Publications: Non-Profit Organizations


  • Change in Sales and Use Tax Affects Contractors, Municipalities and Nonprofits

    February 4, 2016

    Certain local Wisconsin governmental entities and nonprofit organizations have historically been exempt from payment of sales and use tax. Under a change in Wisconsin law which took effect on January 1, 2016, contractors may purchase construction materials on behalf of certain tax-exempt entities and organizations without paying Wisconsin sales or use tax. In essence, as long as the construction materials are incorporated into a construction project for those tax-exempt entities, the contractor will get the benefit of its client’s tax exemption. Before the change in the law, the contractor would be required to pay sales or use tax on the...



  • Increase in Safe Harbor Expense Threshold Creates Opportunity for Small and Medium-Sized Businesses

    December 3, 2015

    With the release of Notice 2015-82, the IRS has provided a valuable end of year tax-planning tool to businesses looking to expense tangible property purchases. The tangible property regulations have been in effect since January 1, 2014. The regulations included a safe harbor under which businesses may expense, rather than capitalize, certain tangible property. One such example would be the cost associated with computers and other technological hardware, but would not include any software or other intangible expenses. The safe harbor is intended to both ease taxpayer compliance and reduce a business’s administrative burden. Notice 2015-82 raises the safe harbor from $500...



  • Attention Employers: The IRS May Be Googling Your Employee Benefits Communications

    June 10, 2015

    Public sector and tax-exempt employers in Wisconsin should be aware that the IRS appears to be targeting section 403(b) plans for examination. Prior to and during recent IRS examinations of 403(b) plans in the state, we have learned that the audit trigger more than once was the IRS’s review of the employers’ websites for 403(b)-related communications. Unfortunately, the information revealed that the employers’ respective 403(b) plans were not being operated in compliance with IRS requirements. The posted documents ultimately led to the IRS selecting the employers’ plan for examination. As the IRS has emphasized in two recent newsletters targeted to federal,...



  • Is Your Estate Plan Jeopardizing your S-Corporation?

    June 1, 2015

    Many of us are familiar with the basic S-corporation mantra – avoid the so-called double taxation of regular C-corporations, all while maintaining the limited liability and practical advantages of a corporation. While many business owners engage in detailed planning to ensure compliance with Subchapter S of the Internal Revenue Code in order to maximize the tax benefits of being an S-corporation, the same level of diligence is often ignored when it comes to that business owner’s personal estate plan, and ultimately, their business succession plan. For a corporation to maintain its S-corporation eligibility, it must have fewer than 100 total shareholders,...



  • Spouses of H-1B Holders Now Eligible to Work in the U.S.

    April 8, 2015

    Starting May 26, 2015, the spouses of many H1-B visa holders will be eligible for employment authorization documents (EADs). Currently, the dependents of non-immigrant workers under the H1-B program are welcome to live in the United States and are granted a special dependent visa, known as an H4 visa. However, an H4 visa holder cannot engage in any work for compensation while they reside in the United States. This restriction puts a lot of H1-B workers and their employers in a tough spot. It forces many to put careers on hold while they live in the United States, it can...



  • Work Opportunity Tax Credit Extended; IRS Issues Guidance on Certification for 2014 Tax Year.

    March 10, 2015

    Private sector employers are now further incentivized for their efforts in hiring otherwise disadvantaged workers. The IRS recently issued guidance extending the time employers may claim a Work Opportunity Tax Credit (“WOTC”) of $2,400 or more for each qualified employee hired in 2014. Because the Tax Increase Prevention Act of 2014 (see D&K’s Client Alert, President Signs Tax Increase Prevention Act of 2014: Incentives for Employers and Individuals) extended the WOTC retroactively for the 2014 tax year, employers need additional time to comply with the certification requirements of WOTC. Notice 2015-13, summarized below, provides employers guidance on compliance aspects of...



  • President Signs Tax Increase Prevention Act of 2014: Incentives for Employers and Individuals

    January 8, 2015

    On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014 (HR 5771). Otherwise known as the “Tax Extenders” Act, this law retroactively extended through the end of 2014, over 50 tax breaks that expired on December 31, 2013. While there were discussions of making permanent a number of these extenders, particularly the Bonus Depreciation and Section 179 deductions, Congress ultimately passed on making any of these provisions permanent and punted the fate of the extenders to 2015 and the incoming 114th Congress. So, yes, that means that these very same provisions expired as of...



  • IRS Form 1023-EZ: Nonprofits Rejoice – but is the Potential for Fraud Real?

    December 14, 2014

    On July 1, 2014, the Internal Revenue Service (IRS) released Form 1023-EZ, a streamlined alternative to the venerable IRS standard-bearer in the world of nonprofits – Form 1023 Application for Recognition of Exemption Under Section 501(c)(3). The original Form 1023, weighing in at a robust 26 pages (including 7 schedules), can be burdensome, especially for small, volunteer based charities. For such nonprofits, the potential benefits were, quite simply, trumped by the significant commitment of time, money and organizational resources necessary to file the original Form 1023. Yet, due to the administrative oversight needed to process the lengthy Form 1023 applications, the...



  • Year-End Strategies Pave the Way for Minimizing Your Tax Burden in 2015

    November 24, 2014

    The final months of 2014 are a great time to finalize your tax planning opportunities and set the stage for minimizing your tax outlay in 2015. As a business owner, please be aware that in the wake of the election, sources indicate tax extenders are likely to pass, with some differences between the two houses in Congress being characterized as “easily resolvable” — one house leaning toward passing tax extenders as one bill, the other addressing tax extenders as six separate bills. Broad tax reform, even if put on a fast track would not likely take effect until late 2015...



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