During these financially challenging times, many not-for-profit organizations have had to get creative to raise adequate revenue to sustain operations. But new activities, however well-intentioned, can lead to tax trouble. Your nonprofit risks exposure to the unrelated business income tax (UBIT) if it operates outside its usual charitable scope. Here’s how to avoid unwanted tax exposure. Regular and Unrelated For tax-exempt organizations, unrelated business income generally is defined as the profits generated by regular trade or business activities that aren’t… Read more ›
The CARES Act and Relief for Businesses Impacted by COVID-19 On Friday, March 27, President Trump signed into legislation the Coronavirus Aid, Relief and Economic Security Act (CARES) Act. The $2.2 trillion legislation represents the largest stimulus package in U.S. history—dwarfing the $800 billion package signed during the 2008 financial crisis—and provides a variety of economic relief measures to mitigate the impact of the coronavirus pandemic on American society. The Act provides for five options for businesses in search of relief,… Read more ›
On Friday, March 27, President Trump signed into legislation the Coronavirus Aid, Relief and Economic Security Act (CARES) Act. The $2.2 trillion legislation represents the largest stimulus package in U.S. history—dwarfing the $800 billion package signed during the 2008 financial crisis—and provides a variety of economic relief measures to mitigate the impact of the coronavirus pandemic on American society. Not-for-profits should be aware of certain parts of the CARES Act as it pertains to the impact of COVID-19 on their… Read more ›
CBM has published guidance for businesses that receive a notice from the IRS (Letter 226J) relating to penalties associated with compliance with the Affordable Care Act. Click here to read our guidance. Please also keep in mind the important deadlines below. Don’t Miss Early 2020 Due Dates February 28, 2020 – Paper copies of Forms 1094-C and 1095-C must be filed with the IRS by this date. Employers with less than 250 employees can paper file. March 2, 2020 –… Read more ›
The IRS is currently issuing the Letter 226J proposed employer-shared responsibility payment (ESRP) notice to businesses they suspect of having not complied with the 2017 tax-year Affordable Care Act requirements. The Letter identifies the amount of the proposed penalty that the business would be responsible for paying— an amount which can be steep. CBM has seen penalty amounts ranging from $3,160 to over a million dollars. CBM advises businesses that receive such a letter to respond promptly, especially since Letter… Read more ›
The IRS has announced that it will begin accepting paper and electronic tax returns for the 2018 tax year on January 28, but much remains to be seen about how the ongoing shutdown of the federal government will affect this year’s filings. Although the Trump administration has stated that the IRS will pay refunds during the closure — a shift from IRS practice in previous government shutdowns — it’s not clear how quickly such refunds can be processed. Effects of… Read more ›
In February 2018, the IRS modified the federal income tax withholding tables as a result of the reduced 2018 Federal income tax rates incorporated by the 2017 Tax Cuts and Jobs Act (TCJA). This modification may produce one of the following for you: (1) you are under-withheld, which will result in unexpected tax liabilities upon the filing of your 2018 returns, and perhaps the imposition of penalties for under-withholding; OR (2) you may be over-withheld, which means you are paying… Read more ›
Planning on calling the IRS this year for answers to some of your tax questions? If so, be prepared to be patient. In 2013, the IRS was only able to answer 61% of the calls that came through; those callers who actually got through experienced lengthy wait times. Due to budget cuts every year since fiscal year 2010, the IRS has fewer resources and less money to spend on training.