Temporary Deferral of Employee Social Security Tax Withholding: Is It Really Worth It?

Written by Jeffrey Davine The Executive Order. On August 8, 2020, in response to the negative effects of the COVID-19 pandemic on America’s economy, President Trump issued an executive order permitting employers to defer the withholding and remittance of the employee’s share of the 6.2% Social Security (FICA) tax that is required when wages or salary are paid during the period September 1, 2020 through … Continue reading Temporary Deferral of Employee Social Security Tax Withholding: Is It Really Worth It?

COVID-19 Tax Relief

Written by Jeffrey Davine

COVID-19 Related Legislation

As has been widely publicized, the federal government has enacted legislation that is  designed to provide tax and other relief to employers as a result of the COVID-19 crisis.  The tax relief is principally in the form of tax credits for payroll taxes that an employer is required to remit to the IRS when paying wages to its employees.

One of the laws enacted is the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act).  The CARES Act was signed into law on March 27th.  It provides for a refundable payroll tax credit for employers whose businesses have been adversely affected by the Coronavirus.

Another statute enacted is the Families First Coronavirus Response Act (the “FFCRA”).  It was signed into law on March 18th.  The FFCRA provides small and midsize employers with refundable payroll tax credits to reimburse them for the cost of providing paid sick and family leave wages/salary to employees for an absence that is related to COVID-19.

The relief that is provided by both of these laws applies to both for-profit and nonprofit entities. Continue reading “COVID-19 Tax Relief”

Charitable Contributions Show You CARE

CARES Act Tax Benefits for Charitable Contributions

Written by David Wheeler Newman

The CAREs Act – the recently enacted gigantic economic stimulus bill – contains two provisions designed to boost charitable giving with enhanced tax benefits.  One provision will provide tax savings to donors making more modest gifts, while the other will benefit donors writing big checks. Continue reading “Charitable Contributions Show You CARE”

Paycheck Protection for Non-Profits

Charitable Organizations May Apply for Forgivable Loans Under the CARES Act

Written by David Wheeler Newman and Jean Nogues

As part of the unprecedented $2 Trillion stimulus package (the CARES Act), charitable organizations exempt under Internal Revenue Code section 501(c)(3) with 500 or fewer employees may apply for loans under the Paycheck Protection Program (PPP) provision of the Act.

All loans to qualifying charities will have the same terms: Continue reading “Paycheck Protection for Non-Profits”

America CARES

Tax and Employee Benefits Provisions of the CARES Act Written by David Wheeler Newman The Coronavirus Aid, Relief, and Economic Security Act (the “Act”) contains numerous provisions, intended to stimulate the economy, which will impact tax liability and compliance for individuals and businesses. Some of the important provisions are highlighted below. There are many additional provisions in this legislation impacting taxpayers and the below summary … Continue reading America CARES

Tax Filing Reprieve

Tax Return Filing and Payment Extensions

Written by Jeffrey Davine

As a result of the Coronavirus crisis, Treasury Secretary Steven Mnuchin recently extended the deadline for payment of 2019 federal income taxes from April 15th to July 15th.  This extension, however, did not apply to the filing of 2019 tax returns.

Today, the Treasury Secretary announced that the filing deadline for 2019 tax returns would be extended to match the new payment deadline. Continue reading “Tax Filing Reprieve”

Federal Tax Payments May Be Delayed 90 Days

Written by David Wheeler Newman Treasury Secretary Steven Mnuchin announced that individual taxpayers may defer payment of tax bills up to $1 million for ninety days, interest and penalty free, as part of a coronavirus stimulus bill announced by the administration on March 17. According to the Secretary, the $1 million limit is intended to provide relief to small businesses and pass-through entities like partnerships … Continue reading Federal Tax Payments May Be Delayed 90 Days

IRS Penalties Assessed Against Your Client May Not Be Valid

Auditor Examining Documents With Magnifying Glass At Table
Photo Credit: istock.com/AndreyPopov

Written by Robin C. Gilden 

Internal Revenue Code section 6751(b) provides that no penalty shall be assessed under the Code unless the initial determination of such assessment is personally approved (in writing) by the immediate supervisor of the individual making such determination, or such higher level official as the Secretary of the Treasury may designate.  This section defines penalty as any addition to tax or any additional amount.  The requirement for prior written approval does not apply to penalties for failure to file a return or pay tax, or to penalties that are automatically calculated through electronic means, but does apply to negligence and substantial understatement penalties, as well as the “responsible party” penalty for failure to withhold or remit payroll taxes.

Continue reading “IRS Penalties Assessed Against Your Client May Not Be Valid”

Tax Act Simplifies the Private Foundation Excise Tax on Investment Income

Taxpayer's desk and excise documents to import and export industrial goods for the purpose of maximizing profits for large business organizations.
Photo Credit: istock.com/kanizphoto

Written by David Wheeler Newman

Tax legislation that was included in the massive spending bill signed by the President included provisions affecting the charitable sector.  We previously reported on one provision involving the reviled nonprofit parking tax and on another provision granting temporary tax benefits for donations targeting disaster relief.  Another provision will be good news for private foundations and their advisors.

Continue reading “Tax Act Simplifies the Private Foundation Excise Tax on Investment Income”

Tax Act Enhances Deductibility of Disaster Relief Donations for a Limited Time Only

Auction concept - judges gavel against us dollar background.
Photo Credit: istock.com/alfexe

Written by David Wheeler Newman

Tax legislation that was included in the massive spending bill signed by the President included provisions affecting the charitable sector.  We previously reported on one provision that will be welcomed across the sector.  Another provision will be good news for donors making charitable contributions for disaster relief.

The Taxpayer Certainty and Disaster Relief Tax Act signed into law on December 20 includes various tax provisions intended to mitigate a portion of the enormous financial cost of recent hurricanes, tornadoes, forest fires, earthquakes and other natural disasters.  Included was an enhanced tax benefit for donors making charitable contributions to organizations providing disaster relief.

Continue reading “Tax Act Enhances Deductibility of Disaster Relief Donations for a Limited Time Only”