Nonprofit Tax
Nonprofit Challenges in Navigating Tax Issues
Nonprofit organizations are often thought to be tax exempt. But this is a misnomer, as there are many situations where a nonprofit may have to either pay or collect and remit tax. Private foundations, also under the umbrella of 501(c)(3) nonprofit organizations, are subject to a 1.39 percent net investment tax on their investment income […]
Nonprofits Can Transfer, Claim Direct Payments for Inflation Reduction Act Credits
The Inflation Reduction Act (the “Act”), originally signed into law on August 16, 2022, outlined a proposal that allowed certain non-taxable entities to receive specific credits under the Act as direct payments. On June 14, 2023, the IRS issued proposed regulations that outline how these non-taxable organizations can file and make an election to either […]
Employee Retention Credit: Amend the Proper Return
The Employee Retention Credit (ERC) is a refundable pandemic-related tax credit for eligible employers who were fully or partially suspended due to a governmental order or who had a qualifying decline in gross receipts between March 2020 and September 2021 for comparable quarters. The credit may be claimed by filing an amended 941 for the […]
Tax Takeaways for Tax-exempt Organizations
During AAFCPAs’ Nonprofit Seminar (April 2023), Joshua England, LLM, Esq. and Chris Consoletti, Esq. updated more than 400 attendees on the latest tax issues, laws, and procedures affecting tax-exempt organizations. In their presentation, they offered an overview of accomplishments made by the IRS last year and its objectives this year. They also discussed the Employee […]
Mass AG Amends Form PC Filing Requirements
On May 31, 2023, Massachusetts Attorney General Andrea Joy Campbell enacted several important changes to the state charity filing, the Form PC. AAFCPAs has highlighted the changes below and how they will affect Massachusetts nonprofit organizations. Mandatory Filing of Form PCs through Online Charity Portal Effective September 1, 2023, all Form PC filings which are […]
Nonprofits May Now File Public Disclosure Documents Online in MA, NY
AAFCPAs would like to make clients aware that new online portals in the states of Massachusetts and New York are available for charities to prepare and submit their statutorily required filings. These online portals allow charities and nonprofit organizations to streamline annual disclosures. AG Healey Launches First-Ever Online Portal for Charities Filings in Massachusetts Massachusetts […]
May 16 is filing deadline for many tax-exempt organizations
AAFCPAs would like to remind nonprofit clients of an upcoming filing deadline of May 16, 2022. Those that operate on a calendar-year (CY) basis have certain annual information and tax returns they file with the IRS. These returns are: Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF) Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt […]
Should Your Nonprofit Accept Cryptocurrency Donations?
With a current total market cap of all cryptocurrencies now exceeding $2 trillion dollars, nonprofits who refuse to accept, or do not have adequate policies in place for accepting crypto donations may be missing out on a large and growing funding stream. While accepting crypto donations may seem like an unwanted headache for nonprofit organizations, […]
Guidance on New Lease Accounting Standard
In 2016, FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) to increase transparency and comparability of lease transactions. AAFCPAs has summarized some of the most significant changes resulting from the new ASU for your convenience: AAFCPAs has provided a detailed Whitepaper providing guidance on the FASB’s new Lease standard so clients may proactively […]