Picture a 1,000-piece jigsaw puzzle of a frightening image with a single piece missing. No matter which piece is missing, the image is still frightening. Now picture the same jigsaw puzzle with 400 pieces missing. The image...more
The US Department of the Treasury has released long-expected proposed regulations regarding the section 4960 excise tax on certain remuneration or separation amounts paid to the five highest paid employees of a tax-exempt...more
Healthcare providers facing emergency requests from government agencies in response to the Coronavirus (COVID-19) crisis — including critical issues such as transfers of COVID-19 patients, opening closed facilities and...more
4/1/2020
/ Best Practices ,
Business Continuity Plans ,
Coronavirus/COVID-19 ,
Crisis Management ,
Emergency Management Plans ,
Health and Safety ,
Health Care Providers ,
Healthcare Facilities ,
Hospitals ,
Infectious Diseases ,
Policies and Procedures ,
Public Health ,
Reporting Requirements ,
Risk Management ,
Workplace Safety
On March 13, 2020, President Trump declared a national emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the “Declaration”) due to extraordinary circumstances resulting from Coronavirus....more
3/17/2020
/ Coronavirus/COVID-19 ,
Corporate Counsel ,
Emergency Response ,
Employer Responsibilities ,
Financial Assistance Policies ,
Funding ,
Grants ,
Internal Revenue Code (IRC) ,
Private Foundations ,
Public Charities ,
Quarantine ,
State of Emergency ,
Tax Relief
As an update on an important matter that we raised during McDermott’s May 8 Tax Symposium, it is critical to promptly assess whether to report any excise taxes imposed under Section 4960 as the deadline for filing Form 4720...more
5/14/2019
/ Charitable Organizations ,
Employee Definition ,
Excise Tax ,
Filing Deadlines ,
Good Faith ,
Highly Compensated Employees ,
Internal Revenue Code (IRC) ,
IRS ,
Private Foundations ,
Privately Held Corporations ,
Proposed Regulation ,
Tax Exempt Entities ,
Volunteers
One of the more controversial and complex provisions of the Tax Cuts and Jobs Act has been the 21 percent excise tax on certain nonprofit executive compensation. On December 31, 2018, the IRS issued interim guidance that...more
As part of its comprehensive 2017 tax reform bill, Congress repealed deductions for Qualified Transportation Fringes including for employer-provided parking, while also requiring that tax-exempt organizations increase their...more
Tax-exempt organizations—especially hospitals and health systems—face a new tax reality now that both houses of Congress have voted to pass the final tax reform bill....more
The Senate’s final tax reform bill contains several troubling provisions for tax-exempt organizations but represents an improvement over last month’s proposed legislation, which caused concern across the nonprofit sector. ...more
In what can only be described as a brutal attack on the nonprofit sector, the Senate has proposed sweeping changes that would have dramatic adverse effects on all tax-exempt organizations. Whereas the latest version of the...more
11/13/2017
/ Business Taxes ,
Charitable Donations ,
Colleges ,
Deferred Compensation ,
Excise Tax ,
Executive Compensation ,
Sanctions ,
Senate Finance Committee ,
Tax Exempt Entities ,
Tax Reform ,
Universities
After nearly two decades of restructuring service agreements to comply with Internal Revenue Service safe harbors, hospitals and other 501(c)(3) organizations are now subject to a new set of guidance and a single safe harbor...more
Section 139 of the Internal Revenue Code allows an employer to provide tax-free qualified disaster relief payments to Texas and Louisiana employees in designated areas affected by Hurricane Harvey....more
As you may recall, the Internal Revenue Service (IRS) issued final regulations regarding Section 501(c)(3) supporting organizations in December 2012. The imposition of an annual notice requirement for all “Type III Supporting...more
In This Issue:
- Community Health Needs Assessments (Code Section 501(r)(3))
- Financial Assistance Policies (Code Section 501(r)(4))
- Limitation on Charges (Code Section 501(r)(5))
- Billing and Collection...more