A number of important tax changes go into effect in 2019. Some were ushered in by legislation such as the Tax Cuts and
\nJobs Act (TCJA; P.L. 115-97, the 2016 Consolidated Appropriations Act (2016 Appropriations Act, P.L. 114-113), and the
\nBipartisan Budget Act of 2018 (BBA; P.L. 115-123). Still other changes are the result of various administrative
\npronouncements by IRS. This article, covering changes for businesses and tax-exempt organizations (other than indexing
\nchanges).<\/p>\n
Health Insurance Provider Fee Suspended for 2019:<\/strong><\/span>\u00a0 Under the Affordable Care Act (ACA, or Obamacare), for calendar Accounting Method Changes Rules for the AFS Conformity Rule:<\/strong><\/span>\u00a0 Under the TCJA, generally for tax years beginning after Dec. Observation: The six-year period is an exception to the general rules that require Code Sec. 481(a) adjustments to<\/em> Many Tax-Exempt Organizations Freed from Donor Disclosure Requirement:<\/strong><\/span>\u00a0 Code Sec. 6033(a) requires certain tax-exempt Although the statute does not address contributor reporting by tax-exempt organizations other than those described in The names and addresses of contributors for all types of organizations were reported on Schedule B, “Schedule of Code Sec. 501(c)(7), Code Sec. 501(c)(8), or Code Sec. 501(c)(10) will no longer be required to provide on Forms 990 or The above changes don\u2019t affect: And, organizations relieved of the obligation to report contributors\u2019 names and addresses must continue to keep this -Courtesy of Thomson Reuters, January 4, 2019<\/em><\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" A number of important tax changes go into effect in 2019. Some were ushered in by legislation such as the Tax Cuts and Jobs Act (TCJA; P.L. 115-97, the 2016 Consolidated Appropriations Act (2016 Appropriations Act, P.L. 114-113), and the Bipartisan Budget Act of 2018 (BBA; P.L. 115-123). Still other changes are the result of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n
\nyears beginning after Dec. 31, 2013, covered entities engaged in the business of providing health insurance with respect
\nto U.S. health risks face an annual flat fee. The fee is a fixed amount allocated among all covered entities in proportion to
\ntheir relative market share as determined by each entity’s net premiums written for the data year, which is the year
\nimmediately preceding the year in which the fee is paid. (ACA Sec. 9010) The 2016 Appropriations Act revised the
\neffective date of the annual fee so that it applied to calendar years: (i) beginning after Dec. 31, 2013 and ending before
\nJan. 1, 2017; and (ii) beginning after Dec. 31, 2017. (ACA Sec. 9010 (j), as amended)<\/p>\n
\n31, 2017, a taxpayer must recognize income no later than the tax year in which such income is taken into account as
\nincome on an applicable financial statement (AFS) or another financial statement under rules specified by IRS (subject to
\nan exception for long-term contract income under Code Sec. 460 ). However, under a special effective date provision, the
\nAFS conformity rule applies for OID for tax years beginning after Dec. 31, 2018, and the adjustment period is six years.<\/p>\n
\nbe taken into account in the year of change if they reduce taxable income (\u201cnegative adjustments\u201d) and over a four year<\/em>
\nperiod beginning with the year of change if they decrease taxable income (\u201cpositive adjustments\u201d).<\/em><\/p>\n
\norganizations to file annual information returns that include information required by forms or regs. The annual information
\nreturns required under Code Sec. 6033 include Forms 990, “Return of Organization Exempt From Income Tax”; 990-EZ,
\n“Short Form Return of Organization Exempt From Income Tax”; 990-PF, “Return of Private Foundation”; and 990-BL,
\n“Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons.” Code Sec. 6033(b)
\nprovides that tax-exempt organizations described in Code Sec. 501(c)(3) that are subject to the requirements of Code Sec.
\n6033(a) must furnish information annually setting forth certain items including, “the total of the contributions and gifts
\nreceived by it during the year, and the names and addresses of all substantial contributors.”<\/p>\n
\nCode Sec. 501(c)(3), the implementing regs under Code Sec. 6033(a) generally require all types of tax-exempt
\norganizations to report the names and addresses of all persons who contribute $5,000 or more in a year. (Reg. \u00a7
\n1.6033-2(a)(2)(ii)(f)) Reg. \u00a7 1.6033-2(a)(2)(iii)(d) also requires organizations described in Code Sec. 501(c)(7) (generally,
\nsocial clubs), Code Sec. 501(c)(8) (generally, fraternal beneficiary societies), or Code Sec. 501(c)(10) (generally, domestic
\nfraternal societies) to report the name of each person who contributed more than $1,000 during the tax year to be used
\nexclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or
\nanimals.<\/p>\n
\nContributors,” filed with Forms 990, 990-EZ, and 990-PF, or, with respect to organizations described in Code Sec.
\n501(c)(21), in Part IV of Form 990-BL.
\nCode Sec. 6033(a)(3)(B) provides a discretionary exception from the annual filing requirement under which IRS may
\nrelieve any organization (other than a supporting organization described in Code Sec. 509(a)(3)) otherwise required to file
\nan information return from filing such a return if IRS determines that the filing is not necessary to the efficient
\nadministration of the internal revenue laws.
\nFor information returns for tax years ending on or after Dec. 31, 2018, tax-exempt organizations required to file Form 990
\nor Form 990-EZ, other than those described in Code Sec. 501(c)(3), will no longer be required to provide names and
\naddresses of contributors on their Forms 990 or Forms 990-EZ and thus will not be required to complete these portions of
\ntheir Schedules B (or complete the similar portions of Part IV of the Form 990-BL). Similarly, organizations described in<\/p>\n
\nForms 990-EZ the names and addresses of persons who contributed more than $1,000 during the tax year to be used for
\nexclusively charitable purposes. (Rev Proc 2018-38, 2018-31 IRB)<\/p>\n
\n. . . the information required to be reported on Forms 990, 990-EZ, or 990-PF by organizations described in Code Sec.<\/em>
\n501(c)(3) (which, for purposes of Code Sec. 6033, include nonexempt charitable trusts described in Code Sec.<\/em>
\n4947(a)(1) and nonexempt private foundations described in Code Sec. 6033(d)) or political organizations described in<\/em>
\nCode Sec. 527.<\/em>
\n. . . the reporting of contribution information, other than the names and addresses of contributors, required to be<\/em>
\nreported on Schedule B of Forms 990 and 990-EZ and Part IV of the Form 990-BL.<\/em>
\n. . . the disclosure requirements under Code Sec. 6104(b) or Code Sec. 6104(d) of any information reported on the<\/em>
\nSchedule B of Forms 990 and 990-EZ and Part IV of the Form 990-BL. As a result, the Revenue Procedure will have
\nno effect on the reporting of Schedule B information that is currently open to public inspection.<\/p>\n
\ninformation in their books and records in order to permit IRS to efficiently administer the internal revenue laws through
\nexaminations of specific taxpayers.<\/p>\n