IRS Changes for Nonprofits and Employers
Since the Tax Cuts and Jobs Act (TCJA) in late 2017 and the Taxpayer First Act of July 2019, there are significant changes in tax regulations. The IRS issued and revised several regulations that affect nonprofits and religious organizations specifically. Here are a few you need to be aware of:
Tax-Exempt Organizations must file Form 990 electronically for tax years beginning after July 1, 2019.
Apply for Tax-Exempt Status Electronically with the Revised Form 1023.
The IRS found a significant reduction of errors in the submissions when they converted the Form 1023-EZ to electronic format back in 2014. Here is a link to the online application https://pay.gov/public/form/start/704509645.
The “Parking Lot Tax” for Exempt Employers has been Repealed.
The TCJA required a 21% tax on some employee benefits including parking. This caused many churches to pay an UBIT (unrelated business income tax) on the cost of parking provided to employees. This NO Longer applies, and organizations can claim a refund. Click here for details on how to claim the refund. https://www.irs.gov/forms-pubs/how-to-claim-a-refund-or-credit-of-unrelated-business-income-tax-ubit-or-adjust-form-990-t-for-qualified-transportation-fringe-amounts
Have Your Employees Fill Out a New Form W-4 Payroll Withholding.
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