IRS outlines new tax law effect on tax exempt organizations
WASHINGTON – The Internal Revenue Service wants tax-exempt organizations to know about recent tax law changes that might affect them. The Taxpayer Certainty and Disaster Tax Relief Act, passed on Dec. 20, 2019, includes several provisions that may apply to tax-exempt organizations’ current and previous tax years.
Tax simplification for private foundations
The legislation reduced the 2% excise tax on net investment income of private foundations to 1.39%. At the same time, the legislation repealed the 1% special rate that applied if the private foundation met certain distribution requirements.
The changes are effective for taxable years beginning after Dec. 20, 2019.
More info: https://www.irs.gov/newsroom/irs-outlines-new-tax-law-effect-on-tax-exempt-organizations