On the Radar: Three Tax Issues

By Donna Oser posted 16 days ago

  
Tax paperwork


It's all too easy to get caught up serving members and miss a financial update or guidance issued by the IRS. Here are three quick tax-related items that should be on your radar. 

Could Your Association Use $28,000 Per Employee in 2021?

The Employee Retention Tax Credit (ERTC) is a refundable payroll tax credit based on wages paid to employees at organizations that either (1) have been fully or partially shut down due to a government order OR (2) had gross receipts decline a certain percentage less than those in the same calendar quarter of 2019. The maximum credit for 2020 is up to $5,000 per employee, and for 2021 it is up to $7,000 per employee per calendar quarter. For associations still dealing from the pandemic, the ERTC is well worth the time spent on doing the calculations. CLICK HERE FOR MORE INFO ON THE ERTC

Less than 3 Months Left to Leverage Charitable Giving Incentives  

Congress enacted improvements to charitable giving rules during the pandemic; recent legislation extends some of these incentives through 2021. They include above-the-line deduction (universal or nonitemizer deduction), relaxed rules on cash donations, a hike to 100% in the amount itemizers can claim each year (up from 20% and 60% for businesses and individuals, respectively), an increase from 10% to 25% in the amount corporations can deduct, and increased limits on amounts deductible for donations of certain food inventories. These incentives could be a great way to boost your end-of-year donations! CLICK HERE FOR MORE INFO 

Frustrated by the Cost of Compliance? Input on Tax-Exempt Organization Forms due by 11.30.21

The Internal Revenue Service issued a notice and request for comments on tax-exempt organization forms, including Forms 990, 990-EZ, 990-N, and 990-PF, as well as regulations, notices, and Treasury Decisions affecting tax-exempt organizations. The IRS is seeking input on taxpayer compliance burdens that the Service defines as “the time and money taxpayers spend to comply with their tax-filing responsibilities.” These include “recordkeeping, tax planning, gathering tax materials, learning about the law and what you need to do, and completing and submitting the return,” plus out-of-pocket costs. CLICK HERE FOR MORE INFO


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#taxes
#finance
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