tax news and views health care edition find it fast€¦ · income, cadillac tax, medical device...
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Vol. 12 No. 66 February 2020
Tax News and Views Health Care EditionClaim of Refund or Credit for repeal of parking tax
The Internal Revenue Service released guidance on the filing of amended returns to claim refund or credits for unrelated business income tax that was previously paid from qualified transportation fringe benefits under IRC section 512(a)(7). The tax was repealed retroactively in the Taxpayer Certainty and Disaster Tax Relief Act of 2019 passed in December 2019. The timeframe to file amended returns for the repeal of the “parking tax” is governed by IRC section 6511. Typically, this date is the later of three years from the date the original return was filed or two years from the time the tax was paid. The IRS provided three different steps in order to claim a refund as detailed below.
Find it FastClaim of Refund or Credit for repeal of parking tax
IRS news release on e-filing of tax-exempt forms
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Tax News and Views Health Care Edition
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Annual Revenue ProceduresThe IRS released a series of updated revenue procedures (Rev. Proc.) affecting tax-exempt organizations. Rev. Proc. 2020-1 revises the procedures for letter rulings, determination letters and information letters on specific issues. Rev. Proc. 2020-2 provides when and how the IRS provides guidance in a technical advice memorandum (TAM). Rev. Proc. 2020-3 updates the list of areas under the Internal Revenue Code that the IRS will not issue rulings. Rev. Proc. 2020-4, contains updated procedures for delivering letter rulings, determination letters, and other advice under the Tax-Exempt and Government Entities Division, Employee Plans Rulings and Agreement Office. Rev. Proc. 2020-5 includes revised procedures for issuing determination letters for organizations not covered under Rev. Proc. 2020-4, private foundation status and other determinations. Rev. Proc. 2020-7 contains a listing of provisions of the Internal Revenue Code that the Associate Chief Counsel (International) will not issue letter rulings or determination letters.
Proposed Rule for Charitable Contributions related to state and local tax limitationsThe Internal Revenue Service released proposed regulations on charitable contributions that are made in exchange for a state or local tax credits. The proposed regulations are based on the previous issued guidance under Revenue Procedure 2019-12. The proposed regulations provide a safe harbor for individuals and business entities, as well as clarify the definition of quid pro quo.
Special Release on updates from appropriations billPlease reference the special edition of the Tax News and Views Health care edition for discussion on repeal of several tax laws (qualified transportation fringe benefits as unrelated business income, Cadillac tax, medical device tax and annual fee on health insurance providers) and updates to the private foundation net investment income tax rate.
1. Write “Amended Return” on top of the Form 990-T, or if amended only due to qualified transportation fringe benefits write “Amended Return – Section 512(a)(7) Repeal”.
2. Complete the 990-T as originally filed, however:
a. 2017 Form 990-T:
i. Reduce amount on the line that was used to originally report qualified transportation fringe benefit (i.e. Line 12 – Other Income)
ii. Complete the remaining Form 990-T based on the revised numbers
iii. Include on “Other” line 45g (Other credits and payments) the amount of tax from line 48 (Tax Due) of the original return (if any)
iv. If the changes on the return result in an overpayment, the amount of overpayment is listed on line 49 (Overpayment) and the overpayment can either be refunded or credited on line 50
b. 2018 Form 990-T
i. Enter zero “0” on line 34 (Amounts paid for disallowed fringes)
ii. Complete the remaining Form 990-T based on the revised numbers
iii. Include on “Other” line 50g (Other credits, adjustments and payments) the amount from line 53 (Tax Due) of the original return (if any)
iv. If the changes on the return result in an overpayment, the amount of the overpayment is listed on line 54 (Overpayment) and the overpayment can either be refunded or credited on line 50
3. Attach a statement to the return that indicates the line numbers of the original return that were changed and the reason for the change (i.e. repeal of section 512(a)(7).
IRS news release on e-filing of tax-exempt forms
The Taxpayer First Act, enacted on July 1, 2019, requires tax-exempt organizations to electronically file certain tax returns beginning for tax years after July 1, 2019. The law affects the filing of the Forms 990, 990-PF, 990-EZ, 990-T, 8872 and 4720. The IRS new release dated December 13, 2019 contains the following updates for electronic filing:
Form 990 and 990-PF
Organizations with tax year ending July 31, 2020 or later are required to file the Form 990 or 990-PF electronically. For short period or certain other circumstances described in the instructions, the IRS will continue to accept paper filings as the IRS system does not allow for electronic filing.
Form 990-EZ
Small exempt organizations that are required to file a Form 990-EZ may either paper file or electronically file if the organization’s tax period ends before July 31, 2021. For tax years ending after July 31, 2021, the Form 990-EZ must me electronically filed.
Form 990-T and 4720
During the calendar year 2020, the IRS will accept paper forms of the Form 990-T and Form 4720. These forms are pending conversion to acceptance via electronic format. The IRS currently plans to have the forms ready for e-filing in 2021 for the 2020 tax year.
Form 8872
The Form 8872 filed by IRC section 527 organizations are required to be electronically filed for periods starting on or after January 2020. Organizations must electronically after signing up with a username and password at IRS.gov/polorgs.
Tax News and Views Health Care Edition
Deloitte Dbriefs
Deloitte Dbriefs are live webcasts that give you valuable insights on important developments affecting your business. Register for the following webcasts or view archived recordings by clicking on the respective hyperlinked button below.
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Mobility and data: Driving insights through analytics
Feb 5 | 2 p.m. ET | 18:00 GMT
Mobility ecosystems grow more complex every day for many organizations, and they generate growing volumes of data. How can organizations use that data to better support their globally mobile workforces? Participants will discover how leading organizations are leveraging their global data to maintain a competitive edge, attract and retain top talent, and make forward-thinking decisions about deploying global talent.
C-suite perspectives on digital transformation and the future of health
Feb 11 | 1 p.m. ET | 17:00 GMT
Life sciences and health care C-suite executives are navigating a new normal focused on better outcomes and more value. Are organizations prepared to embrace enterprisewide digital strategies, and, looking toward 2040, are leadership teams prepared for what is on the horizon? Participants will assess different ways for life sciences and health care leaders to think about investments and strategies today to prepare for the future of health.
Global tax management: Insights for delivering more value
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Tax leaders within global organizations face constantly shifting challenges and priorities. With pressure coming from many directions, how are tax functions pursuing progress and managing pitfalls? Participants will learn about market trends via Deloitte Touche Tohmatsu Limited’s latest survey on tax management, gain insights on how tax leaders are managing their tax departments, and discover ways to deliver value aligned with CFOs’ expectations, now and in the future.
Tax department tune-up: Building the business case
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Tax Controversy
IRS update: Recent developments and emerging issues
Feb 18 | 1 p.m. ET | 17:00 GMT
In recent years, the IRS has seen changes in leadership and strategy and has embarked on many new initiatives. What is the current state of the IRS, including changes resulting from the Taxpayer First Act of 2019, and how could these developments affect taxpayers and their representatives? Participants will evaluate these and other recent IRS trends and developments and assess possible implications for their organizations.
Tax News and Views Health Care Edition
The information contained in Tax News & Views: Health Care Edition is for general purposes only and Deloitte is not, by means of this newsletter, rendering accounting, business, financial investment, legal, tax, or other professional advice or services. This material is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this newsletter. If you have questions about the content of Tax News & Views: Health Care Edition, contact Mary Rauschenberg at +1 312 486 9544 or at [email protected].
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