Wednesday May 22 2019 | 4:30PM—6:30PM |
Scarab Club | 217 Farnsworth Street | Detroit, MI 48202
The Tax Cuts and Jobs Act (Tax Act) which was signed into law in late 2017 includes the controversial treatment of qualified transportation fringes (QTF). The Tax Act disallows the deduction of QTFs provided by taxpayers to their employees. The tax treatment of QTFs for nonprofit employers will mirror those of for profit employers as an effort to “level the playing field” between for profit and nonprofit organizations. What has been coined the “parking tax” has stirred up some confusion. To help clear up some of the confusion, let’s break it down.
The stakes are high for all exempt organizations to be transparent, accountable and leverage technology. Those entities that are proactive with their mission, their resources and their message will continue to thrive and be leaders in their fields. The research shows that nonprofit transparency matters. UHY looks forward to continuing our role of sharing knowledge with those involved in the tax exempt area.
The new lease accounting standard, ASU 2016-02 (Topic 842), is set to take effect for not-for-profit organizations that have issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market, with fiscal years beginning after Dec. 15, 2018 and for all other not-for-profits for fiscal years beginning after Dec. 15, 2019. Issued by the FASB in February 2016, the new standard significantly affects the way leases are recorded on the balance sheet. While there has been considerable emphasis placed on understanding what will change under this new standard, it is just as important to understand what will remain the same.
When it comes to maintaining a proper accounting environment and having effective internal controls, not-for-profits (NFP) have essentially the same requirement as commercial organizations do. Having both are critical to capturing accounting data to provide for proper financial reporting, decision making, third party requirements, etc. However, in the increasingly competitive landscape of charitable organizations, smaller NFPs face some unique constraints that can significantly impact the internal control environment.