Tuesday, September 7, 2010

Is a Form 990-T required for health care credit?

IRS announced that nonprofit organizations will be required to file Form 990-T to claim the refundable health care credit. Form 990-T will be required even if the organization does not have unrelated business income (the usual use of Form 990-T). Form 8941 will assist nonprofit organizations in calculating the credit.

Passed in March 2o10, the credit is designed to provide encourage smaller organizations to offer health insurance as a fringe benefit. The credit does not apply when an organization has 25 or more full time equivalent employees or if the average full time employee wage exceed $50,000.

More at http://www.irs.gov/newsroom/article/0,,id=227404,00.html

Wednesday, September 1, 2010

Scholarship Rules Trap Congressman

United States Representative Eddie Bernice Johnson has admitted that the Congressional Black Caucus Foundation awarded scholarships to at least 23 of her relatives at her direction. This should serve as a reminder that IRS rules require all scholarship decision makers be independent of all applicants and recipients. This standard applies to all Section 501(c)(3) organizations that award scholarships. If your organization awards scholarships, it is time to review all the requirements to assure compliance the federal tax laws governing the award of scholarships.