As we have previously discussed, the 2017 tax reform act created a new excise tax under section 4960 of the Internal Revenue Code that will affect many tax-exempt employers. The tax is 21% of certain compensation and can be
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IRS Releases Interim Guidance on New Excise Tax on Executive Compensation Paid by Tax-Exempt Organizations
On December 31, 2018, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (the “IRS”) released Notice 2019-09 (the “Notice”), which provides interim guidance under Section 4960 of the Internal Revenue Code.
Very generally, Section 4960 imposes a…
Inclusion of Qualified Transportation Fringe Benefits in UBTI: Guidance, Relief, and Rumors of Possible Repeal
December 10, 2018 saw significant activity with respect to Section 512(a)(7) of the Internal Revenue Code (the “Code”), which requires tax-exempt employers to increase their unrelated business taxable income (“UBTI”) by amounts paid or incurred for qualified transportation fringe benefits…
IRS Announces Relief from the “Once-In-Always-In” Requirement for Excluding Part-Time Employees Under 403(b) Plans
Last week, the IRS released Notice 2018-95 to provide transition relief to 403(b) plans that improperly excluded certain employees. Specifically, Notice 2018-95 targets employers that may have erroneously excluded part-time employees from eligibility to make elective deferral when the employees…
Proskauer’s 23rd Annual Trick or Treat Seminar
Proskauer’s 23rd Annual Trick or Treat Seminar was held on Wednesday, October 31.
The Seminar discussed:
- Sexual Harassment in the #MeToo Era
- Taxing Times for Tax-Exempt Organizations: The Impact of Tax Reform on Executive Compensation and Employee Benefits for Tax
…
Tax-Exempts May Limit Fund Investments Pursuant to New IRS Guidance on UBTI
On August 21, 2018, the Internal Revenue Service (“IRS”) released Notice 2018-67 (the “Notice”), addressing issues relevant to tax-exempt organizations arising under new Section 512(a)(6) of the Internal Revenue Code (the “Code”), promulgated pursuant to the 2017 U.S. tax legislation…
IRS Provides Guidance on Searching for Missing 403(b) Participants
On February 23rd, the IRS issued a memorandum to its examiners instructing them not to challenge a 403(b) plan for failing to satisfy the required minimum distribution (“RMD”) rules with respect to missing participants or beneficiaries if the plan sponsor…
Updates for Tax-Exempt Organizations from the Senate Bill
Early on December 2, 2017, the Senate passed the Tax Cuts and Jobs Act (the “Senate Bill”). This blog entry describes certain provisions of the Senate Bill that would have the most significant impact on the nonprofit community, including important…
Recaps from Proskauer’s 22nd Annual Trick or Treat Tax Exempt Seminar
Proskauer’s 22nd Annual Trick or Treat Seminar was held on Tuesday, October 31.
The Seminar discussed:
- New Rules for Tax-Exempt Bond Compliance
- The Excess Benefit Transaction Rules
- Hot Topics in Employee Benefits and Executive Compensation for Tax-Exempt Organizations
- Partnership Audit
…
Updates for Tax-Exempt Organizations from the Senate Markup to the Tax Cuts and Jobs Act
Over the last several days, there have been significant developments relating to the Tax Cuts and Jobs Act, the pending tax reform legislation in Congress.[1] On Thursday, a detailed summary of the Senate Finance Committee’s proposal was released (the…