As the COVID-19 pandemic continues, various not-for-profit organizations have experienced a decline in charitable contributions from supporters, and Congress responded with a new provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act – Public Law (P.L.) 116-136.

a computer screen with white numbers and red numbers in the shape of a heart; image used for blog post about charitable deductions provision under CARES Act

This provision aims to provide relief to charitable organizations. Under Section 2204, the provision allows for “a tax deduction for charitable contributions in 2020 up to $300 for taxpayers who do not itemize their tax deductions.” This is intended to encourage taxpayers to make contributions to charitable organizations by allowing a tax benefit even for those who do not itemize but instead use the standard deduction.

The Journal of Accountancy recently published an article providing more details about P.L. 116-136, which includes:

  • Qualifying for the deduction
  • Eligible individual
  • Qualified charitable contribution
  • Qualified charitable organization
  • Other considerations

For more information and resources about COVID-19, visit our website with the latest updates: www.PKFTexas.com/COVID-19.

To learn more about how the faces of PKF Texas serve the not-for-profit sector, visit www.PKFTexas.com/NotForProfit.

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Carlos Gomez, an audit manager and one of the faces of the PKF Texas Contract Compliance Services team. Carlos, will come back to the Playbook.

Carlos: Thanks, Jen.

Jen: Carlos, in previous editions we’ve talked about vendor management audits. What are those and how do those help a company in this type of situation?

Carlos: Typically, our clients benefit from having some visibility into their vendors with a vendor audit. It will help you identify any key issues and maybe recover some expenses that you happened to lose that weren’t in line with the agreement.

Jen: So, how does a vendor audit actually work?

Continue Reading What to Know About a Vendor Audit

The IRS has provided guidance to employers regarding the recent presidential action to allow employers the deferral of the withholding, deposit and payment of certain payroll tax obligations.

The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive memorandum signed on August 8.

dollar bills sitting underneath a medical mask; image used for blog post about deferral of employees' social security tax

Private employers still have questions and concerns about whether, and how, to implement the optional deferral. The President’s action only defers the employee’s share of Social Security taxes; it doesn’t forgive them, meaning employees will still have to pay the taxes later unless Congress acts to eliminate the liability. (The payroll services provider for federal employers announced that federal employees will have their taxes deferred.)

Continue Reading Deferral of Your Employees’ Social Security Taxes

A financial audit conducted by outside experts is among the most effective tools for revealing risks in not-for-profits. They help assure donors and other stakeholders about your stability — so long as you respond to the results appropriately.

booklets and papers stacked on a wooden table; image used for blog post about what happens after a financial audit for a not-for-profit

In fact, failing to act on issues identified in an audit could threaten your organization’s long-term viability.

Continue Reading After Your Not-for-Profit’s Financial Audit…

Does your private foundation have a detailed conflict-of-interest policy? If it doesn’t — and if it doesn’t follow the policy closely — you could face IRS attention that results in penalties and even the revocation of your tax-exempt status.

Image of a paper document shaped as a question mark with the words "conflict-of-interest policy;" used for blog post about private foundations needing a conflict-of-interest policyHere’s how to prevent accusations of self-dealing. Continue Reading Why Foundations Need Strong Conflict-of-Interest Policies

PKF Texas is pleased to announce the launch of a new niche within the audit practice: Contract Compliance Services, targeting companies who enter into agreements with one or more third parties.

PKF Texas has formed a dedicated service team to serve this sector, which includes Carlos Gomez, Audit Manager, Michael Veuleman, CPA, Audit Practice Leader and Brian Baumler, CPA, Audit Director (respectively in photo below).

Image of PKF Texas Contract Compliance team: Carlos Gomez, Michael Veuleman, Brian Baumler

Engagement types include franchise compliance, royalty audits, vendor management, licensing agency compliance, lease agreements, joint venture audits and third-party audit support.

Contract complexities can have financial, legal and/or potentially negative impacts on a company and its brand. The PKF Texas service team has uncovered financial benefits for clients, while ensuring proper treatment of intellectual property, copyrights and trademarks.

For more information about PKF Texas’ Contract Compliance Services, visit www.PKFTexas.com/ContractCompliance.

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Carlos Gomez, an audit manager and one of the faces of the PKF Texas Contract Compliance Services team. Carlos, welcome back to The Playbook.

Carlos: Thanks for having me again.

Jen: On our last video, you mentioned about franchise compliance, and that’s a type of audit that we do that we provide as part of our contract compliance services. What is a franchise compliance audit?

Carlos: Typically, the way a franchise is set up, they license a territory, certain rights; whether it be a restaurant, some type of service industry, from a franchisor who developed a plan, put together a program, how to really build a business. And so, when they license that right to get a franchise in a certain location, the franchisors just want to make sure they’re getting their—not only correct revenue, but that they’re obeying the terms of the agreement; whether that be marketing, advertising and treating the brand with respect.

Jen: Why should somebody be concerned if a franchisee is in compliance with their contract?

Continue Reading Franchise Compliance – A Closer Look

As trusted business advisors, we enjoy working with you to co-create ideas and co-develop innovative solutions for your business. Even amidst the COVID-19 pandemic, we still want to continue providing valuable information, including upcoming Houston events that we support, and think may be of interest to you.

  • TXCPA Houston
  • Greater Houston Partnership
  • National Association of Corporate Directors
  • Greater Houston Women’s Chamber of Commerce

If you have questions about any event details or registration information, the organization-specific contacts are below. We hope to see you at any or all of these Houston events!

Continue Reading Mark Your Calendars! Upcoming September 2020 Houston Events…

INSIDE Public Accounting Best of the Best Firms 2020 logoPKF Texas has been recognized by INSIDE Public Accounting (IPA) as one of 2020’s 50 Best of the Best Firms in the U.S. In addition, PKF Texas has been named a Top 200 accounting firm by IPA.

This is IPA’s 30th annual survey and analysis of firms, and this year, more than 540 firms were eligible for this accolade. The top performers within the accounting profession were ranked on more than 50 metrics, and the Best of the Best Firms list produce superior financial results while planning for long-term, sustainable growth.

The Top 200 rankings appeared in the INSIDE Public Accounting August 2020 newsletter. For complete lists for both award recognition, visit www.insidepublicaccounting.com.

Despite the COVID-19 pandemic, students are going back to school this fall, either remotely, in-person or under a hybrid schedule. In any event, parents may be eligible for certain tax breaks to help defray the cost of education.

an apple sitting on top of a stack of books next to colored pencils and A-B-C blocks; image used for blog post about educational tax breaks

Here is a summary of some of the tax breaks available for education.

Continue Reading The Tax Breaks Available for Education