Many people think that nonprofit organizations (NPOs) are immune to changes in regulations affecting income tax.
Most government and nonprofit finance officers, executives, and board members are very familiar with the annual accounting or audit services they receive from their CPA firm (practitioner).
The answer is…YES!
“I welcome change, as long as nothing is altered or different.”
Every weekend I count on throwing away, recycling, or donating at least 10 items in my house.
If you ask management and board members of nonprofit organizations to identify the issues keeping them up at night, an IRS audit/examination probably isn’t on their top ten list.
In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, Interest: Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs as part of their initiative to reduce complexity in the accounting standards.
The 21st Century Cures Act, signed into law on December 13, 2016, allows qualifying small employers, including qualifying nonprofit employers, to maintain health reimbursement arrangements (HRAs) for the purpose of reimbursing employees the cost of insurance premiums purchased on their own.
Compliance by operating within an organization’s exempt purpose is paramount to managing, governing, and servicing nonprofit organizations.
In June 2014 I wrote a blog entitled Applying for Tax Exemption Just Got “EZ”er which described the IRS’s implementation of Form 1023-EZ.