F990 PREPARING THE FORM 990 FOR NONPROFIT ORGANIZATIONS
The object of this course is to train both new and experienced staff accountants and other preparers to deal with the challenging aspects relating to the filing of the Form 990 series of tax returns. This course offers a practical, hands-on approach to completing one of the most difficult tax forms.
Major Topics:
Filing requirements for Forms 990 and 990EZ with phased in thresholds
Electronic filing requirements
Preparation of the required summary of the organization’s mission, activities, and current and prior years’ financial results
Statement of program service accomplishments – reporting of new, ongoing, and discontinued achievements and their related revenue and expenses
Statements regarding other IRS filings and tax compliance Governance, management, and disclosure – information regarding governing body and its management, policies, and disclosure
Compensation schedules for officers, directors, and key employees
Supplemental financial statements – support balance sheets, endowments, donor advised funds
Schedule of activities outside of U.S. – breakdowns
Supplemental information relating to fundraising or gaming activities
Grants or other assistance to organizations, governments, and individuals
Transactions with interested persons that engage in certain relationships or transactions
Non-cash contributions Political expenditures and lobbying restrictions Reconciliations between book and tax returns
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THE TOP 50 MISTAKES PRACTITIONERS MAKE IN NONPROFIT TAXATION AND GOVERNANCE ISSUES AND HOW TO FIX THEM
The nonprofit sector is growing by leaps and bounds. From 1996 to 2006, the number of public charities increased 68.7%, going from 535,930 to 904,313. Congress and the IRS are now scrutinizing nonprofits in much greater depth. New applications for tax-exempt status are being analyzed more thoroughly, and Form 990 is being revised to provide more in-depth information that will enable both the IRS and donors to evaluate organizations. This unique course will enable CPAs to serve their existing clients in an improved manner as well as open markets to this growing client base. The class will include recent legislative changes and court cases affecting the nonprofit sector and revisions to Form 990.
Major Topics:
Nonprofit Formation and Governance
Mistakes in preparation of the IRS application for tax-exempt status cause entities to be denied tax exempt/public charity status because of a lack of understanding as to IRS requirements.
Many organizations fail because of poor planning in structuring a new nonprofit and creating a strong board of directors
Not handling conflicts of interest properly may cause embarrassment and potential personal liability for the directors
Fundraising activities may be illegal or unethical under federal or state law
Mistakes in establishing internal control procedures in a nonprofit organization can cause the risk of misappropriation and embezzlement
Did the organization need to be created when something simpler, like a donor advised fund or partnering with an existing organization, could have substituted? Was time and money wasted?
Is the organization realistic in obtaining funding in an extremely competitive philanthropic environment?
Nonprofits fail even with admirable intentions
Does the client have to file a tax return under the new guidelines?
The Form 990 is a public document
Are mistakes made in communicating the accomplishments of the organization?
A 1040 or 1120 is not a marketing tool – the Form 990 is the best tool for growth of an organization.
Unrelated Business Income Tax (UBIT) - Avoiding mistakes in treatment of certain types of revenue which could result in tax consequence or possible termination of tax exempt status
Reconciling book income to the tax return; i.e. in-kind donations may provide a clearer picture of the operation of the entity
Eliminating mistakes in classifying expenses as program services, administration, or fundraising to comply with IRS guidelines and charity watchdogs like the BBB will project a better image of the organization
Do you realize that it is the responsibility of a charity to communicate the quid pro quo value of things that are provided in return for money given to a charity?
Tax shelters and nonprofits – Certain joint ventures are OK, but abusive tax shelters are not – avoiding the mistakes!
Avoiding penalties asserted by the IRS and states – what is contestable?
Donations of tangible property – determining FMV, basis, and utilizing IRC 170(e)(3) for donations of inventory and depreciable assets.
Mistakes are made in soliciting donations from businesses, resulting in missed contributions to the charity and smaller dollar deductions by the contributor Designed for: CPAs who wish to avoid the expensive tax and planning errors often made by nonprofits and their benefactors.
What you will learn: Identify the major errors in forming a new nonprofit organization, which could result in embarrassment and potential liability to its directors
How to assist clients with planning strategies to grow and sustain their organizations in the future
Preparing the newly revised Form 990 and avoiding mistakes with the IRS and state tax authorities and put the best image out relating to the organizations
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NEW! PREPARING THE NONPROFIT SERIES OF TAX RETURNS (FORMS 990N, 990EZ, 990, 990T, AND 990PF) FOR NEW STAFF AND PARA-PROFESSIONALS
This course provides basic instruction for new preparers and para-professionals who will prepare the complicated series of nonprofit tax returns.
Special emphasis will be placed on understanding the redefined Form 990 and the broad area of questions it includes.
Topics will include filing thresholds and requirements, definition of unrelated business income and its taxability, distinguishing between a publicly supported organization and a private foundation, accurate reporting of contributions and revenue, and reconciling income per book to the tax return.
Major topics:
Preparation of reasonably complicated Forms 990-EZ, 990, 990-T, and 990-PF
Reporting of compensation
Accounting for grants and contributions
Noncash contributions
Preparing narrative descriptions of activities
How to determine what constitutes unrelated business income
Overview of the various forms and schedules included with the returns
Time-saving techniques for gathering the required filing information
Guidelines for Electronic Preparation of Form 990-N Learning
Objectives:
Understand how to prepare the entire 990 series of tax returns - 990, 990 EZ, 990 PF, 990N and 990 T
Understand the basic tax laws and IRS procedures dealing with nonprofit taxation issues
Learn how to write the various narratives that are required in the documents
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THE TOP 50 MISTAKES PRACTITIONERS MAKE AND HOW TO FIX THEM: DEALING WITH THE INTERNAL REVENUE SERVICE
Tax practice and the resolution of tax problems with the Internal Revenue Service can be tedious and outright challenging. This course will show practitioners how to navigate through the confusing IRS system. It will help them save time and enable them to avail their clients of all the rights to which they are entitled. The techniques and tools this course provides will make tax practice less “taxing.”
Major topics:
Collection
Mistakes in handling IRS liens, levies, and installment agreements
Statutes of limitation on collection
Audit reconsideration after assessment
Innocent spouse relief
Offers in compromise
Preparing IRS financial statements for clients
Collection due process hearings
Claims for refund
Examination Return selection process for examination: how to avoid unnecessary audits
Burden of proof : substantiation and use of oral testimony to substantiate expenses
Setting the scope of examination with IRS examiner: how to determine what the IRS is looking for
Dealing with IRS correspondence exams
Partnership/S corporation/LLC audits
Failure to file situations
IRS summonses and enforcement procedures
Statute of limitations issues
Tax shelters: avoiding abusive tax shelters and pre-filing notification letters
Appeals
Preparing protests to the IRS 30-day letter
Working and resolving issues with the IRS Appeals Office
Negotiating settlement agreements and closing agreements
Technical assistance
Requesting a private letter ruling or technical advice memorandum
Securing IRS §444 elections for S corporations
Exempt organization determinations
Penalties and interest Abating penalties – failure to file, pay, estimate, deposit, and others
Avoiding substantial underpayment of tax and valuation misstatement penalties
Avoiding return preparer penalties
Avoiding the filing of frivolous tax returns
Criminal tax procedures
Bank Secrecy Act/ currency transactions
Dealing with the IRS special agent
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