IRS Issues Interim Guidance on Nonprofit Excise Tax

Despite the partial government shutdown, the IRS on Dec. 31 issued interim guidance on the 21 percent excise tax on tax-exempt executive compensation exceeding $1 million in any taxable year, enacted as part of the 2017 tax law. ASAE has flagged the tax as concerning to the tax-exempt community, particularly because compensation subject to the… Read more »

UBIT Coalition Continues Work

While the shutdown has paused action in Washington, the UBIT Coalition will continue to bring together associations and nonprofits to urge Congress to delay or repeal the 21 percent tax on parking and transportation benefits provided by nonprofit organizations. “While the interim guidance released by the Treasury Department last month provides associations some guidance in… Read more »

Changes to DC Tax Exemption Regulations

Beginning on January 1, 2019, the District of Columbia Office of Tax and Revenue will require that nonprofit organizations re-apply for tax-exempt status every five years. Many associations have already received notices from the District as to this change. Eric Owens, Tax Senior at Tate & Tryon, advises tax-exempt organizations that if their Federal determination… Read more »

House Sets Up Vote on Year-End Tax Bill

The House was scheduled to vote today on a year-end tax bill offered by Ways and Means Committee Chairman Kevin Brady (R-TX), although the looming partial government shutdown is taking up all the oxygen on Capitol Hill now. Brady’s tax package, which includes repeal of a 21 percent tax on parking and transportation benefits provided… Read more »

Treasury Issues Guidance on Fringe Benefits Tax

While congressional leaders worked this week to repeal the fringe benefits tax on nonprofits, the Treasury Department issued interim guidance on Dec. 10 to help soften the tax blow on the sector. Last year’s tax law sets a 21 percent tax on so-called fringe benefits – such as free parking or mass transit assistance –… Read more »