Tax

Under the federal health coverage continuation law, known as COBRA, a private employer with 20 or more employees that sponsors a group health plan must let individuals elect to continue their health coverage when it would otherwise end for certain reasons (such as job loss, divorce or the employee’s death). Qualified beneficiaries with COBRA continuation rights include employees, spouses and dependents who would lose coverage because of the event. Employers can charge individuals electing COBRA the full cost of coverage, plus an additional 2% to cover administrative costs. Individuals who lose employer coverage because of job loss (voluntary or involuntary)…
This is our second post on Georgetown Law’s annual nonprofit governance conference held virtually last week – 2021 Nonprofit Board Governance: Identifying Issues, Assessing Effectiveness, Managing for Organizational Success. Here are more highlights from Day One: The Board’s Role Anne Wallestad, CEO of BoardSource, discussed the role of the board of directors of a nonprofit and the ingredients and practices around board oversight: There are three essential components to the board’s role: Setting direction and strategy Ensuring resources Providing oversight Oversight ingredients: Board composition focused on independence and all of the board’s functions Appropriate board size High standards for director…
Tax season brings on additional stress for many. First, the hurry to get your information prepared and submitted for review by IRS. Then follows the thoughts of whether or not your information was submitted correctly or whether you’ll be faced with an audit.  Ideally, your taxes will be submitted correctly the first time. That being said, if you recognize an error in your return, you should attempt to submit an amended return as soon as possible. While it’s best to fix any mistakes yourself before IRS discovers them, you still may not be 100% safe from a potential audit.  While…
Stay informed of the week’s notable events (including the Skoll World Forum) and shared resources with this curated list of Nonprofit Tweets of the Week. Notable Events of the Week: “Police fatally shot a man after a traffic stop on Sunday in suburban Minneapolis, sparking clashes between hundreds of protesters and officers in an area where tensions are already high during the ongoing trial of former police officer Derek Chauvin. The victim’s family identified him as 20-year-old Daunte Wright.” Washington Post “After President Joe Biden declared Wednesday that the US must shift focus from a bloody and intractable war…
Georgetown Law’s annual nonprofit governance conference was held virtually earlier this week – 2021 Nonprofit Board Governance: Identifying Issues, Assessing Effectiveness, Managing for Organizational Success. The opening session was presented by James G. Sheehan, Chief of the New York Attorney General’s Charities Bureau, and Anne Wallestad, CEO of Board Source. This post will highlight part of Sheehan’s presentation on a regulator’s perspective. We’ll highlight learnings from Wallestad’s presentation on a future post. Sheehan cited Why Bad Things Happen to Good Organizations: The Link Between Governance and Asset Diversions in Public Charities by Erica Harris, Christine Petrovits & Michelle H.…
Need to review 1099 classification criteria? CLICK HERE: How do you minimize the risk of an EDD Audit? There is no way to eliminate the risk of a government agency audit, audits are performed on a number of criteria, from a site sweep in which contractors are randomly audited by EDD to an unemployment claim from a 1099 worker who unwittingly files on your company. In whatever scenario, it is best to have all your ducks in a row when EDD audits. One of the first areas of scrutiny will be the status of your workers. If your workers…
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.…
“Deaccessioning” – that is, selling off artwork for any purpose other than to acquire more artwork – is the “cardinal sin” of the museum world.  Before the pandemic, this was official policy of The Association of Art Museum Directors (AAMD), the professional group that “… serves as the industry’s referee and moral watchdog.”  For the last decade or so, the AAMD has enforced this proscription from time to time with a heavy hand. It slapped costly monetary sanctions on violators. Member institutions did their part as well; they “shunned” the renegades – for instance – by denying…