On June 5, the Center met with staff for Senator Richard Burr (R-NC) and several other members of Congress from North Carolina and then submitted suggestions for four ways that Congress can provide tax assistance to help tax-exempt nonprofits more efficiently and effectively provide relief and recovery services after natural disasters.
This fall, North Carolina voters will have the opportunity to decide whether six amendments will be made to the North Carolina Constitution. Voters will be asked to decide on constitutional amendments that would:
- Reduce the maximum state income tax rate from 10% to 7%;
The Center recently visited Washington, DC to advocate with our members of Congress on nonprofit issues. These include:
1. Protecting nonprofit nonpartisanship.
3. Universal charitable deduction.
4. 2020 U.S.Census
5. Public Service Loan Forgiveness Program
The Center has submitted comments requesting that the U.S. Department of Treasury and the Internal Revenue Service delay implementation of the changes to unrelated business income tax from the Tax Cuts and Jobs Act.
New Tax on Transportation and Parking Benefits is Problematic for Nonprofits
An under-the-radar provision in the Tax Cuts and Jobs Act that was passed and signed into law in December 2017 imposes a new tax on nonprofits that provide transportation and parking benefits to their employees. Nonprofits that provide these benefits to their employees are now required to pay unrelated business income tax (UBIT) on these expenses and must file Form 990-T with the IRS.
Now that the U.S. Senate has passed tax reform plan (see details below), House and Senate leaders are negotiating a final version of the bill that they hope to send to the President for his signature as soon as this Friday. While both the House and Senate plans include a variety of tax changes that are problematic for nonprofits (plus a few small changes that might benefit nonprofits), there is a big difference between the two plans.
This fall, Congress is in the process of rewriting the Internal Revenue Code with the dual goals of lowering individual and corporate income tax rates and simplifying our nation's tax laws. This tax overhaul has major implications for all 501(c)(3) nonprofits. Among other things, the tax reform proposals could reduce charitable giving, politicize 501(c)(3) nonprofits, eliminate financing options for nonprofits, and create new taxes on certain nonprofit activities.