December 23, 2019
The Tax Cuts and Jobs Act, as passed in 2017, imposed additional tax obligations on exempt organizations. Specifically, IRC Sec. 512(a)(7) required tax-exempt organizations to increase Unrelated Business Taxable Income (“UBTI”) by the amount of parking and qualified transportation fringe (“QTF”) benefits that were disallowed as a deduction under IRC Sec. 274.
The resulting tax consequences for the tax-exempt community created many compliance headaches and reduced exempt organizations’ ability to focus resources on exempt functions and activities.
On December 20, 2019, the President of the United States of America, signed the ” Further Consolidated Appropriations Act, 2020″ (H.R. 1865) into law.
As written, this act repeals IRC Sec. 512(a)(7), eliminating the requirement for exempt organizations to include parking and transportation fringe benefits as part of their UBTI calculations.
January 4, 2019
In early December, the District of Columbia Office of Tax and Revenue (OTR) started sending letters to DC exempt entities advising them that they needed to renew their tax exemptions. The exemptions will start to expire in 2019 and OTR will require all exempt entities to renew their exemptions every five years or be reclassified as fully taxable.
This renewal requirement applies to all DC organizations exempt from DC personal property, income/franchise and sales/use taxes, including nonprofits, unions, benefit plans, PACs, funds/foundations etc. Each exempt entity has its own credentials to log onto its account via OTR’s online tax portal, MyTax.DC.gov. Therefore, clients will need to go online to complete the renewal process, as OTR will reportedly not accept paper reapplications. It remains unclear as to whether exempt entities who have not yet received a renewal notice from OTR are able to go ahead and renew now if they wish.
February 14, 2019
Under the District of Columbia Universal Paid Leave Amendment Act of 2016 (“Paid Leave Act”), all covered employers will be required to contribute an amount equal to 0.62% of the wages of each of its covered employees to the Universal Paid Leave Implementation Fund beginning July 1, 2019. The contributions will be collected electronically by payroll tax from the Department of Employment Services (DOES), Office of Paid Family Leave (OPFL) on a quarterly basis, through an addition to the quarterly unemployment payments tax payment. Self-employed individuals who opt-in to the program during the first 90 days after July 1, 2019, will being paying the contributions on October 1, 2019. The District will begin administering paid leave benefits on July 1, 2020.
December 13, 2018
Prior to the adoption of the Tax Cuts and Jobs Act (“the Act”), fringe benefits provided by an employer to employees for their personal transportation, such as commuting to and from work, were generally excluded from the employees’ income and were deductible by the employer under Internal Revenue Code Sec. 132 (f) and Regulations §1.132-9(b). This applied to both de minimis transportation benefits (defined as any local transportation benefit you provide to an employee if it has so little value that accounting for it would be unreasonable or administratively impracticable) and qualified transportation benefits (QTFs), which comprised:
January 26, 2017
Beginning in 2017 (reporting for the 2016 calendar year), the annual due date for the Foreign Bank and Financial Accounts (FBAR) is April 15 to coincide with the federal income tax filing season. This date change was mandated by the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, Public Law 114-41 (the Act).
July 29, 2016
On July 11, 2016 the Department of Labor (DOL), in coordination with the Internal Revenue Service (IRS) and the Pension Benefit Guaranty Corporation (PBGC) (together called the Agencies) announced their proposed revisions to the Form 5500 Annual Return/Report series.
July 29, 2016
On July 1, 2016, the Office of Management and Budget approved the Office of Labor-Management Standards’ (OLMS) revisions to the information collection request 1245-0003, as well as the Form LM-2, LM-3, and LM-4 Labor Organization Annual Report instructions.
June 29, 2016
The American Institute of Certified Public Accountants (AICPA), recently published a detailed listing of original and extended tax return due dates. These deadlines are generally effective for taxable years starting after December 31, 2015 (2016 tax returns prepared during the 20174 tax filing season).
February 3, 2016
The Illinois Department of Revenue (IDOR) is announcing they do not anticipate releasing individual income tax refunds for the 2016 tax filing season until March 1, 2016. The decision comes as fraud prevention efforts from last year’s tax season illustrate the positive impact that additional delays and scrutiny have had in combating tax return fraud and identity theft.
December 30, 2015
The Internal Revenue Service extended the deadline for insurers, self-insuring employers, and certain other providers of minimum essential coverage to furnish information statements Form 1095-B, Health Coverage and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage to individuals from February 1, 2016 to March 31, 2016.
October 6, 2015
The DC Transit Ordinance is a new regulation requiring employers with 20 or more employees in Washington D.C. to offer pre-tax transit benefits in one of three ways. Read this article to learn more about its impact on your organization.
August 27, 2015
As retirement plans have seen increasing number of regulatory changes enacted by the Department of Labor (DOL) and Internal Revenue Service (IRS) in recent years, it would be beneficial to review your fiduciary responsibilities under the Employee Retirement Income Security Act (ERISA) guidelines.
July 15, 2015
Starting in 2015, employers, plans, and insurers with 50 or more full-time or full time equivalent employees are subject to the new Affordable Care Act requirements for additional reporting and taxes. The Internal Revenue Service (IRS) created Form 1095-B Transmittal of Health Coverage Information and Form 1095-C Employer-Provided Health Insurance Offer and Coverage, for this additional reporting. The IRS will use this information to determine if an employer owes additional taxes for lack of coverage or if individuals have minimum essential coverage and are not required to pay additional taxes.
July 15, 2015
The upper chamber of the Canadian Parliament has passed Bill C-377, which amends the Income Tax Act to require that labor organizations and labor trusts provide significant financial information for public disclosure. The new law’s requirements, which will look familiar to labor organizations in the United States, will force public- and private-sector unions to disclose financial activity in far greater detail to the Canada Revenue Agency than has previously been required.
June 18, 2015
Now mandatory in the 2015 tax year, Form 1095-B is a health insurance tax form which reports participants and dependents covered as well as the type and period of coverage. The form must be completed in early 2016, to report data for 2015. Form 1095-B is used to verify on participant’s individual tax return that they and their dependents have at least minimum qualifying health insurance coverage.
June 15, 2015
Whether it is your first audit, first time being the main contact for the audit or you are a seasoned audit veteran, the thought of an audit can be daunting. Not only are you being asked to complete your daily duties but you are also be asked to devote a plethora of time and effort to support your entities financial position for the year. In order to improve planning for an audit, follow the COOP model.
February 19, 2015
Have you reviewed your expense reimbursement policy recently to determine if it adheres to the Internal Revenue Service (IRS) and/or Department of Labor (DOL) guidelines? With the start of the New Year, now is a great time to review your policy and determine whether it is compliant.
February 5, 2015
Over ten years have passed since the Department of Labor (DOL) significantly revised the Form LM-2, Labor Organization Annual Report. This article provides a refresher on how to categorize disbursements and officer/employee time for Schedules 15 through 19.
February 2, 2015
Tired of having to shuffle through endless numbers of paper receipts? Wish you could just click a few buttons to find all the information you needed? Well luckily, the Office of Labor-Management Standards (OLMS) allows you to do this.