Tax

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Today (April 13, 2021) the Senate Finance Committee held a hearing on The 2021 Filing Season and 21st Century IRS.  The sole witness was IRS Commissioner Charles Rettig.  There are three takeaways I want to share: 1. The IRS is Overburdened! I encourage you to at least skim Commissioner Rettig’s written testimony. He lays out numerous challenges that that IRS has faced for years and even more due to COVID-19 tax law changes. Consider the three rounds of Economic Impact Payments they had to issue while sheltering in place (each round went to about 160 million individuals), new…
After companies including Uber, Lyft, DoorDash, and others spent nearly $200 million campaigning for the addition of a ballot measure exempting them from the previously passed California AB5 ruling. They won, and so began Proposition 22.  The passing of Proposition 22 protects drivers’ preferences to remain classified as independent contractors with the flexibility to work when, where, and how long they want. A notable aspect of the passing of Prop 22 is that future reform is limited by preempting local laws and requiring that any tweaks by the state legislature comport with its intent and pass with a seven-eighths supermajority. …
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “On Wednesday, the Treasury Department released the details of Mr. Biden’s tax plan, which aims to raise as much as $2.5 trillion over 15 years to help finance the infrastructure proposal. That includes bumping the corporate tax rate to 28 percent from 21 percent, imposing a strict new minimum tax on global profits and cracking down on companies that try to move profits offshore.” NY Times “Amid steady progress with coronavirus vaccinations, the U.S.…
California nonprofit corporations (and foreign nonprofit corporations operating in California) should be aware of several recent changes that impact filings with the California Secretary of State (SoS). SB 522 Filings with the SoS must include the entity name and number as they exist on the Secretary of State’s records. If filing a certified copy of a merger document from another state (e.g., California corporation merges into a foreign corporation and files the certified merger document with the SoS), an attachment with the California entity number must be included. “Any instrument submitted to the Secretary of State for filing pursuant to…
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Despite everyone’s awareness that tax day is rolling around each year, many companies still end up leaving their filings until the last minute. As a result, the last-minute filings can easily lead to accidental mistakes when filing.  Nobody wants to intentionally make mistakes, but especially when it deals with your taxes. Why? Because mistakes on your tax return are often a red flag for IRS to investigate further.  So how can you properly prepare to minimize your likelihood of an IRS audit? Well, the following tips are a good place to start.  1. Download the IRS calendar  There are often…
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “The infrastructure plan that President Biden described on Wednesday — $2 trillion in federal investment in poured concrete, electric car chargers, artificial intelligence and social engineering — is a bet that government can do colossal things that the private sector cannot. …It will take years to know whether Mr. Biden’s initiative will have the lasting power of the New Deal or the Great Society, or whether it can “change the paradigm,” as he argued…
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We are in tough times! The pandemic is in it’s second year and the March 13, 2020 disaster declaration is still in effect. The American Rescue Plan Act of 2021 signed into law on March 11, 2021 is the 5th major piece of COVID-19 relief enacted since mid-March 2020. The tax changes in these laws are numerous and complex in terms of new definitions, special rules, confusing interaction with other rules, and being effective before IRS can get adequate guidance released. The IRS could not even open the 2021 filing season until February 12 – later than usual. The IRS…
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Last month, the Stanford Social Innovation Review published a groundbreaking article on nonprofit governance authored by Anne Wallestad, CEO of BoardSource: The Four Principles of Purpose-Driven Board Leadership. The article focuses on the board’s obligation to prioritize decision-making and direction-setting on the organization’s charitable purpose, even ahead of the organization itself. Wallestad defines purpose as “a melding of the concepts of mission and vales in pursuit of vision.” For purposes of this post, we’ll follow this expanded definition. The prioritization of purpose over organization requires the board to shift its viewpoint from being organization-centric to ecosystem-centric. Traditionally, boards are…
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On January 7th, 2021, the US Department of Labor (DOL) announced the updated ruling to clarify its interpretation of independent contractor status as part of the Fair Labor Standards Act (FLSA).  Overall, the ruling stands largely unchanged from the original ruling which established a tiered test to determine employee versus contractor status as part of the FLSA. The updated proposal establishes a two-part analysis to determine whether a worker’s correct status is that of an independent contractor or employee. The “core factors” stated are as follows:  The nature and degree of control over the work. The worker’s opportunity for profit…
Stay informed of the week’s notable events and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “Investigators on Tuesday were trying to determine what motivated a 21-year-old man, charged in the shooting at a Boulder, Colo., grocery store, to take the lives of 10 people, in the second mass shooting in the United States in less than a week.” NY Times “President Biden on Thursday set a hierarchy for the country’s numerous crises, pledging to administer 200 million coronavirus vaccine shots by the end of April, repair the country’s infrastructure…