Tax Tips for Higher Education
IRS: Navigating the Charities and Nonprofits Website
ISSUE: Where can your institution go for training on not-for-profit or exempt organization issues? The web provides many excellent options. SITUATION: Marathon Bible College (MBC) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii). The Accounting Team at MBC calls us with a simple question. “We’ve got new volunteer board members who want to know more about 501(c)(3) organizations. Where should we aim them to start?”
2020 Form 990-T Draft: An Overhaul
For most institutions with fiscal years, your next Form 990-T filing (if applicable) will be on the 2019 form. Head’s up, the 2020 Form 990-T (draft) is organized differently from what we have seen annually since 1951.
The IRS Annual Per Diem Notice
Annually, the IRS issued updated amounts and information with respect to per diem rates for employee business expenses under I.R.C. Section 274(d). The 2020-2021 information has been released in the form of IRS Notice 2020-71…In Notice 2020-71, the IRS released the 2020-2021 (October 1, 2020 – September 30, 2021) updated per diem rates and list of high-cost locations. The per diem for travel to high-cost localities has decreased from $297 to…
What Do You Know about the SECURE Act?
The “Setting Every Community Up for Retirement Enhancement” Act of 2019 (SECURE Act) was signed into law on December 20, 2019. Forbes stated of this Act, “it is one of the most dynamic changes to retirement legislation since the Pension Protection Act of 2006, and addresses a wide variety of retirement planning topics.” However, with COVID-19 and other interesting phenomena of 2020, this law has seemingly been neglected. The IRS has recently issued guidance in a questions and answers format. It is worth reviewing.
Payroll Tax (Employee) Deferral?” Should Your Institution “Participate”?
On August 8, 2020, the President of the United States issued a Presidential Memorandum directing the Secretary of the Treasury (Secretary) to use his authority pursuant to section 7508A of the Internal Revenue Code (Code) to defer the withholding, deposit, and payment of certain payroll tax obligations, specifically the 6.2% employee withholding portion of some workers’ Social Security taxes.