Three Top Tax Concerns Still Facing Charity Sector

    In this article, Robert Lee discusses the major tax concerns charities are facing. The first concern is unrelated business taxable income. Charities are concerned about how the IRS will implement new tax code section 512(a)(6), which requires charities to report taxable income that a charity regularly receives from businesses not substantially related to its charitable mission for each separate trade or business. On August 21, the IRS released some guidance on this issue, proposing that nonprofits use the North American Industry Classification System to help identify separate businesses for calculating their income. The second concern is fringe benefits. Section 512(a)(7) subjects certain transportation and parking fringe benefits to the unrelated business income tax rate at 21%. To learn more about the other major concerns facing nonprofits after the 2018 tax reform, click here: https://biglawbusiness.com/three-top-tax-concerns-still-facing-charity-sector/

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