The Catholic University of America

Welcome to the Tax section of our webpage. This front page will reflect our most current information on tax law affecting educational institutions.

IRS Notice 2019-09 Interim Guidance by IRS on Tax Cuts and Jobs Act new tax on highly paid University officials. This is a 92 page document advising on how to report and pay the excise tax. Regulations will be issued.  

 

IRS releases Draft Form 4720 for Excise Taxes on Endowments, Executive Compensation-NACUBO, 9-28-18 

Section 4960 of the IRC, enacted in the Tax Cuts and Jobs Act (TCJA), imposes an excise tax equal to 21 percent of the sum of the compensation exceeding $1 million for the taxable year with respect to any covered employee and any excess parachute payment paid by the organization to any covered employee.

An institution is subject to the excise tax on endowments if it meets the following threshold tests:

(1) The institution has at least 500 tuition-paying students, based upon a daily average student count, during the preceding tax year;

(2) More than 50 percent of those students must have been located in the United States; and (3) At the end of the preceding tax year, the aggregate fair market value of the assets that are not used directly in carrying out the institution’s exempt purpose and are held by the institution and related organizations must be at least $500,000 per student.

Notice of Proposed Rulemaking for Filing Endownment Excise Taxes on Form 4720, 83 Fed. Reg. 55653, Nov. 7, 2018

 

DC Tax Exemption Renewal Requirement starting in 2019

Beginning January 1st 2019, nonprofits exempt from DC franchise, sales/use, and property taxes must reapply for exemption every 5 years or face being reclassified as fully taxable.

See Tate and Tyron: It's Here! DC Exemptions will begin Expiring in 2019 
This reference has a step by step guide on how to renew the exemption.