Is your nonprofit incorrectly classifying employees as independent contractors? This has been an area of hot attention by the IRS and Employment Development Department in the last few years and it’s about to get even worse. California employers who willfully misclassify employees are fined between $5,000-$15,000 per incident, in addition to any other penalties or …
Posts Categorized: News
UPDATE: New Misleading Mailers
Did your nonprofit heed our warning about misleading mailers? Hopefully it didn’t fall prey to the most recent misleading mailers we’ve seen. The first is titled “Statement of Information Officers List” and warns that failure to file a Statement of Information may cause an entity to become suspended. While the warning may be true, it …
Misleading Mailers Revisited
Around this time last year, we warned you about misleading mailers notifying you that your organization’s annual minutes are due. Well it’s that time of year again! Make sure to read our blog and check with a trusted advisor before providing payment. Also check the Secretary of State’s Website, which regularly posts warnings about these …
To Pay or Not to Pay
Does your nonprofit pay unemployment insurance (UI) taxes? Well it should. Although nonprofits are not required to pay state or federal UI taxes, if a nonprofit that hasn’t paid its UI taxes has an unemployment claim, it is obligated to reimburse the government in full for the former employee’s claim. So while saving on these …
Republicans Seek to Protect the Charitable Deduction
Yesterday we told you about Democratic Senators’ proposals to cut charitable deductions. Now Republican Rep. David Reichert is spreading the word that Republicans don’t agree. In an interview with The Chronicle of Philanthropy, Reichert affirms that he has never supported a cap on the charitable deduction and neither have any of his Republican colleagues. He …
IRS Seeks Information from Self-Declarers
Do you know that nonprofits other than 501(c)(3)s (except 501(c)(9), 501(c)(17), and 501(c)(20) orgs) can self-declare their tax exempt status when they file their first Form 990? If you think this can lead to abuse, the IRS agrees. That’s why the IRS has commenced a study of self-declarers. As part of its study, the IRS …