Blog
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Tips to help prevent accounting and tax errors
Christina Parker Christina Parker

Tips to help prevent accounting and tax errors

Although failing to file a Form 990 with the IRS when required to do so is probably a more serious mistake, filing it with data errors isn’t recommended. Similarly, your not-for-profit should strive to be as accurate as possible when preparing accounting and other tax documents. Carelessness can cost you support from donors and grant makers and, in extreme cases, threaten your exempt status. Here’ s how to avoid financial errors.

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How to ease staffer anxiety about your nonprofit’s future
Christina Parker Christina Parker

How to ease staffer anxiety about your nonprofit’s future

Like every other organization, your not-for-profit is probably working hard to negotiate the challenges of high inflation and other economic threats. So you’d be forgiven for concentrating more on stretching every dollar than on your staffers’ financial anxieties. But as some high-profile employers start laying off workers, your employees may worry about the security of their own jobs. To keep your operations running smoothly, it’s important to clearly and honestly communicate information about your nonprofit’s financial situation.

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2023 limits for businesses that have HSAs — or want to establish them
Christina Parker Christina Parker

2023 limits for businesses that have HSAs — or want to establish them

No one needs to remind business owners that the cost of employee health care benefits keeps going up. One way to provide some of these benefits is through an employer-sponsored Health Savings Account (HSA). For eligible individuals, an HSA offers a tax-advantaged way to set aside funds (or have their employers do so) to meet future medical needs.

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Why your nonprofit might want to compensate board members
Christina Parker Christina Parker

Why your nonprofit might want to compensate board members

Because most not-for-profit board members serve voluntarily, you may not have known compensating them was an option. But depending on the type of organization, the expertise and experience expected of board members, and the required time commitment, it may make sense to compensate these hardworking individuals.

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Worried about an IRS audit? Prepare in advance
Christina Parker Christina Parker

Worried about an IRS audit? Prepare in advance

RS audit rates are historically low, according to a recent Government Accountability Office (GAO) report , but that’s little consolation if your return is among those selected to be examined. Plus, the IRS recently received additional funding in the Inflation Reduction Act to improve customer service, upgrade technology and increase audits of high-income taxpayers. But with proper preparation and planning, you should fare well.

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Keep your religious congregation on the financial straight and narrow
Christina Parker Christina Parker

Keep your religious congregation on the financial straight and narrow

Religious congregations usually enjoy greater protection from federal government oversight than other not-for-profit organizations. For example, the IRS can’t conduct a “church tax inquiry” unless a high-level Treasury Department official has written evidence that a religious organization has violated tax-exempt rules. However, you’d do your faith group a great disservice it you failed to observe IRS rules and financial best practices. Even if your congregation escapes government scrutiny, it could fall victim to fraud — or general mismanagement — that harms your members and reputation.

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Work Opportunity Tax Credit provides help to employers
Christina Parker Christina Parker

Work Opportunity Tax Credit provides help to employers

In today’s tough job market and economy, the Work Opportunity Tax Credit (WOTC) may help employers. Many business owners are hiring and should be aware that the WOTC is available to employers that hire workers from targeted groups who face significant barriers to employment. The credit is worth as much as $2,400 for each eligible employee ($4,800, $5,600 and $9,600 for certain veterans and $9,000 for “long-term family assistance recipients”). It’s generally limited to eligible employees who begin work for the employer before January 1, 2026. The IRS recently issued some updated information on the pre-screening and certification processes.

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The FLSA asks your nonprofit to accurately classify staffers
Christina Parker Christina Parker

The FLSA asks your nonprofit to accurately classify staffers

Are your not-for-profit’s staffers employees or independent contractors? It’s an important question because under the Fair Labor Standards Act (FLSA), misclassifying workers can lead to penalties and other costs. If you haven’t reviewed your staffers’ status since the start of the pandemic, now may be a good time — particularly if you’ve recently experienced staff turnover and have started relying more on temporary workers.

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2022 Q4 tax calendar: Key deadlines for businesses and other employers
Christina Parker Christina Parker

2022 Q4 tax calendar: Key deadlines for businesses and other employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

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What makes charitable donors give?
Christina Parker Christina Parker

What makes charitable donors give?

People give to charity for many reasons — to “make a difference” or “give back,” to reduce their tax burden and even to impress their peers. These many motivations can be frustrating for not-for-profits looking for a magic formula. In the absence of one, you need to keep your eyes and ears open and be prepared to act on information as it becomes available.

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Businesses may receive notices about information returns that don’t match IRS records
Christina Parker Christina Parker

Businesses may receive notices about information returns that don’t match IRS records

The IRS has begun mailing notices to businesses, financial institutions and other payers that filed certain returns with information that doesn’t match the agency’s records. These CP2100 and CP2100A notices are sent by the IRS twice a year to payers who filed information returns that are missing a Taxpayer Identification Number (TIN), have an incorrect name or have a combination of both. Each notice has a list of persons who received payments from the business with identified TIN issues. If you receive one of these notices, you need to compare the accounts listed on the notice with your records and correct or update your records, if necessary. This can also include correcting backup withholding on payments made to payees.

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Don’t let disaster fraud victimize your nonprofit
Christina Parker Christina Parker

Don’t let disaster fraud victimize your nonprofit

It’s been a busy year for natural disasters, with Hurricane Ian only the latest calamity to befall the United States and its territories. If your not-for-profit operates in or serves clients in a disaster zone, you know how difficult the recovery process can be. Unfortunately, fraud perpetrators attempting to profit off the misery of others can make rebuilding difficult — even for charities.

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If you’re hiring, take a look at veterans
Christina Parker Christina Parker

If you’re hiring, take a look at veterans

Despite widespread fears of recession in recent months, hiring remains strong in the United States. Employers added 528,000 jobs in July 2022 and many organizations seeking new workers are having trouble filling positions. If your not-for-profit has open slots, you might want to look to military veterans. This demographic can have a harder time finding civilian jobs, and tax breaks may be available for employers who hire them.

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How to treat business website costs for tax purposes
Christina Parker Christina Parker

How to treat business website costs for tax purposes

These days, most businesses have websites. But surprisingly, the IRS hasn’t issued formal guidance on when website costs can be deducted. Fortunately, established rules that generally apply to the deductibility of business costs provide business taxpayers launching a website with some guidance as to the proper treatment of the costs. Plus, businesses can turn to IRS guidance that applies to software costs.

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Promoting your nonprofit with your annual report
Christina Parker Christina Parker

Promoting your nonprofit with your annual report

Do you think about your not-for-profit’s annual report as a yearly obligation or even an unpleasant chore? If so, your annual report likely isn’t much fun to read — and you’re missing a chance to attract and engage critical audiences. Instead, embrace this opportunity to communicate the good your organization does and promote your mission and programs. Here’s how to write an annual report that will l keep readers’ attention.

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Three tax breaks for small businesses
Christina Parker Christina Parker

Three tax breaks for small businesses

Sometimes, bigger isn’t better: Your small- or medium-sized business may be eligible for some tax breaks that aren’t available to larger businesses. Here are some examples.

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What revenue numbers can reveal about your nonprofit’s financial health
Christina Parker Christina Parker

What revenue numbers can reveal about your nonprofit’s financial health

When professional auditors review a not-for-profit’s books, they usually spend significant time on revenue. Inadequate revenue — or revenue trending in the wrong direction — can provide an early warning of future trouble. But you don’t have to wait for your next audit to assess revenue. You can employ the same techniques an auditor uses to monitor your organization’s financial health.

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Important considerations when engaging in a like-kind exchange
Christina Parker Christina Parker

Important considerations when engaging in a like-kind exchange

A business or individual might be able to dispose of appreciated real property without being taxed on the gain by exchanging it rather than selling it. You can defer tax on your gain through a “like-kind” or Section 1031 exchange. A like-kind exchange is a swap of real property held for investment or for productive use in your trade or business for like-kind investment real property or business real property. For these purposes, “like-kind” is very broadly defined, and most real property is considered to be like-kind with other real property. However, neither the relinquished property nor the replacement property can be real property held primarily for sale. If you’re unsure whether the property involved in your exchange is eligible for a like-kind exchange, contact us to discuss the matter.

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Guidance on clean vehicle tax credit
Christina Parker Christina Parker

Guidance on clean vehicle tax credit

Treasury and the IRS released initial guidance on Tuesday regarding a new requirement to qualify for the Sec. 30D clean vehicle tax credit, which is that the car or truck must be assembled in North America.

The Inflation Reduction Act, H.R. 5376, made broad changes to the clean vehicle tax credit, including extending it through 2032 and creating a new credit for previously owned clean vehicles (Sec. 25E), but the only change that took effect immediately upon enactment of the legislation Tuesday was the North America final assembly requirement.

For new clean vehicles purchased after Aug. 16, 2022 (the date President Joe Biden signed the legislation), the tax credit is generally available only if the qualifying vehicle's final assembly occurred in North America (final assembly requirement).

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