IRS answers questions on tax-exempt executive compensation
The IRS released Notice 2019-09 providing guidance to assist taxpayers in implementing new executive compensation rules under section 4960. The Notice provides a number of definitions and clarifies a number of items. An IRS notice is not enforceable guidance, but this Notice can be relied upon until further guidance is issued.

What is a Virtual Accountant?
Nonprofits are increasingly choosing to outsource to virtual accounting firms that provide extensive expertise and allow organizations to focus on their core competencies.

IRS releases guidance on qualified transportation benefit deductions
The IRS provides guidance to assist in determining expenses for parking fringe benefits for purposes of section 274(a)(4) and 512(a)(7). The qualified transit pass expenses, qualified van or transit bus expenses and qualified parking expenses are generally still excluded from employee income under section 132(f), but to the extent the employer provides these benefits as defined in section 132(f), the section 274(a)(4) rules apply to limit the employer’s tax deductions.

Wearable tech: Good for employee health care and good for business
Wearable tech’s transformative power promotes healthy lifestyles, lowers insurance coverage spending and increases employee engagement. Fitbit recently announced that their newest device, Inspire, will be available only to “corporate, wellness, health plan and health systems partners and customers of their organizations, participants and members.” This announcement comes on the heels of tech giant Apple’s publicized relationship with health insurer Aetna to offer Attain, an app that rewards users with prizes if they achieve certain health care goals.

Tax issues arise when employers pay employee business travel expenses
Business travel arrangements require employers to carefully analyze and determine proper tax treatment for employees. Most employers pay or reimburse their employees’ expenses when traveling for business. Generally, expenses for transportation, meals, lodging and incidental expenses can be paid or reimbursed by the employer tax-free if the employee is on a short-term trip.

 

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP. So, in addition to articles from our own staff, we include regular updates from RSM on the latest insights for nonprofit organizations.
Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
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