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Preparers of four 990-series forms – the Forms 990 and 990-EZ (Return of Organization Exempt from Income Tax), Form 990-PF (Return of Private Foundation), and Form 990-T (Unrelated Business Income Tax Return) – are pressured by 2017 and 2018 changes to both IRS’ procedures and through Congress’ enactment in December 2017 of the Tax Cuts and Job Acts (TCJA). These changes affect the IRS’ handling of late or incomplete filings as well as penalty abatement requests. They also leave preparers and the non-profit sector overall dealing with uncertain UBIT calculations mandated by new Code sections 512(a)(6) and 512(a)(7). And last but not least, the majority of 990-T filers face an effective tax rate increase as of tax years begun in 2018, along with increased Form 990-T preparation costs. Come prepared to get your questions answered!
Take this unique opportunity to spend time with exempt organizations tax advisor Eve Borenstein as she details the uncertainties and realities here, in practical terms. Through her work with the IRS on exempt organization issues representing both the ABA and the AICPA, and as a frequent moderator of IRS speakers through the TE/GE Council, Eve has a wealth of information on the IRS’ reorganization of the TE/GE Operating Division, changes to procedures applied by the IRS’ Exempt Organization Division, and the Treasury Department’s priorities in light of TCJA.
Participants will learn:
- What TCJA’s UBIT “silo-ing” and loss of NOLs means for 2018 and 2019 tax year planning, including potential impact on some taxpayer’s public support testing
- Changes affecting penalty abatement requests in light of IRS’ changed position on when “reliance on tax preparer” constitutes reasonable cause
- IRS’ new policies regarding rejection of incomplete returns
- Impact of Chief Counsel’s District Office having responsibilities in IRS audit examinations and appeals closing
- About the IRS’ increased commitment to publication not only of all taxpayer’s 990-series filings but also exemption applications
- How specific arenas of TCJA adversely affect exempt organizations:
- most exempt organizations who had pre-TCJA UBIT now face a 40% tax rate increase
- taxation of executive compensation (reaching a new pool of “highly compensated” managers)
- the new investment tax for certain colleges
- filers providing employees at any time in 2018 with any Code section 132 nontaxable transportation benefits need review the possibility of Form 990-T filing obligations for fiscal years begun in 2017 as well as all years begun in 2018
This event has already passed. If you have any questions, please contact us at 503-641-7200 or email firstname.lastname@example.org.