On December 20, 2019, President Trump signed the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (the “Act”) as part of the spending legislation to fund the government for the 2020 fiscal year. This Act also included a welcomed gift for nonprofits organizations:  a repeal of the infamous “parking tax”!Specifically, Section 512(a)(7) of the Internal Revenue Code was enacted in 2017 as part of the Tax Cuts and Jobs Act (i.e., tax reform legislation). This Code section required nonprofit employers to include the expenses attributable to employer-provided parking as unrelated business taxable income. Obviously, this provision created significant confusion and angst in the tax-exempt sector since the tax was imposed on an expense rather than income, which generated an unanticipated tax liability for many nonprofits.

The repeal of the “parking tax” is retroactive, as if the provision had never been enacted in the first place. Thus, tax-exempt organizations that have paid the tax in prior years are now eligible to file amended returns to claim a refund. The expectation is that the IRS will publish additional guidance regarding the refund process, and we will be sure to keep you posted.

We Can Help

If you have any questions, please contact Janice Ratica, Nonprofit Tax Services Leader at janice.ratica@elliottdavis.com.

The information provided in this communication is of a general nature and should not be considered professional advice.  You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.

Gone are the days when old-fashioned competition between companies was the biggest threat facing organizations; today, cyberattacks pose one of the most formidable challenges any business will encounter. For proof, you need look no further than news headlines, which are routinely peppered with reports of massive data breaches and cyber hacks at some of the country’s largest corporations.

Leading the way is Yahoo (known now as Altaba), which continues to pay fines and settle claims stemming from its August 2013 hack. In that case, cybercriminals stole names, email addresses, and passwords for 3 billion Yahoo customers.

The Marriott Hotels Group breach of late 2018 impacted far fewer people (500 million), but hackers were able to attain names, addresses, credit card numbers, and phones numbers and, in some cases, passport numbers, travel locations, and arrival and departure dates. In 2017, a cyberattack on Equifax compromised the personal information (Social Security numbers, birth dates, addresses, and in some cases drivers' license numbers) of approximately 143 million customers, more than 200,000 of which had their credit card data exposed.

While security breaches on this scale garner most of the media’s attention, the threat of attacks on smaller companies is no less real—and far more prevalent. According to the Ponemon Institute's 2017 State of Cybersecurity in Small & Medium-sized Businesses report, the percentage of small businesses that experienced a cyberattack increased from 55 percent in 2016 to 61 percent in 2017. What’s more, cyberattacks cost small- and medium-sized businesses an average of $2.2 million.

The effects of a security compromise can be particularly devastating to small companies, with the average cost ranging between $84,000 and $148,000. Worse still, 60 percent of impacted organizations go out of business within six months of an attack.

Those figures will likely increase. Cybercriminals are constantly finding new ways to infiltrate networks and information systems, and they’re discovering the path of least resistance is typically through smaller companies. It should come as little surprise, given the fact that many small- and mid-size businesses lack the resources to invest in adequate cybersecurity protection. Even those organizations that do have the means to address vulnerabilities often don’t understand where, why, or how to focus their efforts.

Considering the stakes and the impact that even a single cyberattack can have, the need for innovative solutions that mitigate risks has never been greater. That’s why, at a minimum, you should follow the steps outlined below to improve your chances of avoiding an attack or reduce the impact to your business should you be compromised:

Assess your overall cybersecurity posture

Before you can develop a plan to protect your business, you need to understand your company’s critical assets and current risks associated with cyberattacks, data breaches, and other threats. Cyber program assessments, incident response plan reviews, and internal and external technology vulnerability assessments are a few ways to identify areas of strengths and weakness.

Develop a plan

Once you have a better understanding of your critical assets and areas of greatest risk, you can prioritize where and in what manner to invest within your organization. The plan should include processes, procedures, and best practices to reduce threats and ensure client data, company information, intellectual property, and key applications are protected. It should also provide strategies to limit disruptions and speed recovery if and when a cyberattack occurs

Ensure compliance

Developing and maintaining a cyber risk management program is only part of the effort needed to protect your company from potential data breaches; you must also ensure your systems and processes comply with an increasingly stringent set of regulations and security requirements. Failing to comply with regulations can result in significant fines and other penalties.

Train employees

Quite often, employees are the weakest security links within an organization. That’s why it’s essential they understand the threat posed by cyberattacks and data breaches, and are equipped to help protect the company. This starts with training all team members to avoid emailed or online links that are suspicious or from unknown sources. These links can release malicious software, infect computers, and steal company data. Being able to recognize common social engineering risks is the first line of defense

Remain diligent

Protecting your business from cyber threats doesn’t end once you’ve developed and implemented a plan; it requires an ongoing commitment to protecting your data as well as your clients’ information. You must continually assess risks, make plans for mitigating them, implement solutions, monitor to ensure they work as expected, and use that information as feedback for your next assessment phase.

Greenville, S.C. (January 24, 2019) – Elliott Davis, a leading business solutions firm with nine offices across the Southeast and nearly 800 employees, today announced plans to move its corporate headquarters from the current location at 200 East Broad Street in downtown Greenville to a larger, more modern space at 435 South Main Street in the new Falls Tower building within the Camperdown development.

“We’re at an exciting point in the evolution of Elliott Davis,” said Rick Davis, CEO of Elliott Davis. “Our new headquarters is an extension of that evolution and will support the growth we’re experiencing throughout our firm. This space will provide the room and amenities to help us attract and retain the best talent in this very competitive market. Our employees are our most valuable asset, and we believe the design of this office will reinforce a culture that is highly collaborative and innovative.”

Located in a strategic setting on Main Street, the new headquarters underscores Elliott Davis’ commitment to the city it has called home since its founders opened the Greenville office in 1925. It will occupy 60,000 square feet across three floors, as well as a collaborative street-level space that the community and visitors alike will be able to enjoy. The expansion, which is scheduled to take place in November 2020, will accommodate the company’s anticipated future growth and facilitate the cross-practice collaboration that fuels innovation and enables the firm to deliver more value to its clients.

“On behalf of the City of Greenville, I’m absolutely thrilled at the commitment Elliott Davis is making to our great city by serving as the primary tenant of the highly anticipated Camperdown building on Main Street,” stated Mayor Knox White. “As one of the Top 40 accounting firms in the U.S., this is a true statement to our thriving economy and the exciting future we have ahead of us.”Elliott Davis’ new headquarters will house the firm’s growing number of local employees, its executive offices and the Greenville operations team, which includes tax, assurance, and consulting and advisory leadership. A shared-workspace environment, coupled with meeting rooms and common areas on each floor, will provide ample opportunities for employees to forge the cross-discipline relationships that foster creativity and ultimately yield holistic business solutions.

“The Camperdown team is ecstatic to be a part of the new Elliott Davis headquarters in the Falls Tower building,” said Brody Glenn, president of Camperdown’s developer, Centennial American Properties. “Local companies reinvesting in downtown is one of the reasons Greenville has become one of the best downtowns in the country. Elliott Davis is a great example of this and their commitment to being a corporate leader in Greenville for years to come.”

Camperdown is a “live, work, play” development scheduled to open in 2020. In addition to the Falls Tower building where the new Elliott Davis headquarters will be located, Camperdown will feature a 196-room AC Hotel; 80,000 square feet of retail space; a 609-space parking garage; and the largest public plaza in the city’s history.

About Elliott Davis, LLC

Elliott Davis, LLC is a leading business solutions firm offering a full spectrum of services in the areas of tax, comprehensive assurance, and consulting services to diverse businesses, organizations and individuals. With a network of nearly 800 forward-thinking professionals in major U.S. markets and alliance resources across the globe, the organization ranks among the Top 40 and fastest-growing accounting firms in the United States. Elliott Davis has been providing innovative solutions since its founding in 1920. Visit elliottdavis.com for more information.