Nov
30
2016

Private Foundations and Impact Investing

Bryan Cave recently organized a half-day symposium examining the opportunities and legal considerations related to responsible and impact investing strategies. The Responsible and Impact Investing Symposium, held on November 10, was co-presented by Fordham University’s Gabelli School of Business and featured leaders in this growing field who discussed opportunities and legal considerations for investors, private foundations, financial advisers and for-profit entities, from start-ups to established ventures. More than 135 guests attended the event.  With respect to private foundations, we focused our discussion on the use of program related investments and what we hope is a growing trend to use these tax-advantaged tools to make a difference in our communities.   Below are the foundation slides from the event.  Special thanks to my co-speakers, John Oddy from Foundation Source and Dana Bezerra from the Heron Foundation.

For a complete list of speakers and the program agenda, please click here

For additional information about this program, please click here

Program Related Investments and Private Foundations

Impact Investing and Private Foundations

Written by in: Events
Nov
22
2016

TE/GE Announces New Information Document Request Management Process

The Tax Exempt and Government Entities Division of the Internal Revenue Service has issued new internal guidance for its agents on issuing information document requests (IDRs). The IRS issues IDRs to gather information during an examination. The new process will go into effect on April 1, 2017. Prior to its implementation, TE/GE will provide training to its agents on the new process.

Under the new process:

  1. Taxpayers will be involved in the IDR process.
  2. Examiners will discuss the issue being examined and the information needed with the taxpayer prior to issuing an IDR.
  3. Examiners will ensure that the IDR clearly states the issue and the relevant information they are requesting.
  4. If the taxpayer does not timely provide the information requested in the IDR by the agreed upon date, including extensions, the examiner will issue a delinquency notice.
  5. If the taxpayer fails to respond to the delinquency notice or provides an incomplete response, the examiner will issue a pre-summons notice to advise the taxpayer that the IRS will issue a summons unless the missing items are fully provided.
  6. A summons will be issued if the taxpayer fails to provide a complete response to the pre-summons letter by its response due date.

The new process requires the examiners’ managers to be actively involved early in the process and ensures that IRS Counsel is prepared to enforce IDRs through the issuance of a summons when necessary. Throughout this process, the IRS will respect taxpayer rights‎ and the changes will reflect the agency’s commitment to the Taxpayer Bill of Rights.

The updated process will:

  • Provide for open and meaningful communication between the IRS and taxpayers.
  • Reduce taxpayer burden and provide consistent treatment of taxpayers.
  • Allow the IRS to secure more complete and timely responses to IDRs.
  • Provide consistent timelines for IRS agents to review IDR responses.
  • Promote timely issue resolution.
Written by in: Governance
Oct
31
2016

2017 Qualified Plan Limits Released

The IRS recently released updated limits for retirement plans.  Our summary of those limits (along with the limits from the last few years) is below.

Type of Limitation 2017 2016 2015 2014
Elective Deferrals (401(k), 403(b), 457(b)(2) and 457(c)(1)) $18,000 $18,000 $18,000 $17,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (457(b)(3) and 402(g) provide separate catch-up rules to be considered as appropriate) $6,000 $6,000 $6,000 $5,500
SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals $3,000 $3,000 $3,000 $2,500
415 limit for Defined Benefit Plans $215,000 $210,000 $210,000 $210,000
415 limit for Defined Contribution Plans $54,000 $53,000 $53,000 $52,000
Annual Compensation Limit $270,000 $265,000 $265,000 $260,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 $400,000 $395,000 $395,000 $385,000
Highly Compensated Employee 414(q)(1)(B) $120,000 $120,000 $120,000 $115,000
Key employee in top heavy plan (officer) $175,000 $170,000 $170,000 $170,000
SIMPLE Salary Deferral $12,500 $12,500 $12,500 $12,000
Tax Credit ESOP Maximum balance $1,080,000 $1,070,000 $1,070,000 $1,050,000
Amount for Lengthening of 5-Year ESOP Period $215,000 $210,000 $210,000 $210,000
Taxable Wage Base $127,200 $118,500 $118,500 $117,000
FICA Tax for employees and employers 7.65% 7.65% 7.65% 7.65%
Social Security Tax for employees 6.2% 6.2% 6.2% 6.2%
Social Security Tax for employers 6.2% 6.2% 6.2% 6.2%
Medicare Tax for employers and employees 1.45% 1.45% 1.45% 1.45%
Additional Medicare Tax* .9% of comp >$200,000 .9% of comp >$200,000 .9% of comp > $200,000 .9% of comp > $200,000

*For taxable years beginning after 12/31/12, an employer must withhold Additional Medicare Tax on wages or compensation paid to an employee in excess of $200,000 in a calendar year for single/head of household filing status ($250,000 for married filing jointly).

Oct
25
2016

Don’t forget to register for the free webcast about Clarifying the Universal Availability and Other 403(b) Retirement Plan Requirements

When: October 27, 2016; 2 p.m. (Eastern)

How: Register for this event. You will use the same link to attend the event.

Learn about:

  • Hours of service
  • Changes in employee status
  • Student participation
  • Other 403(b) rules

This hour long webcast will provide answers to many of the questions we received for the May 19, 2016, Understanding the Universal Availability Rules in a 403(b) Retirement Plan webcast. We encourage you to review the prior webcast before attending this one.

Continuing education (CE) certificates of attendance will not be offered for this program.

Written by in: Events
Oct
21
2016

IRS Overhauls the Retirement Plan Correction Program

With the looming end of the determination letter program as we know it, the IRS has issued an updated Revenue Procedure for the Employee Plans Compliance Resolutions System (EPCRS). Released on September 29, 2016, Rev. Proc. 2016-51 updates theEPCRS procedures, replaces Rev. Proc. 2013-12 and integrates the changes provided in Rev. Proc. 2015-27 and Rev. Proc. 2015-28. The updated revenue procedure is effective January 1, 2017 and its provisions cannot be used until that date. Rev. Proc. 2013-12, as modified by Rev. Proc. 2015-27 and Rev. Proc. 2015-28, should be used for any corrections under the EPCRS for the remainder of 2016. Highlights from the new revenue procedure are outlined below.

Changes

  • Determination Letter Applications. Determination letter applications are no longer required to be submitted as part of corrections that include plan amendments. The new revenue procedure also clarifies that any compliance statement for a correction through plan amendment will not constitute a determination that the plan amendment satisfies the qualification requirements.
  • Favorable Letter Requirements. A qualified individually designed plan submitted under the Self Correction Program (SCP) will still satisfy the Favorable Letter requirement when correcting significant failures even if its determination letter is out of date.
  • Fees. The Voluntary Correction Program (VCP) fees are now user fees. Effective January 1, 2017 a plan sponsor must refer to the annual Employee Plans user fees revenue procedure to determine the applicable VCP user fees.
  • Model Forms. The model forms for a VCP submission (Forms 14568-A through 14568-I) can now be found on the IRS website.
  • Audit CAP Sanctions. The method used to determine Audit Closing Agreement Program (Audit CAP) sanctions has been revised. Sanctions will no longer be a negotiated percentage of the Maximum Payment Amount (MPA), but will be determined by the IRS on a “facts and circumstances” basis. The MPA will be one factor used to determine a sanction. Generally, sanctions will not be less than VCP fees.
  • Refunds. The IRS will no longer refund half of the user fee if there is disagreement over a proposed correction in an Anonymous Submission.

Incorporations

  • The provisions of Rev. Proc. 2015-27, which clarify the methods that may be used to correct overpayment failures, modify the SCP for Code Section 415(c) failures to extend eligibility to certain plans with repeated corrections of excess annual additions so long as elective deferrals are returned to affected employees within 9½ months after the end of the plan’s limitation year, and lower the fees for certain VCP submissions, have been incorporated.
  • The provisions of Rev. Proc. 2015-28, which modify EPCRS by adding safe harbor correction methods for employee elective deferral failures in both 401(k) and 403(b) plans, have also been incorporated into Rev. Proc. 2016-51.
Oct
10
2016

Register for IRS webinar: ACA Outreach for State and Local Governmental Employer Community

October 20 at 2 p.m. (Eastern)

Register for this event

This is a live webinar presented by the ACA Office and TE/GE Counsel to address governmental entities’ concerns and needs as they relate to ACA information reporting requirements.

Learn about:

  • Determining Applicable Large Employer (ALE) status
  • Identifying full-time employees
  • Defining hours of service
  • What is Minimum Essential Coverage?
  • E-Filing of information returns
  • 2016 filing season corrections and replacements
  • Penalties and relief
  • TIN solicitation
  • Changes to forms & instructions for Tax Year 2016
  • Questions and answers

We will not be offering Continuing Education Credit for this event.

Written by in: Events
Oct
04
2016

Webcast about clarifying the universal availability and other 403(b) retirement plan requirements

Watch this free webcast about Clarifying the Universal Availability and Other 403(b) Retirement Plan Requirements

When: October 27, 2016; 2 p.m. (Eastern)

How: Register for this event. You will use the same link to attend the event.

Learn about:

  • Hours of service
  • Changes in employee status
  • Student participation
  • Other 403(b) rules

This hour long webcast will provide answers to many of the questions we received for the May 19, 2016, Understanding the Universal Availability Rules in a 403(b) Retirement Plan webcast. We encourage you to review the prior webcast before attending this one.

Continuing education (CE) certificates of attendance will not be offered for this program.

Written by in: Events
Sep
28
2016

Register for IRS webinar: Overview of Requirements for Charitable Hospitals Under ACA Section 501(r)

September 29
2 p.m. ET

Register for this event.

The Affordable Care Act added additional requirements that affect tax-exempt hospitals.

Learn about:

  • Community Benefit Standard for 501(c)(3) Hospitals
  • Community Health Needs Assessment and Implementation Strategy
  • Financial Assistance and Emergency Medical Care Policy
  • Limitation on Charge Requirements
  • Billing & Collection Requirements
Written by in: Events
Sep
28
2016

Recent SEC Settlement Demonstrates FCPA Risks from Charitable Contributions

For just the second time in the Foreign Corrupt Practices Act’s (FCPA) history, a company was charged with FCPA offenses based solely on a charitable contribution that was intended to buy the influence of a foreign official.

On September 20, 2016, Utah-based Nu Skin Enterprises, Inc. paid almost $766,000 to settle SEC charges that it violated the internal controls and books-and-records provisions of the FCPA when Nu Skin’s China subsidiary (the “Subsidiary”) made a $154,000 payment to a charity. The SEC alleged that the charitable donation was to improperly influence a high-ranking Chinese Communist party official to prevent a provincial agency investigation of the Subsidiary.

Click here to read the Alert in full.

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