Notable IRS Regulations on UBTI

In addition to finalizing the rule of using NAIC codes for making the determination as to whether an organization has more than one separate unrelated business activity for Form 990-T reporting purposes, which you can read all about here, the IRS Final Regulations (which adds section 512(a)(6) to the Internal Revenue Code) also includes other …

Keep Reading

New rules for taxable income

Tax exempt organizations may not be 100% tax exempt. Organizations may get involved in certain income-producing activities that could be subject to tax (unrelated business taxable income or UBTI). Under the Tax Cuts and Jobs Act, the IRS began requiring tax exempt organizations to report the income and expenses from each unrelated business activity separately …

Keep Reading

Which 990 form is right for your organization?

All the time and research needed to gather records, compile information, and fill out forms necessary to complete a Form 990 can be extensive. Understanding the proper form to use for your organization could be one less thing to worry about and possibly be a time saver. So here is a short guide that can …

Keep Reading

Is my organization required to complete form 990 schedule B?

The Form 990 Schedule B, also known as Schedule of Contributors, is one of the more common schedules required for non-profits that receive contributions throughout the year. The name may give it all away, but it is a schedule that requires reporting of contributors who have donated amounts over certain threshold requirements depending on the …

Keep Reading

What to know about 457 plans

Taxes relating to 457 plans can be confusing for tax exempt entities. Here are some key points to know: 457b and 457f plans are deferred compensation retirement plans that are offered to a select group of higher compensated or key management employees in a tax exempt entity. Both employees and employers can make contributions to …

Keep Reading

FinCen Form 114: Does your organization need to file?

Is your nonprofit involved in activities in foreign countries? This includes operating an orphanage, conferences, mission work or any other type of program activity. If so, your organization may find it necessary to open a bank account in that country. Once you decide to do that, Form 114 may be required for you to file …

Keep Reading

Changes to the Form 990 extension process

The due date for exempt organizations to file their Form 990 returns is the 15th day of the 5th month after the organization’s year-end. With the May 15th due date for organizations having a calendar year-end this week, you may have filed for an extension. If you did, you may have noticed that the 990 …

Keep Reading

Form 1023-EZ now available electronically

It is official! The Internal Revenue Service (“IRS”) just announced that Form 1023-EZ, Streamlined Application for Recognition of Exemption, is now available online for the public to see for the first time. “The new online availability of Form 1023-EZ data is an important step forward and will allow taxpayers to more easily research information on …

Keep Reading

Who Will the IRS Choose for Form 990 Audits?

The Exempt Organizations Division of the IRS has recently made a change in how they select nonprofit organizations for audits of the Form 990. Previously, audit selections were made based on specific types of organizations. For example, after the IRS conducted a study of nonprofit hospitals, those organizations were audited in higher numbers than other …

Keep Reading

What Your Schedule A Says About You

Does your organization check all the right boxes? For Schedule A, that is. Schedule A is a crucial piece of the 990 for nonprofits as it calculates whether they truly qualify as a publicly supported organization or not. Generally, to be considered a publicly supported organization, the nonprofit must have support of at least 33 …

Keep Reading