Form 99 Schedule L’s Parts II-IV require transparency of insider transactions conducted by an exempt organization. Disclosure here is necessary regardless of whether the transaction or event disclosed is routine or necessary to the organization’s business needs. Reporting conveys no value judgment, but omitting the fact of Parts II-IV events - loans with parties who are “Interested Persons” per 990 definitions is dangerous, especially if the omission signals that management may have failed to protect the organization’s interests.. This session builds upon the basics of “who” falls within Interested Person status via the five harmonized categories applying across Parts II-IV.
Review of the “harmonized” five categories by which “Interested Person” (IP) status vests and explanation of the additional categories in play for Parts II and IV. Tips for accessing appropriate documentation from Trustees-Directors, Officers and Key Employees as to presence of reportable events with them. Handling Part IV’s “business transactions” reportable thresholds and working with the possible exceptions from “business transaction” characterization. Addressing IP’s privacy concerns and/or requests to omit individuals or company names when reporting business transactions on Part IV. Reporting demands of Part II, including aspects of managing loans with IPs in favor of public relations needs raised by this part. Reporting demands of Part III, including: drill-down into the two key exceptions to Part III’s reporting of grants or assistance to an IP. Addressing of educational institutions’ exception from requirement to disclose names of scholarship recipients and how this connects to governance reporting in Core Form 990’s Part VI.
Experience with Form 990 Schedule L.
Public accounting tax and audit staff, nonprofit organization treasurers, CFOs, and other finance advisors.
Recall the five categories of IPs applying uniformly across Parts II-IV of the Schedule, as well as the joint venture category that also applies to Part IV. Retain the disparate Part IV business transaction dollar thresholds . Identify the chief exception to reporting of grants and assistance provided to interested persons in Part III. Address how to make “best foot forward” narratives in Schedule L’s blank lines (Part V). How to override public relations concerns stemming from reporting insider transactions in Parts II-IV.
Eve Borenstein is a partner in Borenstein and McVeigh Law Office (BAM!), a Minnesota law firm that is the base of Eve’s national tax practice and services nonprofits and tax-exempt organizations exclusively.
Separate from the law firm, Eve operates a teaching and speaking consultancy offering instruction on nonprofit and exempt organization mandates, Eve Rose Borenstein, LLC.
Eve received her law degree from the University of Minnesota in 1985 and thereafter embarked on exempt organizations tax work at a “Big 8” accounting firm. From 1989-2003 she maintained a solo practice serving tax-exempt non-profit corporations, and in 2004 created the BAM Law firm with nonprofit corporate counsel Ellen W. McVeigh. From her law firm’s practice and through her teaching and speaking, Eve works to assist diverse nonprofit organizations with tax-exemption qualification, corporate planning and compliance. The bulk of her legal practice is representing exempt organizations before the Internal Revenue Service and/or State regulators on audit, qualification and classification issues; through 2009 she had represented more than 850 organizations before the IRS.
Eve volunteers extensively with multiple professional committees, including the American Bar Association’s Tax Section Committee on Exempt Organizations, from which she serves as a liaison to the American Institute of Certified Public Accountants’ Exempt Organization Technical Resource Panel. Through such service, and individually, Eve was integrally involved in the IRS’ Redesign of the Form 990. She was chosen by the IRS to be one of two private practitioners on the IRS Tax Talk Today TV broadcast in November 2008 dedicated to the Redesign of the Form 990, and has appeared multiple times since with IRS officials on educational panels concerning that Form.
Eve was also one of the original non-IRS collaborators in the Form 1023 Revision Project that culminated in that Form’s October 2004 “make over”. She enjoys teaching and speaking and is committed to “helping the sector (and its advisors) do it right the first time!”
Non-Member Price $109.00
Member Price $89.00