Tax

In early May of this year, the Biden Administration officially made the decision to revoke the previously adjusted Trump era ruling on independent contractor classification.    Earlier this year, in January 2021, the Trump administration took advantage of the opportunity to implement final changes to the Department of Labor (DOL) before leaving office. The “final rule” that they implemented stood largely unchanged from the original ruling which established a tiered test to determine employee versus contractor status as part of the Fair Labor and Standards Act (FLSA).    The updated proposal established a two-part analysis to determine whether a worker’s…
Despite better ideas on how to truly help low-income parents of infants, California lawmakers took a route this July that spends a lot of money but doesn’t sufficiently help the group in need of assistance. Why does this happen? There is plenty of data and a 2019 report from the Legislative Analysts Office pointing out that their law change won’t provide as much help as it could have if better designed. I’m talking about what started out in 2019 (SB 92, Chapter 34 (6/27/19)) as a two-year exemption (2020 and 2021) from sales tax for infant diapers and…
Certified Pubic Accounting Firm Clark Nuber will be hosting a webinar on 2021 Private Foundation Basics on Tuesday, July 27, from 9 a.m. to 1 p.m. PDT. You can register on Eventbrite (cost: $100; CPE: 4 technical credits). This seminar is a great opportunity to learn about the fundamentals of private foundations, answer the common questions, and understand what makes them different from other types of charitable entities. The course is designed to provide you with planning opportunities to ensure your private foundation successfully operates within the regulatory boundaries. The webinar is divided into 4 section: Primer: Historical background, legal…
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 director of the Centers for Disease Control and Prevention struck a new tone of urgency on Thursday about the coronavirus pandemic, warning that the United States is “not out of the woods yet” and is once again at “another pivotal point in this pandemic” as the highly infectious Delta variant rips through communities with low rates of vaccination.” NY Times “New federal data draws one of the starkest illustrations to date of how…
Whether it be preserving the breathtaking paintings and sculptures in the famous Louvre of Paris, feeding malnourished children in Somalia, or combatting extreme gender inequality in Saudi Arabia, there is no shortage of international causes that might compel U.S. citizens and organizations to want to donate abroad. While a donor can directly donate to a foreign charity, the donor will not be able to take a tax deduction on such donation as only domestic 501(c)(3) organizations are eligible to receive deductible charitable contributions.  Thus, if there is wide support for a foreign cause, setting up a “Friends Of” organization in…
On July 16, 2021, the IRS released its updated Employee Plans Compliance Resolution System (EPCRS) by issuing Rev. Proc. 2021-30 setting forth the parameters of the program and replacing the former governing revenue procedure, Rev. Proc.  2019-19.  EPCRS is a comprehensive system under which employers can save the favorable tax treatment of retirement plans intended to be qualified retirement plans under Internal Revenue Code (Code) section 401(a), 403(b) plans, or SEP and SIMPLE IRAs when they have failed to meet the requirements of the Code either in operation or in their plan document.  Changes to EPCRS include: expansion of the…
  Over the past year businesses flocked to the Small Business Administration (SBA) to submit applications to receive their share of the federally allocated Paycheck Protection Program funding.    PPP loans were distributed to businesses struck hard by the ongoing coronavirus pandemic. Their intended use was to help keep workers employed by providing funding to support their ongoing paychecks following mass layoffs at the forefront of the pandemic.    Since their initial rollout, it has been discovered that many businesses wrongly claimed PPP loans, resulting in millions of dollars of fraudulent claims.    As of May 31, SBA…
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: “Senate Majority Leader Charles E. Schumer (D-N.Y.) on Thursday sought to move lawmakers one step closer to debating and potentially passing roughly $4 trillion in new federal spending, announcing his plans to hold a key chamber vote on a still-forming infrastructure deal next week. … A key component financing their tentative legislation — increased federal efforts to collect unpaid taxes — seemed in political peril Thursday amid sustained GOP opposition to the idea.” Washington
The tax provisions included in President Biden’s Build Back Better plan are mostly similar to what he campaigned on, such as repealing tax preferences for fossil fuels and providing tax breaks for most families.  I have posted a table listing the tax provisions in the Administration’s FY2022 Greenbook. There is a lot there relevant to all individuals, wealthy people with lots of appreciated assets, alternative energy companies, oil companies,and more. I think it is also interesting what is not there such as: Limiting the QBI Section 199A deduction for individuals with income above $400,000.  I guess this is because 199A…
“It’s us, your new museum.” In the midst of the pandemic, the 100-year-old San Diego Museum of Man – nestled among a dozen or so major cultural institutions in beautiful Balboa Park – formally announced not just a change of name but also the “promise of a new way of thinking about museums.”  And, according to BoardSource’s CEO, Anne Wallestad, “The Museum of Us in San Diego is a prime “example of purpose-driven board leadership in action.” It’s the sole organization she chose to illustrate this groundbreaking call for entirely new thinking and action by nonprofit boards. See The Four