The Tax Cuts and Jobs Act made sweeping changes to the Internal Revenue Code including some that apply to tax-exempt organizations. Exempt organizations should become familiar with the new tax law and make plans to comply with it. Continue reading “Tax Cuts and Jobs Act: Changes That Affect Tax-Exempt Organizations”
South Dakota v. Wayfair Inc. Challenges Quill Corp. v. North Dakota Decision
A very important case will be heard by the U.S. Supreme Court that could dramatically change the sales tax landscape. This spring the Court will hear South Dakota v. Wayfair, Inc., which challenges a prior Supreme Court decision in Quill Corp. v. North Dakota. Continue reading “Supreme Court to Hear Case That Could Change Multi-State Sales Tax Law”
Do you have customers in Europe? Are you a charity that receives donations from EU citizens? Do you send your newsletter to people in Europe? If any of these apply to you, you should be aware of changes to European privacy laws that will come into effect on May 18, 2018. That is the effective date of the new European Union General Data Protection Regulation (GDPR), which significantly broadens the geographic scope of European privacy laws to include individuals and businesses outside of the EU. Continue reading “EU Data Protection Law to Impact Charitable Donations”
“Mark of the Beast”: Fourth Circuit Upholds Judgment That Employer Failed to Accommodate Employee’s Religious Beliefs
A recent Fourth Circuit Court of Appeals ruling highlights an employer’s mistakes when refusing an employee’s request for a religious accommodation. The case, EEOC v. Consol Energy, Inc., upheld the lower court’s judgment against Consol that it failed to accommodate an employee’s religious objection to participate in the employer’s mandated biometric hand scanner system. The Fourth Circuit also upheld the district court’s damages award to the employee of almost $600,000.
On June 7, 2017, the U.S. Department of Labor (DOL) announced that it was withdrawing the Obama-era DOL 2015 and 2016 informal guidance memorandums on independent contractors and joint employment also referred to as joint employer. These memorandums were “Administrator’s Interpretations” meant to provide guidance as to how the law and related regulations with respect to independent contractors and joint employment should be interpreted and applied to employers.
Continue reading “Update: U.S. Department of Labor Withdraws Guidance on Independent Contractors and Joint Employment”
If you have spent time in a hospital you may have seen pets walking through the hallways en route to patient visitations. Pet visitation programs are often organized and coordinated by charities established solely for the purpose of providing pet visitation. The charities work with hospitals and other healthcare providers to offer pet visitation services to patients. Some hospitals organize their own pet visitation programs. A recent IRS ruling (PLR 201719018, May 12, 2017) concluded that a pet visitation program organized by a medical research and educational institution qualified as a charitable purpose of the institution.
Continue reading “IRS Deems Pet Visitation is for the Public Good”
Students who have recently graduated from college deep in debt may think of themselves as charity cases, but that is not how the IRS sees them. An organization formed to assist individuals in paying off their student loans was denied 501(c)(3) tax-exempt status by the IRS (PLR 201718036, May 5, 2017).
Nonprofit organizations are often surprised that their executive compensation practices can be subjected to Internal Revenue Service (IRS) scrutiny. Executive compensation is more than an executive’s salary, compensation includes an executive’s retirement plan, any deferred compensation, and other fringe benefits. Over the past several years, the IRS has increasingly investigated the executive compensation practices of nonprofit organizations. In addition, nonprofit executive compensation is a common risk-area flagged for audit by the IRS. IRS scrutiny of excessive executive compensation is not just a concern of large nonprofits with substantial resources but for small nonprofits as well. Continue reading “Nonprofits and Executive Compensation”
You may be familiar with open source software. If you are, you know it is software people can modify and share because its design is publicly accessible. Would efforts to develop open source software qualify as an exempt purpose under tax law? It’s not commercial and it benefits the public, right?
Not according to the IRS. Continue reading “Developing Open Source Software Not an Exempt Purpose”
It’s common this time of year to see amateur baseball teams facing each other in a game full of rivalry and friendly competition. Amateur sports teams are often organized as nonprofits and may qualify for tax exemption. In a recent case the IRS revoked the 501(c)(3) tax exempt status of an organization that operated an amateur baseball league for adults (“League”) (PLR 201717044, April 28, 2017). The IRS concluded that the League was not organized or operated for exempt purposes.To qualify for exemption under Section 501(c)(3) an organization must be organized and operated for exempt purposes. Exempt purposes include educational and charitable activities. Continue reading “Amateur Sports League’s Tax Exemption Revoked”