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NONPROFIT INDUSTRY NEWS
December 2020
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COVID-19 relief Act extends and improves many credits and incentives
On Sunday, December 27, President Trump signed the Consolidated Appropriations Act, 2021 (CAA, 2021). The act contains numerous individual, business, payroll, disaster, and energy-related tax provisions, as well as tax extenders. Many of the provisions, including $600 stimulus payments, and an extension of payroll credits, relate to the COVID-19 pandemic.
Click here to find a summary of the bill's provisions.
If you have questions or would like to speak with a member of our HSC COVID-19 Fast Response team, please contact your HSC team member or Lacy Bender, CPA, MBA at
lbender@hsccpa.com or Michele Graham, CPA, MST at
mgraham@hsccpa.com.
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Top 5 missteps to endowment management under UPMIFA
The Uniform Prudent Management of Institutional Funds Act (UPMIFA) was enacted by 49 states and the District of Columbia about a decade ago (Pennsylvania is the lone holdout, but has its own law in this area). UPMIFA completely overhauled the rules for managing donor-restricted endowments and the accounting standards were also updated in response. However, many organizations have still not realized that the rules have changed; they have continued to follow the principles of the old rules and may not even realize that they are out of compliance.
To view the full article,
click here.
For more information, or for any questions, please contact Shannon Brewer, CPA at
sbrewer@hsccpa.com.
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Final regs. address payments to charities in return for SALT credits
The 2017 tax law (P.L. 115-97) added section 164(b)(6), which limits the individual income tax deduction for state and local taxes to $10,000 ($5,000 married filing separately). In response to these limitations, certain states and localities instituted tax credit programs under which taxpayers may receive credits against their state or local tax obligations in exchange for contributions to entities described in section 170(c).
On June 13, 2019, Treasury and the IRS published final regulations (
T.D. 9864) providing that the receipt or expectation of a state or local tax credit in exchange for a charitable contribution constitutes a quid pro quo, which reduces the taxpayer’s charitable contribution deduction. In
Rev. Proc. 2019-12, the IRS provided a safe harbor under section 162 for payments or transfers for business purposes made to organizations described in section 170(c). In
Notice 2019-12, the IRS provided a safe harbor under section 164 for certain individuals that made payments to organizations described in section 170(c) in return for state or local tax credits.
To read the full article,
click here
.
For more information, or for any questions, please contact Lacy Bender, CPA, MBA, at
lbender@hsccpa.com or Michele Graham, CPA, MST, at
mgraham@hsccpa.com.
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Harding, Shymanski & Company, P.S.C. is a public accounting firm with offices in Evansville, Indiana, and Louisville, Kentucky. We are one of the largest accounting firms in Southern Indiana and Kentucky, providing experienced professionals who look beyond the numbers to the heart of complex issues. Our clients range in size from small proprietorships to billion-dollar corporations, from closely-held and family-owned businesses to publicly traded firms, and span nearly every industry. They all have one thing in common: they count on our expertise to capitalize on their opportunities and make the best of their challenges.
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Evansville Office
21 SE Third Street
Suite 500
Evansville, IN 47708
(812) 464-9161
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Louisville Office
545 S Third Street
Suite 102
Louisville, KY 40202
(502) 584-4142
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Harding, Shymanski & Company, P.S.C
Office locations
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