Not For Profit/Exempt Organizations Blog

Monthly Archives: June 2010

Some Pension Plans Must File FBARs by June 30, 2010

The deadline for filing the Report of Foreign Bank and Financial Accounts (FBAR) by U.S. persons that held a financial interest in a foreign financial account for calendar year 2009 if the aggregate value of all the U.S. person's foreign financial accounts exceeded $10,000 at any time during the year is almost here -- all FBAR filings must be received by the U.S. Department of Treasury on June 30, 2010 (not just postmarked by such date). There are no extensions and the failure to file an FBAR can result in significant penalties. … Continue Reading

Could a New Quasi-Charitable For-Profit Be Emerging in the Tax Code?

A majority staff director for the Senate Finance Committee said that perhaps it might be time to consider the tax liability for an entity that is neither wholly charitable nor wholly for-profit. In fact, the director said that the Senate Finance Committee wrestled with the problem of a quasi-charitable entity in enacting the health care legislation, and said that the tax treatment of not-for-profit organizations might be revisited further in the tax reform context. … Continue Reading

United States Supreme Court will Hear Medical Resident FICA Case

Many health care and medical education institutions have claims pending with the IRS for refunds of the FICA (Social Security and Medicare) tax paid on wages for employed medical residents. The issue for these claims is whether the residents are "students," and their wages accordingly exempt from FICA tax, for purposes of the student FICA exception in the Internal Revenue Code. Last summer, the Eighth Circuit Court of Appeals held that this regulation was valid in the Mayo Foundation for Medical Research and Education and the University of Minnesota cases. These institutions petitioned the Supreme Court for certiorari. Yesterday, the United States Supreme Court granted the certiorari petition and will hear the appeal. … Continue Reading

Out-of-State Exempt Organizations May be Affected by New Massachusetts Data Security Regulations

Massachusetts's new data security regulations, effective March 1, 2010, currently set forth the country's most stringent requirements for protecting data. Extending beyond what is required by other states, Massachusetts specifies that, for example, covered entities, including exempt organizations, must implement a written information security program and must encrypt personal information that will be transmitted over the Internet, or that is kept on laptops and other portable devices. Out-of-state exempt organizations working with Massachusetts residents should determine whether they have to comply with these new regulations. … Continue Reading