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On September 17, 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.
Contributed nonfinancial assets, also known as gifts-in-kind (GIK), can include fixed assets, such as land, buildings, and equipment; use of fixed assets or utilities; materials and supplies, such as food, clothing, and pharmaceuticals; and intangible assets and/or recognized contributed services.
The new ASU was issued to address concerns some stakeholders had about the lack of transparency in the financial statements regarding the amount of GIK received and used in an entity’s programs and other activities.
The King County Treasurer’s Office has informed taxpayers that, despite extending the April 30th payment deadline for first-half 2020 property tax bills, it will not extend the October 31st payment deadline for second-half 2020 property tax bills. Instead, King County is offering payment plans to all delinquent taxpayers for the full 2020 tax year. If a payment plan is established before the end of November 2020, the taxpayer will avoid the 8% penalty that would otherwise be assessed on 2020 taxes unpaid as of December 1st.
How the Payment Plan Works
Payment plans for the 2020 tax year can extend payment for up to 18 months;
COVID-19 has upended our daily lives, and many companies are searching for ways to aid their employees through the ongoing challenges of the moment. Thankfully, there is a little-known tax provision (IRC Section 139) which provides for disaster relief payments that can help employers support their workers.
In a federally declared disaster, IRC Section 139 allows employers to provide employees with disaster assistance on a tax-free basis to the employee, and the employer receives a tax deduction as well.
About the Provision
On March 13, 2020, President Trump issued an emergency declaration under the Robert T.
For business and occupation (“B&O”) tax purposes, taxpayers earning apportionable revenue calculate their taxable Washington revenue by applying a “receipts factor” apportionment methodology. Taxpayers computing B&O tax in this manner are required to complete and file an Annual Reconciliation of Apportionable Income form with the Department of Revenue.
When is the Annual Reconciliation of Apportionable Income Form Due?
The form must be submitted to the Department of Revenue by October 31st of each year. Failure to timely file the reconciliation form may result in penalties.
Who Must File?
In-state taxpayers that earn income from apportionable business activities performed for customers located inside and outside of Washington may apportion such revenue to Washington for B&O tax purposes.
April 8, 2021 Update: The Legislature has enacted a specific exemption from the B&O tax for qualifying grants received on or after February 29, 2020. Read more here.
The Washington State Department of Revenue (DOR) recently published guidance regarding its view on whether federal COVID-19 related financial assistance is subject to the Business & Occupation (B&O) tax (including loan forgiveness under the Paycheck Protection Program [PPP]).
According to the guidance, the DOR indicates that it does not believe the financial assistance is includable in the measure of the B&O tax, and that taxpayers should not report such amounts.
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