Keeping Up With the Speed of Change: Non-Profit Taxation

     At times, it seems that the only constant in life is change. This can be magnified if we hold onto wrong ideas, or do not recognize the shift to what the future will hold. When the Tax Cuts and Jobs Act was passed, it was a major event in the world of taxation. Now we all need to take time to understand how it will change things.
     Along with the 21% corporate tax, the TCJA will now apply the same tax on nonprofits when it comes to employee benefits. Having a nonprofit pay taxes is nothing new. However, this provision looks to affect churches as well, which would be unprecedented. The tax is really directed at benefits the employees receive. What benefits are subject to taxation and who will pay?
     That is unclear because the IRS has not yet given any direction on this subject. This could mean that certain groups will have to file tax forms for the first time. The move forward must be tempered with some patience, as the IRS will have the final say as to how these laws will be applied. Clarity will come in time. One thing is for sure, the road ahead is going to be very different than what we have seen before.

Comments

Popular posts from this blog

What is Fair in the Tax System?

What is the Educator Expense Deduction for 2023?

Internal Revenue Service to End Surprise In-Person Visits