Tax Tips for Higher Education

Charitable solicitation registration requirements with states are a large area of noncompliance for Christian colleges, seminaries, and universities. Is your institution in compliance with regard to “state charitable registrations?

Many Christian colleges, seminaries, and universities wonder what – if any – requirements they may have at the multi-state and local tax jurisdiction levels.

Saltwater Christian College (SCC) is a private college that is exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii). Their CFO calls us to inquire about at what point SCC should start looking at potential tax filings in their state and states other than their own.

Colleges are “partnering” with a fast food restaurants to have a fundraising nights where members of the general public go to eat at the restaurant, get a discount, and have a portion of the proceeds go to the institution.

The Applicable Large Employer (ALE) status under the Affordable Care Act is something that needs to be considered on an annual basis – and it can sneak up on an institution. Remember you “qualify” in one year to be an ALE in the next year. In Capin Crouse’s 2016 “Tax Trends” survey 58.29% of respondents said they were an “ALE”.

Thousands of international students and scholars have been receiving IRS notices informing them that they are being denied withholding credit amounts when they file their Form 1040-NR. This situation has once again shed light on an oft-overlooked filing requirement of colleges – Form 1042-S.