|Full time Accounting Educator:||-97.00|
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
Eve Borenstein, JD Minneapolis, Minnesota
Eve has practiced law since 1985, operating for 15 years the Tax Exempt Law Office of Eve Rose Borenstein, LLC until that firm merged in 2004 into Borenstein & McVeigh Law (renamed BAM Law Office, LLC in 2017) www.BAMlawoffice.com. In both firms, Eve has been exclusively engaged with the unique tax and regulatory rules applied by the IRS and federal and state agencies to “tax-exempt” organizations. From her home-base, Eve consults with both CPAs and non-profit organizations nation-wide, representing through 2016 more than 1000 tax-exempt organizations before the IRS on everything from field examinations and private letter ruling requests to exemption applications and status updates. While a substantial portion of her clientele are organizations with gross revenues of less than $1m per year, Eve represents many medium ($2-10m) and large organizations ($10m+), typically on tax planning needs or in representation before the IRS on examinations or classification issues.
For more than two decades, Eve has been actively engaged in the American Bar Association’s Tax Section Committee on Exempt Organizations, working from that platform, as well as with various other professional groups and committees (including those of the AICPA), to provide feedback to the IRS on exempt organization forms and procedures. Since 1990, she has authored and instructed four exempt organization CPE courses offered by State CPA societies (two on the Form 990 and two on EO tax mandates). She was the co-author of the AICPA’s “Comprehensive Form 990” course in 2013-2015, and is the co-author of AICPA’s two 8 cpe Form 990 courses available in the 2016-2018.
Informed by her representation of entities overall, and by her work with the CPA community on the Form 990’s preparation, she is widely recognized as the authoritative instructor on that Form. In addition to teaching to the professional community serving non-profits, she participates in many training programs that serve non-profits directly. Her speaking and teaching have always comprised a significant portion of her work, as she is committed to helping the sector “do it right the first time”.
Eve is a native of New Jersey and a University of Rhode Island graduate who loves her adopted home-state of Minnesota. She earned her law degree from the University of Minnesota in 1985, and then worked in the Tax Department of one of the original Big 8 accounting firms in Minneapolis before initiating her own firm in 1988. She is the proud parent of two young adults and resides in Minneapolis and Duluth with her legal spouse.Rev. 8/17