About BCo Author

This author has not yet filled in any details.
So far BCo Author has created 51 blog entries.

Interest Rates Increase for the Fourth Quarter 2023


IRS interest rates are increasing to 8% (and up to 10% for large corporate underpayments) starting October 1, 2023.  See below for detailed information regarding IRS Revenue Ruling 2023-17.

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily.  Here is a complete list of the new rates:

  • 8% for overpayments (payments made in excess of the amount owed),
  • 7% for corporations.  5.5% for the portion of a corporate overpayment exceeding $10,000.
  • 8% for underpayments (taxes owed but not fully paid).
  • 10% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the […]

By |September 1st, 2023|Categories: BCo Community News|Comments Off on Interest Rates Increase for the Fourth Quarter 2023

IRS Doubles Down on Substantiation of Health and Dependent Care Expenses


The IRS recently cautioned employers that the tax-free status of all benefits provided under their Internal Revenue Code (IRC) Section 125 cafeteria plan could be lost if employees are allowed to self-certify or use shortcut methods to substantiate reimbursable expenses.

Failure of the substantiation requirements for any plan benefit causes the amount of all benefits elected by employees under the Section 125 plan to be includible in every employee’s taxable wage income reported in Boxes 1, 3 and 5 of Form W-2 and subject to income and employment tax withholding. Plus, the employer must pay its share of Social Security and Medicare taxes on such amounts. The primary cafeteria plan benefits that require substantiation are health insurance premiums, health flexible spending accounts (FSAs) and dependent care (FSAs). Failures in any of […]

By |July 25th, 2023|Categories: BCo Community News, IRS|Comments Off on IRS Doubles Down on Substantiation of Health and Dependent Care Expenses

Demystifying Nonprofit Cost Allocations


When asked what is at the top of their finance department “to-do” list, many nonprofits name the need for an updated cost allocation plan. An effective cost allocation strategy is essential to organizations’ understanding of how their resources are being deployed. It is also integral to performing cost analyses, such as evaluating funding requirements and comparing actual versus budgeted costs.

Allocations are an efficient and effective way to distribute costs across activities, including programmatic, administrative and fundraising work. However, many find the practical application of allocation concepts challenging to navigate. While some costs are easily assigned to specific activities and do not need to be allocated at all, there are certain costs that need to be proportionately distributed across activities and the organization, magnifying the potential for complexity and errors.

Allocation Methods

When […]

By |July 19th, 2023|Categories: BCo Community News|Comments Off on Demystifying Nonprofit Cost Allocations

Managing Pay for Disqualified Individuals

The title of this article might have caught the eye of some readers, who may have thought it provides tips on managing pay for poor performers or offers a rationale for employing individuals without proper job qualifications.  However, this article focuses on “disqualified individuals” in the context of IRS intermediate sanctions — IRC Section 4958 — and the management of compensation paid to those individuals.  It is an area that receives considerable attention from the IRS and the general public.  Failure to manage it well can result in lingering reputational damage, as well as punitive taxes and penalties for all involved.

The term “disqualified individuals” is defined as individuals in a position to exercise considerable influence or control over the affairs of an IRC Section 501(c)(3) or Section 501(c)(4) tax-exempt organization.  […]

By |July 17th, 2023|Categories: BCo Community News|Comments Off on Managing Pay for Disqualified Individuals

IRS Drastically Expands Electronic Filing Requirement for 2023 Tax and Information Returns


The Internal Revenue Service finalized regulations on Feb. 23, 2023, significantly expanding mandatory electronic filing of tax and information returns that require almost all returns filed on or after Jan. 1, 2024, to be submitted to the IRS electronically instead of on paper.

Under the new rules, filers of 10 or more returns of any type for a calendar year generally will need to file electronically with the IRS.  Previously, electronic filing was required if the filing was more than 250 returns of the same type for a calendar year.

The discussion below focuses primarily on common workplace IRS information forms, such as Form W-2 and 1099 filings and employee benefit plan filings, but the new rules broadly apply to other types of returns.


Affected employers may need significant lead time to implement […]

By |July 12th, 2023|Categories: BCo Community News|Comments Off on IRS Drastically Expands Electronic Filing Requirement for 2023 Tax and Information Returns
Go to Top