Horizons Fall/Winter 2019

For example, cyber security is a highly technical field requiring a very unique skillset. Finding the right talent that can quickly identify and address vulnerabilities, conduct network penetration testing, provide on-demand CISO support and other services may be challenging. Outsourcing this function will ensure that an entity has an independent third party with vast experience in this area to help navigate through these security risks in order to minimize the risk of compromise and breach. Another example is the preparation of the IRS 990 or 990-T tax return, which can be very time consuming if internal resources only work through that process once a year. In addition, there can be significant complexities due to legislation changes that are difficult to understand. As a result, the increased complexity has led many colleges and universities to address the potential impacts of these legislative changes by outsourcing the preparation of the related forms. For example, within the Tax Cuts and Jobs Act of 2017, there are new rules related to sources of unrelated business income, separate lines of business tracking, potential income inclusion for certain fringe benefits provided to employees, net operating loss deduction ordering rules and new excise taxes. In this evolving and highly-scrutinized area for the IRS, outsourced providers review potential sources of unrelated business income and help determine how the new tax law will impact those sources. Additionally, the IRS has provided guidance in Notice 2018-67 about the mechanics of the 2018 Form 990-T, which has new schedules, including Schedule M, to monitor the tracking of separate lines of business income, expenses and related net operating losses. The IRS has also recently provided information through Notice 2018-99, which outlines the four-step safe harbor

University Hiring Faces Tough Test

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