When we recently spoke at CalCPA’s nonprofit committee meeting, we mentioned a big issue plaguing nonprofits – failure to pay payroll taxes. For cash flow or other reasons, nonprofits often fail to make these payments to the IRS and the EDD. These agencies have taken notice and are going after nonprofits that fail to make …
Posts Categorized: Taxes
The Devil is in the Details
How carefully do you follow IRS rules when making a charitable donation? We’ve posted before about the importance of charities providing adequate acknowledgments to donors, but the duty isn’t just one-sided. If you are making a charitable donation, it is just as important for you to follow the rules. Wondering how bad it could be …
Will Pease Disturb the Peace?
Nonprofit leaders throughout the country are holding their collective breath waiting for the answer. A few months ago, we told you about the charitable deduction limitation scare caused by Obama’s budget plan. The panic resided when Obama clarified that the charitable deduction was not being targeted for reduction. But the so-called “Pease” limitation is now …
IRS Releases New Info for Clergy Members and Religious Workers
Are you a clergy member or a religious worker? Or are you helping a clergy member or a religious worker file his or her 2011 tax returns? Or maybe you just love new IRS publications? If you answered yes to any of these questions you should know that the IRS released a new version of …
IRS Targets Nonprofits with Unrelated Business Income
Nonprofits need to be aware that the IRS is targeting organizations with unrelated business income. Concerned about unrelated business activity, the IRS will be watching closely for organizations that report unrelated business income on the Form 990 but then do not file a Form 990-T. Form 990-T is the tax return required from exempt organizations …
FAQ’s for Vow to Hire Heroes Act
As we first discussed here, the VOW to Hire Heroes Act expanded the Work Opportunity Tax Credit to tax-exempt employers. The IRS has now released frequently asked questions and answers regarding the Act. The FAQ’s cover everything from the definition of a “qualified veteran” to how to claim the credit. The IRS also provides examples …