, that pay qualified wages, including certain health plan expenses, to some or all employees after March 12, 2020, and before January 1, 2021. Section 206 of the Relief Act adopted amendments and technical changes to section 2301 of the CARES Act for qualified wages paid after March 12, 2020. Section 207 of the Relief Act, which is prospective only, further amends section 2301 of the CARES Act to extend the application of the employee retention credit to qualified wages paid after December 31, 2020, and before July 1, 2021, and to modify the calculation of the credit amount for qualified wages paid during that time. Subsequent rulings extended the ERC through December 31, 2021.
PPP Loan/Grant Amounts NOT Included in Gross Receipts for ERC
ISSUE: Revenue Procedure 2021-33 provides a safe harbor permitting employers to exclude certain amounts from gross receipts solely for determining eligibility for the ERC. These amounts are: The amount of the forgiveness of a Paycheck Protection Program...
V.A. Benefits – New Isakson/Roe Section 1018 Requirements
Section 1018 of Public Law 116-315, Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020, adds new requirements for educational institutions participating in the educational assistance programs of the Department of Veterans Affairs (VA). These new provisions became effective June 15, 2021 and will apply to Institutions of Higher Learning and Non-College Degree institutions beginning August 1, 2021. Many of the requirements are consistent with the requirements of the Principles of Excellence, currently in Executive Order 13607; however, there are requirements in addition to those embodied in the Principles of Excellence which schools must also satisfy to maintain approval for GI Bill® participation.
IRS: Erroneous Notices of Non-filing – Form 8868
The IRS is experiencing delays in processing paper returns, including Form 8868, Application for Extension of Time To File an Exempt Organization Return.