Understanding Unrelated Business Taxable Income For most 501(c) organizations, tax‐exempt status is central to their ability to operate effectively and focus resources on their mission. However, having a tax-exempt status does not mean every dollar an organization earns is automatically free from taxation. One of the most important — and often overlooked — concepts in
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INCOME TAXES AND BANKRUPTCY
Income Taxes and Bankruptcy Filing for Chapter 7 bankruptcy involves specific requirements and carries implications regarding income taxes and bankruptcy for individuals. These implications may include focusing on filing requirements, the creation of a separate bankruptcy estate, the dischargeability of certain older tax debts, and tax refunds as potential assets. Pre-Filing Tax Requirements Before filing for
Student Loans and Chapter 7 Bankruptcy
Chapter 7 Student Loans Many people assume that student loans can never be discharged in Chapter 7 bankruptcy. While it is difficult to achieve this goal, it may not be impossible. Introduction In 1976, Congress made it exceedingly difficult to discharge student loans. This was in response to media attention concerning individuals who successfully filed
Why Corporations Must Strategize Charitable Giving Now: Navigating the 2026 Deduction Floor
Corporate Charitable Giving Strategy Corporate charitable giving strategy faces significant changes starting in 2026, as new tax legislation introduces a minimum threshold that could reduce or eliminate deductions for many businesses. The One Big Beautiful Bill Act has added complexity to corporate charitable contribution rules that C corporations must understand to plan their giving strategies
Starting a 501(c)(3) Nonprofit Organization and Securing Federal Tax-Exempt Status?
Starting a 501(c)(3) Nonprofit Organization Starting a new charitable organization is a significant undertaking, driven by a powerful commitment to addressing a public need. This journey demands more than just passion; it requires a structured, meticulous approach to legal formation and governance. Individuals who decide to enter the non-profit world must understand that the long-term
Understanding the Process: What Nonprofits Need to Know About IRS Revocation
IRS Revocation Process Obtaining and keeping federal tax-exempt status under Section 501(c)(3) is fundamental to the operations of charitable organizations. This designation allows donors to claim tax deductions and ensures the entity does not pay corporate income taxes on its core mission income. Despite this protection, news reports frequently discuss calls for the immediate IRS
Parlay Problems: Tax Treatment of Gambling Losses Under the One Big Beautiful Bill Makes Losing Bets Even Worse
Tax Treatment of Gambling Losses Under the One Big Beautiful Bill “Did your parlay hit?” asks your significant other across the table from you at Sunday brunch. The football game is down to the final seconds…and your bet just went sideways. You lower your head in shame. Another week, another parlay loss. We have all
How the One Big Beautiful Bill (OBBB) Affects Private Universities and Colleges
RJS LAW – Your Trusted Nonprofit Lawyers for Compliance, Formation, and Audits From The Billboard To Your Inbox! The One Big Beautiful Bill (OBBB), passed by the 119th United States Congress contains numerous tax and spending regulation changes. With the goal of adjusting how large endowments are treated under the tax code, the OBBB made
EDD Payroll Tax Audits – What is the EDD Looking For?
EDD Payroll Tax Audits Being a tax-based law firm, RJS LAW receives many calls from business owners facing Employment Development Department (EDD) Payroll Tax Audits. The EDD Audit process can seem confusing and overwhelming. The EDD auditor may ask for several documents or may be asking questions of the business owner and the business’ employees.
CDTFA: California Sales Tax Audits of Restaurants and Coffee Shops – How Things Can Go Wrong
CDTFA: California Sales Tax Audits Like many other businesses in California, coffee shops and restaurants are subject to California Department of Tax and Fee Administration (CDTFA) sales tax audits. The recent California Office of Tax Appeal (OTA) decision in the Dinosaur Coffee case highlight a couple of potential pitfalls restaurants, coffee shops, and other eateries