Taxes
Our tax advisors help you define the right overall tax position to reach compliance and meet your business goals. We’re focused on deadlines and compliance, but our larger goal is tax management.
Maintaining tax-exempt status and avoiding various IRS enforcement sanctions is vital to your organization. Our tax consultants assist clients by keeping them abreast of changes in tax laws and enforcement policies, focusing transactions to avoid private inurnment issues, minimizing unrelated business income and the related income tax and maintaining qualified employee benefit plans. We also prepare a large number of Forms 990, 990T and 5500.
At RSM McGladrey, we offer the following tax services:
Intermediate sanctions
Intermediate sanctions is the most important law affecting exempt health care organizations to pass in 30 years. It is a relatively new and largely misunderstood federal law, which is designed to ensure that an organization’s assets are dedicated to charitable purposes. It applies to all economic benefit transactions, such as compensation and benefits, between an exempt organization and its board members, officers, managers and others deemed as disqualified.
Recently, the law has become a hot topic for the IRS, and the agency is making a big push for compliance. Penalties are severe for noncompliance and can apply to a broad range of transactions and have an impact on a large number of an organization’s strategic decision-makers. If a transaction is not at fair market value, a disqualified person can be assessed a penalty of up to 225 percent of the benefit’s amount in excess of the fair market value. More damaging, some organizations can even lose exempt status by not complying with this law.
Joint venture analysis
Joint ventures can be a smart and beneficial move for many businesses, but that all depends on which types of organizations unite. For example, a tax-exempt organization that participates in a joint venture with a for-profit entity risks losing its exemption status and paying unrelated business income tax on income received from the joint venture. Through our joint venture analysis services, we help your organization plan a joint venture to maintain your organization’s exempt status.
Revenue stream analysis for unrelated business income
With this comprehensive service, our tax consultants analyze whether your organization’s fund-raising revenue stream — including gaming, auctions and other efforts — comply with laws surrounding unrelated business income. This analysis helps your organization improve revenue through tax law compliance and strategy.
Community benefit standard analysis
This service is designed to efficiently determine whether the activities of an organization meet the community benefit standard requirement for ongoing exempt status. Our service assesses compliance in light of the most recent developments of this standard, which are the result of IRS and judiciary rulings.
Tax planning and compliance
Additional tax planning and compliance services we offer include:
- Help to determine sales and use tax obligations related to sales tax on items sold or use tax on items you purchase
- Tax consultation on multi-entity systems
- Penalty exposure review relating to IRS W-2 and 1099 reporting requirements
- Tax planning for new business opportunities
- Tax analysis of physician compensation arrangements and contracts
- Review and structure of employee benefit plans
- Federal tax exemption applications
- Federal private letter ruling requests
- Assistance with IRS examinations
- Consultation regarding state sales, real property and income tax
- Consultation regarding charitable gifts
- Federal and state tax compliance advice
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