NOW AVAILABLE: ILLUSTRATED SAMPLE FORM 990 WITH “LEARNING” PROMPTS geared to small/medium organizations
In light of the 2009 990 Instructions and Form, there is more clarity on “what the IRS wants” from all filers (the 2009 Instructions both incorporate the 2008 Form/Instructions’ FAQ’s and fine-tune some of the Instructions’ most-complicated reaches, for example, Part VII compensation reporting). To help organizations understand the 2008 and 2009 Forms I have created a “new” and “improved” illustrated sample return that both incorporates the latest IRS directions and, more importantly, flags common-areas-of-misunderstanding and answers the most-often-heard questions. This sample can be accessed upon either the 2008 or 2009 Core Form Borenstein’s Illustrated 2008 Form 990 Borenstein’s Illustrated 2009 Form 990 A sample Schedule A is available too: Borenstein’s Illustrated 2009 Schedule A.pdf
ADDITIONAL HELPS AND PRODUCTS Following are:
[This section is continually updated, so check back often!]
MANAGERS’ QUESTIONNAIRES: Eve Rose Borenstein LLC and the Clark Nuber CPA firm have created an interactive master workbook by which tax-exempt organizations can create user-friendly individualized questionnaires for their Board members, Officers and “Key Employees” (and in certain cases, grant committee members or substantial contributors). The workbook includes a “help me decide” function to assist in determining whether an individual is to be reported upon Form 990 Part VII, and if so, with what status (Trustee, Director and Officer, Key Employee, “former”, etc.) The output—individualized-to-managers’-status excel workbooks—can be presented to each individual in electronic or paper format. The individualized workbooks (equivalent to personal “questionnaires”) incorporate all of the inquiries (and definitions) required in line with the “reasonable effort” example (for such questionnaires) that is provided in both the 2008 and 2009 Form 990 Instructions. Use of this tool allows organizations to rely upon the information returned by their Trustees/Directors, Officers and Key Employees (and others the Form may require) as the basis for completing five key arenas of the Form. Each master workbook (dubbed “Form 990 Board Questionnaire Template”) is available for a complete price of $250 (for organizations with “related organizations”) / $200 (for organizations who do not need factor in “related organizations” questions). The purchase price is a complete cost to each filing organization, regardless of the number of individualized questionnaires that are then to be generated. Multiple pricing is available for preparers or others who wish to buy in quantity to provide to their clientele. To order (or for further info), please visit Clark Nuber’s website: http://www.clarknuber.com/nfp/i-form990.php or contact .(JavaScript must be enabled to view this email address).
Courtesy of funding from The Otto Bremer Foundation, a short training for nonprofits on working with the 2009 Form 990 is in the works to accomodate both “lessons learned” and “new realities” of the “Redesigned” Form 990. A webinar will be available, as well as on-site trainings in both Minnesota and North Dakota locales fall/winter 2010. Stay tuned . . .
efile.form990.org is the website home for the Urban Institute’s project that allows exempts to both “e-file” and prepare their annual returns and extensions. Their very competent desktop Form 990 preparation software successfully morphed to accomodate the 2008 Redesigned 990 last summer, and the 2009 Form 990 software is being developed. The software includes comprehensive error checking, provides online instructions and tips, electronically files the return with the IRS. Access to the software/system is FREE for organizations with less than $100,000 in gross receipts but charges (for 2008 returns, up to $135) for larger organizations.
1—IRS Commissioner’s statement of May 18, 2010 signified that IRS was going to accept LATE filings, by calendar year organizations, of the 990-N. ON JULY 26, 2010, IRS released a notice – and YOUTUBE video – explaining that those who missed the May 17, 2010 [or any of the next four months] deadline(s) by failing to file (as appropriate) EITHER the Form 990-N (e-postcard) OR the Form 990-EZ for calendar 2009 have until October 15, 2010 to file these Forms. The link (to the video) and the notice in full are reprinted here:
Small Tax Exempt Org Revised Filing Deadline
IR-2010-87, July 26, 2010
WASHINGTON — Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program, the Internal Revenue Service announced today.
The IRS today posted on a special page of IRS.gov the names and last-known addresses of these at-risk organizations, along with guidance about how to come back into compliance. The organizations on the list have return due dates between May 17 and Oct. 15, 2010, but the IRS has no record that they filed the required returns for any of the past three years.
“We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption,” IRS Commissioner Doug Shulman said. “So if you do not have your filings up to date, now’s the time to take action and get back on track.”
Two types of relief are available for small exempt organizations – a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice (e-Postcard), and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.
Small organizations required to file Form 990-N simply need to go to the IRS website, supply the eight information items called for on the form, and electronically file it by Oct. 15. That will bring them back into compliance.
Under the VCP, tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by October 15 and pay a compliance fee. Details about the VCP are on the IRS website, along with frequently asked questions.
The relief announced today is not available to larger organizations required to file the Form 990 or to private foundations that file the Form 990-PF.
2—Self-described 501(c)(4)‘s (as well as other non-501(c)(3) exempt categories) can’t have it both ways—they can’t have taken the position that they are exempt BUT not file a 990-series return, including (as of the 2007-2009 years) 990-N’s if they are below the filing threshold for the 990-EZ or full 990. With the looming three year deadline hitting now, these groups are often not able to make a 990-N e-postcard filing for 2009 because the IRS doesn’t have them on the master file to begin with. As of the first week in May, the IRS has said it will take them 4-6 weeks to correct their systems to allow such a “self-described” group to call-in and have their information entered on the master file; in the meantime, groups in such posture DO NEED to call in (877-829-5500) and staff will take their 990-N information immediately and post it to the system when the master file has been corrected to cover groups in these circumstances.
A summary of IRS Form 990 Resources and Tools is presented and catalogued (and continually updated) upon the IRS’ website at IRS Form 990 Resources/Tools. A treasure for preparers and users of the Form exists in the “New Form 990 Getting Started” Introductory Materials, which revolve around a Form 990 case study using a hypothetical organization – Exempt Organization for Disaster Relief (“EODR”). Included in the materials are a set of facts describing organizational and financial aspects of EODR, and a completed Form 990 based on those facts; with those in hand you can, via seven short video “walk throughs” of EODR’s Form 990, be guided through easy-to-understand explanations of inputs in the Form’s Parts on issues key and common to most Form 990 filers (these address: Revenue and Expenses; Balance Sheet, Supplemental Financial Statements, and Schedule D; Program Services; Other IRS Filings and Tax Compliance; Compensation; Governance—and Schedule L; and Summary, Schedules, Signatures). Click here for the IRS website page setting out these materials.
Another resource to recommend (particularly for lay-people) are the materials providing a basic introduction to annual return filing responsibilities overall—these exist within six online mini-courses (available here), from the IRS’ “Stayexempt.org” training site (these are especially geard to 501(c)(3) organizations):
* Preparing to File the New Form 990: An overview of the changes to the form/tips on getting ready to file it.
* The Redesigned Form 990 - Part I: General instructions for completion & walk through of the financial parts.
* The Redesigned Form 990 - Part II: Walk through of accomplishments, compliance, & compensation parts.
* The Redesigned Form 990 - Part III: Walk through of the governance, management, disclosure, and summary parts; checklist of required schedules; and Schedule A.
* The Redesigned Form 990 - Part IV: Walk through of Schedules C, F, G, I, M, and R.
* An Overview of Form 990-EZ.
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