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Wagenmaker & Oberly provides legal counsel to NONPROFIT ORGANIZATIONS across the nation with offices in Chicago and Charleston.

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Health Reimbursement Arrangements: Bringing Back Flexibility

Thanks to a new federal rule, employers may more flexibly either (a) provide pre-tax reimbursements for their employees’ individual health insurance premiums and other expenses, or (b) pay such expenses directly on employees’ behalf.  Effective January 1, 2020, such pre-tax availability has been reinstated, following the Affordable Care Act (ACA)’s elimination and only a limited version under the 2016 21st Century Cures Act, but with some new twists. As a result, employers and their employees now enjoy more pre-tax options for health benefits, albeit with increasing complexity and varied conditions.

NONPROFIT LAW NEWSFEED

Bill responds to Salina LLC’s tax puzzle

The Ottawa Herald  A pair of elected officials from Saline County joined forces Tuesday to lend a hand to the Salina-based nonprofit humanitarian organization caught up in an unusual decision to block a property tax exemption.

Some Nonprofit Hospitals Aren’t Earning Their Tax Breaks, Critics Say

The PEW Charitable Trusts  On a recent morning at John H. Stroger Hospital, hardly a seat was to be had in any of the first-floor clinic waiting rooms. Not in audiology.

IRS revises Form 1023 for applying for tax-exempt status

IRS  As part of an ongoing effort to improve service for the tax-exempt community, the Internal Revenue Service has revised Form 1023 to allow electronic filing for the first time starting later this month.

How To Claim a Refund or Credit of Unrelated Business Income Tax (UBIT) or adjust Form 990-T for Qualified Transportation Fringe Amounts

IRS  If you wish to claim a refund or credit of the UBIT reported on your Form 990-T for 2017 or 2018 under Section 512(a)(7), you may do so by filing an amended Form 990-T as described in the form’s instructions and do the following as well.

U.S. Secretary of Education Betsy DeVos Announces Proposed Rule Regarding Equal Treatment of Faith-Based Education Institutions, Provides Updated School Prayer Guidance

U.S. Department of Education  Today, U.S. Secretary of Education Betsy DeVos announced that the Department of Education is taking several concrete actions to protect religious liberty and ensure the Department is acting in accordance with the First Amendment. The Department announced a proposed rule ensuring the equal treatment and constitutional rights of religious organizations and faith-based institutions, as well as First Amendment freedoms owed to students on campus. As directed by Congress, the agency will also release updated guidance regarding constitutionally protected prayer in schools.

Expedited Parking Tax Refunds Requested From IRS

ECFA  In a letter dated January 8, 2020, the U.S. House Ways and Means Committee leadership (Richard E. Neal, Ways and Means Committee Chairman and John Lewis Chairman of the Subcommittee on Oversight) have called on the IRS to establish an expedited process for tax-exempt organizations to obtain refunds of unrelated business income on parking and transportation benefits provided to their employees.

A woman sued a church for reporting her husband's sex abuse confession to the police

CNN  An Oregon woman whose husband is in prison for sexually abusing a child is suing the Church of Jesus Christ of Latter-Day Saints for reporting his confession to state authorities.

Virginia Supreme Court favors GMU Foundation in donor records suit

Fairfax County Times  As a privately held corporation, the George Mason University Foundation is not obligated to disclose records under the Virginia Freedom of Information Act, the Virginia Supreme Court determined on Dec. 12.

Baltimore’s Book Thing loses tax-exempt status, will temporarily shut down

The Baltimore Sun  The Book Thing of Baltimore lost its nonprofit status and will be temporarily shutting down after the new year, according to a statement posted to its website.

Mormon Church accused of stockpiling billions, avoiding taxes

CNN  The Church of Jesus Christ of Latter-day Saints, commonly referred to as the Mormon Church, responded Tuesday to a recently filed whistleblower complaint that accuses the church of stockpiling $100 billion in accounts intended for charitable works, misleading members and avoiding taxes.

Bill responds to Salina LLC’s tax puzzle

The Ottawa Herald  A pair of elected officials from Saline County joined forces Tuesday to lend a hand to the Salina-based nonprofit humanitarian organization caught up in an unusual decision to block a property tax exemption.

Some Nonprofit Hospitals Aren’t Earning Their Tax Breaks, Critics Say

The PEW Charitable Trusts  On a recent morning at John H. Stroger Hospital, hardly a seat was to be had in any of the first-floor clinic waiting rooms. Not in audiology.