The U.S. Internal Revenue Service (IRS) quietly added two new questions and answers regarding virtual currency donations to its answers to Frequently Asked Questions on Virtual Currency Transactions (FAQs) on December 26, 2019. The two new answers address the responsibilities
Not For Profit/Exempt Organizations Blog
The Not For Profit/Exempt Organizations Blog, published by Proskauer Rose LLP, focuses on legal developments affecting nonprofit and tax-exempt entities. It covers topics such as compliance with diversity, equity, and inclusion (DEI) regulations, tax law changes impacting charitable organizations, unrelated business taxable income (UBTI) issues, and litigation involving nonprofit status and exemptions. The blog also addresses regulatory updates, governance challenges, and operational considerations for nonprofits, including healthcare providers and educational institutions. It provides analysis of court decisions, legislative proposals, and administrative guidance relevant to exempt organizations and their tax treatment.
Latest from Not For Profit/Exempt Organizations Blog - Page 3
IRS Provides Guidance on Unrelated Business Income Tax Refunds
On Friday, December 20, 2019, President Trump signed into law government funding legislation for the 2020 fiscal year that includes a provision repealing Section 512(a)(7), commonly referred to as the “parking tax,” with retroactive effect to the date of…
Simplification of the Net Investment Income Tax for Private Foundations
On December 20, 2019, President Trump signed into law changes to the private foundation excise tax on net investment income under Section 4940 of the Internal Revenue Code.[1]
For purposes of Section 4940, net investment income is the excess…
Repeal of Unrelated Business Income Tax on Qualified Transportation Fringe Benefits
Late on Friday, December 20, 2019, President Trump signed into law government funding legislation for the 2020 fiscal year that includes a provision repealing Section 512(a)(7), commonly referred to as the “parking tax.”[1]
Section 512(a)(7) was enacted pursuant to…
New York State Codifies the Johnson Amendment
On October 23, 2019, Governor Andrew M. Cuomo, signed legislation incorporating the federal Johnson Amendment into New York law. As previously described, the Johnson Amendment denies tax-exempt status under section 501(c)(3) of the Internal Revenue Code (the “Code”) to…
Proskauer’s 24th Annual Trick or Treat Seminar
Proskauer’s 24th Annual Trick or Treat Seminar was held on Wednesday, October 31 and discussed timely topics and best practices specifically tailored to the not-for-profit community.
The seminar discussed:
- Protect Yourself: A Practical Guide to Strategic Risk Management and Insurance
…
Deadline Approaching for 403(b) Sponsors to Review Plan Documents for Compliance
Section 403(b) plans must be maintained pursuant to a written plan document that meets detailed requirements set forth in IRS regulations. If a plan contains a defect as to form (e.g., a provision does not comply with the regulations or…
A Good 403(b) or a Bad 403(b)? A Question IRS Auditors Look to Answer
For a discussion of section 403(b) plan compliance, please see the post on Proskauer’s Employee Benefits & Executive Compensation Blog.
Parsonage Exclusion Found by Seventh Circuit to Be Constitutional
On March 15, 2019, the U.S. Court of Appeals for the Seventh Circuit held in Gaylor v. Mnuchin that the tax exemption for “ministers of the gospel” (defined below) under Section 107(2) of the Internal Revenue Code (the “Code”) does…
Five Excise Tax Tips For Tax-Exempt Employers
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…