990 handbook : a line-by-line approach / Jody Blazek.

Format:

Book

Author/Creator:

Blazek, Jody.

Series:

Wiley nonprofit law, finance, and management series

Language:

English

Subjects (All):

Nonprofit organizations--Taxation--United States--Handbooks, manuals, etc.

Nonprofit organizations.

Nonprofit organizations--Taxation.

United States.

Tax exemption--United States--Handbooks, manuals, etc.

Tax exemption.

Nonprofit organizations--Taxation--Law and legislation--United States--Handbooks, manuals, etc.

Nonprofit organizations--Taxation--Law and legislation.

Genre:

Handbooks and manuals.

Physical Description:

xiv, 226 pages : forms ; 26 cm.

Other Title:

Nine ninety handbook

Nine hundred ninety handbook

Place of Publication:

New York : Wiley, [2001]

Summary:

Hands-on guidance to help nonprofits through the tax filing maze

Forms 990 provide a wealth of financial and programmatic information to enable government regulators, funders, journalists, and the interested public to measure a nonprofit's performance. A copy of the forms must be provided to anyone who asks; charities'forms are now posted for public view on the Internet courtesy of Guidestar.org. These forms are the most widely used tools for evaluating tax-exempt organizations. Schools, health and welfare organizations, business leagues, civic associations, museums, parent groups, garden clubs, private foundations, and the myriad of other nonprofit organizations recognized under section 501 of the federal tax code must file this form annually. Clear, correct, and concise preparation of Forms 990-EZ, 990, 990-PF, and 990-T is important, not only as financial documents, but also as a means of communicating an organization's mission and accomplishment to the public.

Demystifying the Forms 990 for financial professionals and nonprofessionals alike, this user-friendly handbook walks you through the federal tax compliance process to assure maintenance of tax-exempt status. Blazek is widely recognized for her ability to translate complicated concepts into understandable language and explain the why and how Forms 990 should be prepared. In this book, readers will find: Comprehensive, fill-in forms with line-by-line instructions including a synopsis of applicable tax issues Explanation of consequences of answers that can have several consequences Suggestions for dealing with the IRS as an organization grows and changes Ways to maximize deductions in calculating tax dueon unrelated business income Tips for successful navigation of the interactive parts of Form 990-PF and reducing excise tax

Contents:

Chapter 1 Tools, Concepts, Filing, and Reporting Requirements 1

1.1 Find Out Why the Nonprofit Qualifies for Tax Exemption 4

1.2 Filing Forms 990 5

1.3 Public Inspection of Forms 990 and 1023 or 1024 11

1.4 Accounting Issues 13

Appendix 1A Form 8868 22

Chapter 2 Successful Preparation of Form 990s and 990-EZ 25

2.1 Form 990-EZ

Short Form 25

2.2 Form 990, Part I

Income and Expense 27

2.3 Part II

Statement of Functional Expenses 38

2.4 Part III

Statement of Program Service Accomplishments 45

2.5 Part IV

Balance Sheet and Reconciliation 46

2.6 Part V

List of Officers, Directors, and Trustees 47

2.7 Parts VI and IX

Other Information 51

2.8 Part VII

Analysis of Income-Producing Activity 54

2.9 Reporting by Political Organizations 61

Appendix 2A Form 990-EZ 65

Appendix 2B Form 990 67

Appendix 2C Schedule B 76

Appendix 2D UBI Codes 79

Appendix 2E Exclusion Codes 80

Appendix 2F Form 8871 81

Appendix 2G Form 8872 83

Chapter 3 Form 990, Schedule A: For [section]501(c)(3) Organizations 85

3.1 Parts I and II

Compensation 86

3.2 Part III

Statement About Activities 87

3.3 Part IV

Reason for Non-Private Foundation Status: [section]509(a)(1) 88

3.4 Part IV

Service-Providing Public Charities: [section]509(a)(2) 95

3.5 Part IV

Supporting Organizations: [section]509(a)(3) 96

3.6 Differences between [section]509(a)(1) and [section]509(a)(2) 97

3.7 Solving Troublesome Public Status Problems 100

3.8 Part V

Private School Questionnaire 102

3.9 Part VI-A

Lobbying Expenditures by Electing Public Charities

and Part VI-B

Lobbying Activity by Nonelecting Public Charities 103

3.10 Part VII

Information Regarding Transfers, Transactions, and Relationships with Other Organizations 105

Appendix 3A Schedule A 106

Appendix 3B Form 5768 114

Chapter 4 The Private Foundation Return 115

4.1 Successful Completion of Form 990-PF 115

4.2 The Part I Columns 118

4.3 Line-by-Line Instructions for Revenues 120

4.4 Line-by-Line Instructions for Expenditures 125

4.5 Part II

Balance Sheets 129

4.6 Part III

Analysis of Changes in Net Worth or Fund Balances 130

4.7 Part IV

Capital Gains and Losses for Tax on Investment Income 131

4.8 Reports Unique to Private Foundations 132

4.9 Part V

Reducing the Tax Rate 132

4.10 Part VI

Calculating the Excise Tax 132

4.11 Part VII-A

Proof of Ongoing Qualification for Exemption 133

4.12 Questions Seeking Evidence That No Sanctions Apply 137

4.13 Part VIII

Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors 138

4.14 Part IX-A and B

Summary of Charitable Activities and Program-Related Investments 138

4.15 Part X

Minimum Investment Return 139

4.16 Part XI

Distributable Amount 139

4.17 Part XII

Qualifying Distributions 140

4.18 Part XIII

Undistributed Income 140

4.19 Part XIV

Private Operating Foundations 141

4.20 Part XV

Supplementary Information 141

4.21 Part XV

Grants and Contributions Paid During the Year or Approved for Future Payment 142

4.22 Part XVI-A

Analysis of Income-Producing Activity 143

4.23 Part XVII

Information Regarding Transfers to and Transactions and Relationships with Noncharitable Exempt Organizations 143

Appendix 4A Form 990-PF 145

Appendix 4B Form 4720 158

Chapter 5 Form 990-T: Exempt Organization Business Income Tax Return 167

5.1 What Is Unrelated Business Income? 168

5.2 Exceptions and Modifications from Tax 171

5.3 Unrelated Debt-Financed Income 175

5.4 Who Files Form 990-T? 178

5.5 Due Dates, Tax Rates, and Other Filing Issues 179

5.6 Normal Tax Income Rules Apply 182

5.7 The Unique Design of the 990-T 185

5.8 Categories of Deductions 186

5.9 Cost Allocations 190

5.10 In-Kind Donations 192

Appendix 5A Form 990-T 193

Chapter 6 Successful IRS Communication 199

6.1 Understanding the IRS Exempt Organization Division 200

6.2 Reporting Organizational/Program Changes to the IRS 202

6.3 Changing Fiscal Year 204

6.4 Changing Accounting Method 205

6.5 When to Amend a Form 990 207

6.6 Changing Public Charity Class 207

6.7 When the IRS Examines 210.

Notes:

Includes bibliographical references and index.

ISBN:

0471417815

OCLC:

46946969