Nonprofit Update: April 2019

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
http://rsmus.com/our-insights/newsletters/muse.html

Tax Update: April 2019

Trending in Tax

Wayfair, sales tax, and economic presence laws
Economic sales and use tax nexus laws are gaining momentum as states make a direct challenge to traditional physical presence standards.

District Court decision uploads imposition of willful FBAR penalty
Court imposes substantial “willful” penalty for failure to file FBAR where taxpayer fails to consult tax advisor regarding foreign account.

Structuring deals in the era of TCJA and BEPS
Legislation relating to the Base Erosion and Profit Shifting (BEPS) Action Items has resulted in expanded tax due diligence engagements.

Top tax considerations for manufacturers in 2019
Tax planning in an evolving marketplace can be challenging. What are the top tax issues and new rules that manufacturers should focus on?

man point to a printed chart with computer and calendar out

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

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 (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: March 2019

Trending in Tax

U.S. Supreme Court to hear Kaestner trust tax nexus case
High court to decide whether in-state beneficiary of nonresident trust is sufficient for the Due Process Clause. The U.S. Supreme Court will revisit state tax nexus for the second year in a row after granting North Carolina’s petition for certiorari in North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust.

Opportunity zone investors can’t forget about local tax incentives
To make opportunity zone projects financially viable, developers need to consider state and local tax credits beyond QOZ incentives. Numerous programs offer developers tax abatements, deferrals and incentives in the same economically distressed areas as QOZs. These extra incentives will make opportunity zone projects more attractive to investors and may bring new capital deeper into the areas that need it most.

New election may provide enhanced interest deduction to multinationals
Special election in new interest regulation may benefit CFCs. The Tax Cuts and Jobs Act (TCJA) enacted a limit on the deductibility of business interest expense (the section 163(j) limitation).

What US companies need to know about Making Tax Digital
US companies with VAT obligations in the United Kingdom should understand and prepare to comply with Making Tax Digital. The transition to Making Tax Digital represents one of the most fundamental changes to the United Kingdom (UK) tax system in a generation.

Supreme Court of the United States to hear Kaestner tax nexus case

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

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 (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Nonprofit Update: February 2019

Determining an appropriate reserve level for nonprofit organizations
Setting a financial reserve level is a key process for a nonprofit organization, providing necessary funding to continue operations during a host of potential challenges or taking advantage of strategic opportunities. However, many nonprofits do not have a defined process to establish reserves, exposing the organization to undue risks. In an environment of economic and political uncertainty, implementing an effective method to set reserves is critical to long-term organizational sustainability.

Proposed accounting alternatives for not-for-profit entities
The Financial Accounting Standards Board has proposed accounting alternatives for not-for-profit entities for goodwill and certain identifiable intangible assets. The Financial Accounting Standards Board recently issued a proposed Accounting Standards Update (ASU) that, if finalized, would extend the scope of two private company accounting alternatives to not-for-profit entities – the accounting for goodwill and the accounting for identifiable intangible assets in a business combination. Also, in a business combination, a not-for-profit entity would have the option to subsume into goodwill and amortize certain customer-related intangible assets and all non-compete agreements.

Setting up a security steering committee
In many cases, companies isolate security into its own segment. Responsibilities are typically split between low-level IT staff, who must juggle break/fix situations with technology investments, as well as security tasks. However, this scenario often results in security best practices being overlooked for the sake of convenience, and little alignment between the IT group and the rest of the organization regarding security decisions.

District of Columbia government issues notices concerning exemption expiration
The notice states that over the 2019 calendar year the District of Columbia Office of Tax and Revenue (OTR) will begin to expire tax exemptions granted under District law.  The notice states that all exempt entities will be required to renew their exemptions or they will have their classifications changed to being taxable entities.

 

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. This includes regular updates on the latest insights for nonprofit organizations.

Tax Update: February 2019

Tax Reform

Final regs highlight actions for taxpayers using 20 percent deduction
Critical action items taxpayers need to take.


Trending in Tax

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.

Why we call it business transition planning
What is the secret to a successful business succession and transition for owners? It starts with a sound plan.

The gift tax exemption coast is clear. Time to go back into the water?
Knowing that there will be no loss of the benefit of using the higher exemption before 2026, we consider some ways and means of using it.

writing in note pad and calculator out

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

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 (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: January 2019

Tax Reform

New year, new law, new challenges
Complexity of the Tax Cuts and Jobs Act and technology delays at the IRS may force taxpayers to extend filings. At a minimum, taxpayers should be prepared to extend and file their returns later in the year, even if they have previously filed by the March or April 15 deadlines. Taxpayers should consult their tax adviser and make a plan to address the appropriate timing and additional steps necessary to file their 2018 returns.


Trending in Tax

Tax reform’s impact on business and professional services firms
Business and professional services firms face challenges due to tax reform, but there are opportunities to maximize the benefits, too.

Post-Wayfair misconceptions and technology companies
The Wayfair decision doesn’t just affect online retailers. Technology businesses must address resulting state sales taxes, too.

Tax deduction for pharmaceutical drug inventory
Enhanced tax deduction may be available for drug inventory contributions made to certain charitable organizations.

Nonqualified deferred compensation plan FAQs for employers
When setting up or managing nonqualified deferred compensation plans, employers should consider several key questions.

 

tax preparer typing on computer and using calculator

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

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 (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Nonprofit Update: December 2018

Foundations for Board Governance
Looking to increase the effectiveness of your nonprofit’s board? RSM’s guide highlights common problems and practical solutions related to board governance.

The evolving role of outsourcing within nonprofit organizations
Adjusting existing outsourcing strategies can help streamline service delivery and further increase efficiency and productivity.

Phishing awareness: Recognizing, addressing and avoiding threats
Phishing is one of the most common and most successful forms of cyberattack. Learn how to recognize the warning signs of potential phishing.

IRS issues guidance for determining UBTI for separate businesses
The IRS issued Notice 2018-67, providing interim and transition rules for determining UBTI for separate trades or businesses.
Read more.

Recorded webcast: Annual tax update webcast for nonprofit organizations
Learn about the current tax landscape for exempt organizations as well as look ahead to 2019.
View the webcast.

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. This includes regular updates on the latest insights for nonprofit organizations.

Tax Update: November 2018

Tax Reform

IRS releases proposed regulations for Qualified Opportunity Zones
The IRS released proposed regulations and a Revenue Ruling providing guidance on the newly created Qualified Opportunity Zones.

Investing in opportunity zones under the 2017 Tax Act
Taxpayers need to consider the tax benefits (deferral and possible exclusion) of investing realized gains in opportunity zone funds.

Cushioning the double-tax blow: the section 962 election
Double tax on dividends received by United States shareholders from foreign corporations addressed via TJCA through section 962.


Trending in Tax

Capital expenditures are not meeting expectations
How tax laws affect a company’s growth and cash flow depends on management’s priorities. The key is investing for the long term.

South Dakota v. Wayfair and manufacturing: 3 misconceptions debunked
The Wayfair decision goes beyond just retail and can impact manufacturers that sell exempt to resellers or distributors.


Tax Planning

2018 year-end tax considerations for businesses
A business guide to tax considerations for 2018 and beyond to help the middle market make smart, informed decisions.


Special Interest

The Real Economy: Volume 45
Developing markets face growing risks that present a clear and present danger to middle market firms.

tax expert using a calculator to calculate tax rates for qualified opportunity zones

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

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 (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Nonprofit Update: October 2018

Is there really a tax cut in the TCJA for exempt organizations?
Potential tax increase for exempt organizations hidden in the TCJA as part of the corporate tax cut.

Cybersecurity: Understanding the threat
Answer our five-question online assessment to help evaluate how your security program stacks up.

Changes to accounting for grants and contributions made and received
An overview of the clarifications to identifying reciprocal and nonreciprocal transactions and conditional and unconditional contributions.

Managing lease accounting for public and private higher education
Colleges and universities must adjust to the new level of judgments and estimates required under ASC 842 and GASB 87 lease accounting.

Recorded webcast: 2018 federal grants management update
Learn about current developments in grants management compliance requirements for nonprofits.

 

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. This includes regular updates on the latest insights for nonprofit organizations.

Tax Update: September 2018

Tax Reform
A closer look at the new pass-through deduction proposed regulations
Initial thoughts, observations and insights on several key areas of the new pass-through deduction proposed regulations.

Trending in Tax

Wayfair, sales tax, and economic presence laws
Economic sales and use tax nexus laws are gaining momentum as states make a direct challenge to traditional physical presence standards.

How to structure executive compensation in a competitive market
Effective executive compensation includes strategy, a mix of components and metrics closely aligned with the organization’s goals.

Ninth Circuit finds transferee liability in asset sale
Former shareholders found liable for tax from asset sale as transferees because the subsequent stock sale lacked economic substance.

 

Book on desk open with pen

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

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 (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.