Your best tax client, serving on the board of a charity or a school may hand you the opportunity to prepare “the tax return” for the entity. It’s not a tax return, of course, but an information return. You will need to identify the information required by 12 “Parts” and 16 “Schedules” You need to separate and calculate Unrelated Business Taxable Income. The Form 990 may be the easy part. The real work will come in preparing the Schedules, and maybe a Form 990-T.
Enrolled Agent Approved
CPAs who prepare required reporting forms and Schedules . . . for Form 990 and its “cousins” (990-EZ, 990-PF, 990-T and 990-N) for tax exempt organizations, and who advise individuals serving as Board members of such entities on their responsibilities for meeting operational rules.
- Determine which Form 990 Schedules will be required.
- Identify and report any Unrelated Business Taxable Income.
- Know the special rules for reporting transactions on each “Schedule,” by each type of 990 filer.
- Identify and summarize for presentation in the Form’s “Schedules” all special information required to be reported, such as Lobbying activities in Schedule C.
- Understand special rules for functional accounting to report income and expenses.
- Understand special accounting rules for restricted and unrestricted grants.
- Reporting compensation information . . . what’s in – what’s out.
- Compliance accounting and reporting for non-cash contributions
- Purpose of Form 990
- Non-financial reporting in Form 990
- Unique accounting and reporting for common transactions of tax exempt organizations, functional accounting, income and expense classification, presentation of restricted assets, etc.
- Reporting and properly calculating Unrelated Business Taxable Income (UBIT).
- Which “Schedules” are required, what information is required, what summaries are permitted, what can be protected.