We think we can all agree 2020 was a year unlike any other. The coronavirus pandemic wreaked havoc on our economy, our national politics and for most, our personal lives. Many individuals across the country have turned to nonprofit organizations for aid and assistance in a year when nonprofit organizations themselves have struggled.
Due to the pandemic, some nonprofit organizations have faced mandatory shutdowns, restricted operations and declines in charitable giving, or a combination of all three. For others, the pandemic has created needs amongst their clients far greater than normal. Regardless of the impact, nonprofits have needed to be quick and nimble to react – continuing to provide their services through alternate means or in a different capacity while staying true to their underlying mission and the individuals they serve. Many nonprofits weathered 2020 through loyal donors and taking advantage of economic relief provided by various relief bills, including the Paycheck Protection Program loans, federal, state and HHS funding, and various payroll tax credits in an attempt to revive and continue operations. As 2021 looms ahead and the pandemic continues to impact America, the sector needs to take advantage of new relief that is avaible to continue the critical work they do.
While funding and operating issues should be top of mind for nonprofit leaders, it is also important they don’t ignore other regulatory changes that could impact their organizations. The IRS and Treasury were busy in 2020, finalizing guidance around key nonprofit tax provisions and creating new tax reporting requirements for nonprofit organizations. Failure to be aware of and follow these rules could result in penalties for the organization.
We can help nonprofit organizations understand the various legislative and regulatory reporting requirements so they can enter 2021 with a better understanding of the current tax landscape. Join us on January 20, 2021 for our Nonprofit Tax & Industry Update where we will address the newly enacted COVID legislation, final regulations related to provisions in the Tax Cuts and Jobs Act and other IRS and Treasury issues that will impact nonprofit organizations in the coming year.
Nonprofit Tax & Industry Update
Kim Hunwardsen is Partner-in-Charge of Tax-Exempt Services in Eide Bailly’s National Tax Office.
Christine Perez is a Manager in Eide Bailly’s National Tax Office, specializing in Exempt Organizations.
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