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Stay on top of the many rules and policy developments affecting higher education tax administration and compliance, and follow NACUBO's advocacy efforts on tax matters. If you're not already a subscriber to NACUBO's taxlist, a discussion group of more than 550 campus tax professionals, send an e-mail to the list administrator to receive instructions on how to participate. (Only employees of higher education institutions may participate on the taxlist).
News
IRS Seeks Comments on Form 990 Instructions. The instructions for the redesigned Form 990 that institutions or their foundations will file for the 2008 tax year have been published for public comment. Comments must be submitted to IRS no later than June 1, 2008.
Webcast The New Form 990. The new Form 990 requires institutions to collect and report vast amounts of new information. Join colleague Barbara Morris, director of tax and payroll services at Johns Hopkins University, for a review of the 2008 Form 990 and a discussion of its many new features in this April 16 Webcast.
IRS Updates Publication 571. The IRS recently updated Publication 571, which focuses on 403(b) plans. Most notable is that beginning in 2008, distributions from tax-qualified retirement plans and tax-sheltered annuities can be converted by making a direct rollover into a Roth IRA, subject to the current restrictions on rollovers from traditional IRAs into Roth IRAs.
IRS Seeks Comments from Governmental Entities on New 3% Withholding Requirement. The IRS requests comments on the new requirement for all governmental entities, including public colleges and universities, to withhold 3% on payments for goods and services. While NACUBO will be submitting comments on Notice 2008-38, all public institutions are encouraged to so as well. Comments are due to IRS by April 28.
New IRS Guidance on Employment Taxes and Worker Classification. Fact Sheet 2007-27 is designed to help employers better understand their responsibilities regarding employment taxes and classifying workers as either employees or independent contractors.
New IRS Publication on Education Tax Benefits. The IRS has issued Publication 970,Tax Benefits for Education to assist taxpayers seeking to claim federal education tax benefits on their 2007 tax returns.
IRS Releases 2008 Form 990. On December 20, the Internal Revenue Service published the redesigned and expanded 2008 Form 990. The new format--a core form with potentially 15 accompanying schedules--will be in effect for the 2008 tax year (for forms filed in 2009). The Service's news release, background materials and the 2008 Form 990 are posted on the IRS web site.
Forty-Three Years in the Making - Final 403(b) Regulations Released. Learn more during a NACUBO Webcast - Exploring the Final 403(b) Regulations on December 5, 2007.
Visit our Federal Register page for new proposed regulations from the IRS. In addition, the IRS has also released a new and revised version of Publication 901 (U.S. Tax Treaties). This publication is available on our Nonresident Alien Tax Issues page.
IRS Cautions Exempt Organizations Against Political Activity. On November 19, the IRS issued IR 2007-190, reminding exempt organizations, including colleges and universities, that they are strictly prohibited from engaging in political campaign activities.
Tax Forum Spotlights 990 Revisions, Bond Developments. At the NACUBO Tax Forum in Chicago at the end of October. Lois Lerner, the director of the IRS’ Exempt Organizations unit, discussed the proposed changes to Form 990, and Cliff Gannett, the director of the IRS Tax-Exempt Bonds office, discussed recent developments and initiatives in the bond area. Also see:
Education Tax Bill Expected from Senate Finance Committee. Senate Finance Committee staff have been working on a higher education tax bill that, among other things, would consolidate the Lifetime Learning tax credit and the above-the-line tuition deduction into a single credit.
IRS Examining Compliance with Qualified 501(c)(3) Bond Rules. On September 4, 2007 the Tax Exempt Bonds division and the Exempt Organizations Compliance Area at IRS announced a joint effort to take a look at the policies and procedures used by exempt organizations to comply with bonds rules.
New Deferred Compensation Rules for Faculty To Take Effect Next Year. Schools, colleges, and other institutions that spread compensation over 12 months for teaching staff who work for a 9-month period will have additional time to comply with recent changes to Internal Revenue Service rules on deferred compensation.
Senate Finance Leaders Call for More Scrutiny of Colleges and Hospitals
Senate Tax Writers Considering Limits on Tuition Remission, UBIT on Hedge Fund Investments
Notice 2007-45 Explains New 990-T Disclosure Requirement
IRS Q & A Addresses Form 990 Changes
Senator Grassley Asks CBO for Studies of College Athletics and Tax-Exempt Financing
IRS Report Identifies Executive Compensation Issues
IRS Seeks Comments on Donor Advised Funds and Supporting Organizations
NACUBO Urges Clarification of Bonds Rules
Updated Information on Tax Breaks for Students and Families
Special IRS instructions for Taxypayers Claiming the Tuition Deduction
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NACUBO Contact: Mary M. Bachinger, Director, Tax Policy, 202.861.2581
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