Presentation at September 11, 2015 AENC Membership & Finance Conference

1. Tax Compliance & Reporting Update
September 11, 2015

2. Today’s Topics
 New Tax Deadlines
 Alternative Investments
 Common Form 990 Errors

3. New Tax Deadlines
 Highway Trust Fund Extension
• Effective for tax years beginning after 12/31/2015
 Revised Extension Periods
• Employee Benefit Plans – Automatic 3 ½ month extension
• Exempt Organizations – Automatic 6-month extension
• FinCEN 114 – New 6 month extension
 Also includes changes relevant to for-profit subsidiaries

4. Alternative Investments
 Investments that are not stocks, bonds, or cash
• Reported on Form 990, Part X, Line 12
 Why do we care?
•Unrelated business income
•Character of income passes through to NFP
•May require 990-T and state income tax filings
•S Corp income is “per se” UBI (IRC Sec. 512(e))

5. Alternative Investments

6. Alternative Investments
 Reporting is keyed off
of Schedule F, Part IV
•Secondary effect of
alternative investments
•Ownership in a foreign
• Corp
• Trust
• Partnership
• Passive Foreign Investment
Company
•Penalties for failure to
disclose are severe

7. Common Tax Filing Issues
 Accurate reporting of Form 990
• Take time to understand and evaluate:
•Gross receipts
•Compensation
•Highest compensated independent contractors
•Grants and other assistance
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8. Common Tax Filing Issues – Gross Receipts
 Gross Receipts
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9. Common Tax Filing Issues - Compensation
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10. Common Tax Filing Issues – Highest
Compensated Contractors
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11. Common Tax Filing Issues – Grants and Other
Assistance
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12. Questions?
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13. Thank you for your participation!
John Huskins, CPA
Tax Senior Manager
Johnson Lambert LLP
jhuskins@johnsonlambert.com
919-719-6431
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