News

NACUBO, joined by 10 other higher education associations, submitted recommendations to the IRS on proposed regulations for calculating unrelated business taxable income. The comments focused chiefly on the reporting of investments, asking the Service to adopt a greater than 50 percent ownership threshold for the control test and that a tax-exempt organization be allowed to look through any directly or indirectly held partnership interest.

Recently proposed regulations from the IRS aim to provide comprehensive guidance implementing the excise tax on executive compensation enacted by the Tax Cuts and Jobs Act.

The IRS has issued additional filing relief related to certain employment taxes, employee benefits, and exempt organizations affected by the pandemic. The deadline for most actions specified in the notice is July 15, 2020.

Recently enacted modifications to the Paycheck Protection Program give small businesses and nonprofits including some private colleges and universities more flexibility and time to use the loan proceeds while preserving loan forgiveness.

Following advocacy from NACUBO, the IRS has issued guidance that emergency grants provided to students under the CARES Act are not taxable. Meanwhile, the Department of Education is requiring institutions to post emergency grant disclosures to their websites no later than 30 days after receiving the funds.

The proposed rules implementing a 2017 tax-law change to how higher education institutions and other exempt organizations calculate unrelated business taxable income – the so-called basketing rules – ease some but not all of the administrative headaches for colleges and universities. Comments are due by June 23.

Following advocacy efforts by NACUBO, the Department of the Treasury and the IRS released guidance on tax relief for visiting students and scholars who currently are unable to travel home. The IRS also issued guidance on other filing and payment extensions.

Following requests from NACUBO and others, the IRS announced a July 15 tax filing and payment deadline for all taxpayers, including colleges and universities. The IRS also published penalty relief related to net operating losses, postponement of FICA and other employment taxes, and provided guidance on deferring those taxes.

Eligible employers, including some private colleges and universities, may access payroll tax credits and loan programs to offset employer costs during the COVID-19 pandemic.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes several tax measures aimed at providing relief to employers and their workers.