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Wellness is Alive & Well in the 11th Circuit

August 23, 2012

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From BenefitsBryanCave.com

On Monday, the Eleventh Circuit Court of Appeals ruled in Seff v. Broward County that Broward County, Florida’s wellness program qualified for the Americans with Disabilities Act (ADA) bona fide benefit plan safe harbor and therefore was not discriminatory under the ADA. This is a helpful ruling for employers maintaining or looking to implement wellness programs.

Background. The ADA generally provides that an employer can only require medical examinations of its employees if they are job-related and consistent with business necessity. However, the ADA also says that it is not intended to prohibit an employer “from establishing, sponsoring, observing or administering the terms of a bona fide benefit plan that are based on underwriting risks, classifying risks, or administering such risks that are based on or not inconsistent with State law.”

The Case. In the case, Broward had a wellness program with biometric screening and

AICPA Releases Draft Not-for-Profit Guide

August 20, 2012

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The AICPA’s Financial Reporting Executive Committee has issued a working draft of the accounting content of a proposed Audit and Accounting Guide, Not-for-Profit Entities.  This draft guide addresses many new accounting issues that have emerged over the years and includes guidance dedicated specifically to not-for-profit entities. A copy of the draft guide may be obtained by clicking here.

IRS Exempt Organization Newsletter 2012-13

August 15, 2012

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On August 13, the IRS released its Exempt Organization Newsletter, Issue Number 2012-13. Topics include the following:

  • View webinar on authorizations of disclosure of tax information to third parties Aug. 29
  • Sign up for the IRS Nationwide Tax Forum in Chicago
  • Notice 2012-52: Charitable contributions to domestic disregarded entities
  • PTIN system improved
  • RPO and OPR delegation orders available
  • Register for upcoming SMS workshops
  • New pub for conduit issuers of tax-exempt bonds
  • IRS can help when starting a small business

Possible Revisions To Section 501(C)(4)

August 13, 2012

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Background

Section 501(c)(4) of the Internal Revenue Code provides, in relevant part, an exemption for “[c]ivic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare.”  With respect to the meaning of “exclusively”, the regulations provide that “An organization is operated exclusively for the promotion of social welfare if it is primarily engaged in promoting in some way the common good and general welfare of the people of the community.”[1]   In order to be recognized as exempt under Section 501(c)(4), an organization must file a Form 1024 with the IRS. 

IRS Finally Approves Deductibility of Contributions to Domestic LLCs Wholly Owned by Charities

August 2, 2012

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Tax practitioners have long believed that donations could be made to single member LLCs wholly owned by section 501(c)(3) organizations on the theory that, for tax purposes, the donation was treated as made to the charity and not the LLC.  In long awaited guidance, the IRS has finally agreed in Notice 2012-52.  The analysis in the notice is not surprising, and is in fact, exactly what tax practitioners have been arguing ever since disregarded entities came into existence.

Generally, a business entity that has a single owner and that is not a corporation is treated as disregarded as an entity separate from its owner.  These “business entities” are typically limited liability companies. If an entity is disregarded, its operations and activities are treated in the same manner as a sole proprietorship, branch, or division of the owner, and the owner generally reports all income, loss, deductions, and credits on its own tax

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