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Form 990 Instruction

• All audio is streamed through your computer speakers. • There will be several attendance verification questions

during the LIVE webinar that must be answered via the online quiz at the conclusion to qualify for CPE.

• Today’s webinar will begin at 2:00pm EDT• Please note: You will not hear any sound until the

webinar begins.

Form 990 Instruction

Presented by: Kay K. Mortimer, EA

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Learning Objectives

• Identify the different Forms 990 and uses• Determine appropriate Form 990 and due date• Learn to prepare the most common Forms 990 • Determine the appropriate public charity status and public

support tests to use• Identify the basics of UBIT (Unrelated Business Income Tax)• Implement sound strategies for nonprofits

“Deer in Headlights” Look?

•Client walks in, bringing the infamous box of records.– “I have a nonprofit and I need someone to do my 990 form.”

• Muttering to yourself: Your what?

•What do you do?– Send client elsewhere?– Smile and fake it, while you frantically try to find out what a

990 form is?– Shake the persons’ hand and confidently say, “Sure I can

help you with that.”

What is Form 990?

•A series of federal information returns filed by nonprofit organizations (NPO’s).– Tax or information?

•Unless specifically exempted, all NPO’s must file•NPO’S: non-tax-exempt or tax-exempt (TE’s).

– Explain difference• Ex. Private foundations

Nonprofit Forms required

•Form 990 Series– 990-N– 990-EZ– 990 (Long Form)– Additional 990’s – T, PF, Applicable Schedules

•Public disclosure•State or local filings (as appropriate)

– Beyond scope of this webinar

Various Organizations

•Non tax-exempt organizations, such as:– Homeowner’s Associations– Business Leagues– Veteran’s Associations

•NPO’s but not C3’s– File such Forms as 1120-H, 990-PF, 5500, etc.

• Not covered in detail in this webinar

•TE’s– 501c3 organizations (C3’s)

• Primarily covered here, as these are the most common

Filing Specifics

•Deadline– 15th day of the 5th month following the close of the fiscal year

• May 15th for calendar year

– If liquidated, dissolved, terminated, etc.• Due 15th day of 5th month following liquidation, dissolution, or

termination

– 3-month extension – Form 8868

•How to File:– 990-N – (E-postcard)– 990-EZ or 990 – E-filed or or mailed:

• Internal Revenue Service Center, Ogden, UT 84201-0027 • For Private Delivery services, see www.irs.gov for delivery info

Basic Forms for C3s

• 990-N– Annual gross receipts of $50,000 or less

•990-EZ– Annual gross receipts of $200,000 or less AND total assets

less than $500,000

•990 (Long Form)– Annual gross receipts greater than or equal to $200,000 – OR, total assets greater than or equal to $500,000

Form 990-N

•E-Postcard•Annual gross receipts normally $50,000 or less•Can choose to file 990 or 990-EZ (if not required)•Electronically file: http://epostcard.form990.org•Easy to complete:

– EIN, Tax Year, Legal Name and Mailing address (and other names used)

– Principal officer information and organization’s website info– Confirmation that annual receipts meet the requirement– Termination statement (if applicable)

Form 990-EZ

•Top Section (A-L)– Mostly self-explanatory – complete appropriately– Pending application – 1023?– Amended?– Item F – parent organization supplies (if applicable)– Item H, J, K, L

990-EZ Part I & II

•Pt. I -Summary of Revenues, Expenses and Changes in Net Assets– Form 990 requires this in more detail– Discuss various lines– Schedule O

•Pt. 2 – Balance Sheet– A & B required

Part III & IV

•Program services– Defined– Examples– Steps to take

•List of Officers, etc.– Columns A-E– Paid or unpaid– Taxable and nontaxable benefits– Accountable vs. nonaccountable plans

Part V

•Complete all required, Schedule O if needed•UBI? •Political?•Other taxes?•Donor-advised funds•Controlled entity

Part VI

•Lobbying?•School?•HCE’s•HCC’s•Signatures

Miscellaneous

•Exempt organization reference chart•Public inspection

– Complying– What to include– Widely available

•UBIT•Excess Benefit Transactions & Sec. 4958 taxes•Other

Form 990 - Basics

•Long Form•Similarities with EZ•More detail

– Various sections– PS, Mgt/Gen, Fund-Raising– Governance & compliance questions and checklists– Part VIII, IX, and X – detailed breakdowns– Part XI and XII

Other Forms

•Schedule A – required•Schedule B•Schedules C through O (as required)•Payroll and other tax reporting•1099 forms•Helpful publications and resources

Requirements for Schedule B

Public Support and Status Tests

•Public Support Tests– Explain

•Public Charity Status– Differences

Sound Strategies and Contribution Reports•C3 reporting requirements

– Statements• What to include• Due date and frequency• Required statement• Quid Pro Quo

•Recordkeeping•Grants

– C3s - applying– Recordkeeping and Reports

Resources and Links

•Form 990-N, 990EZ and Form 990 Instructions•Form 1023 or Form 1024 and instructions• IRS Pub 557, Tax-Exempt Status• IRS Pub 4221-PC, Public Charities Compliance Guide• IRS Pub 598, UBIT•Form 990-T and 990-W (UBIT and Estimated Tax)•www.irs.gov•State Secretaries of State and Revenue Departments•www.sba.gov

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Questions?Questions?

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Thank you for participating in this webinar.Below is the link to the online survey and CPE quiz:

http://webinars.nsacct.org/postevent.php?id=15874Use your password for this webinar that is in your email confirmation.

You must complete this survey and the quiz or final exam (for the recorded version) to qualify to receive CPE credit.

National Society of Accountants1010 North Fairfax Street

Alexandria, VA 22314-1574Phone: (800) 966-6679

members@nsacct.org

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