Finding & Reporting 990 Filers' Related Organizations WEBINAR

Monday, June 6 7:00am - 9:00am PDT

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2.0 Credits

Member Price $79.00

Non-Member Price $99.00

Overview

Mastery of the Form 990 requires ability to identify the filer’s “related organizations” (indeed, doing so is THE FIRST preparation step called for in the 990 instructions!) This “990-term-of-art” employs four commonly found categories: the first three utilize a 990-specific definition of “control” as the basis for determining related organizations due to “parent,” “subsidiary,” or “sibling” status; and a fourth applies when a supporting organization is in the mix (VEBA’s face a unique rule which is easy to master and also noted). This session fully illuminates, with real-world explanations, the full panoply of nuances that preparers confront in working with those four categories. Participants will find multiple take-away tools and tips to master the underlying definitional precepts of direct and indirect “control” the 990 imposes. Thereafter, the materials and author/instructor turn to an overview of the preparation points for Parts II-V of the Schedule R.

Highlights

The reach of “parent-subsidiary” and “sibling” status when the party who is the subject of “control” is a nonprofit/nonstock entity [note this applies both to ascertaining whether the filer is “controlled by” a related organization OR itself “controls” another nonstock entity]. Understanding what is considered “control” when a potential related organization is: a stock corporation; a partnership or an LLC taxed as a partnership; or a trust. The challenges of both finding “directly-controlled” related organizations versus imputing related organization status through “indirect control” . The two automatic status categories of related organizations: supporting organization connections (one entity being a 501(c)(3) with 509(a)(3) sub-classification from connection to another entity) and VEBA-unique categories . Overview information sought on Schedule R’s Parts II-IV once the presence of one or more related organizations is ascertained. Schedule R Part V disclosure demands when a related organization is a “controlled entity” under, and thus subject to, Code section 512(b)(13)’s UBIT-reach. Overview of the Schedule R Part V disclosure requirements for 501(c)(3) filers who have a related organization itself recognized as tax-exempt under 501(c)(x) other than 501(c)(3).

Prerequisites

None.

Designed For

Public accounting tax and audit staff, and nonprofit organization’s Treasurers, CFOs and other finance/compliance advisors.

Objectives

Identify the principles by which control vests in determining parent (of subsidiary), subsidiary (of parent), or sibling status between the filer and another not-for-profit. Identify how control vests over an entity that is a stock corporation. Appreciate the principles that yield “commonly controlled” related organizations (i.e., siblings). Understand what baseline information is required when reporting existence of related organizations in Schedule R’s Parts: II (tax-exempt entities); Part IV (corporations or trusts); and Part III (partnerships). Recognize the info disclosure sought in Schedule R’s Part V with respect to TYPES of transactions with related organizations and when specific dollar disclosure is required.

Preparation

None.

Notice

None.

Leader(s):

Leader Bios

Eve Borenstein

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!”

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Non-Member Price $99.00

Member Price $79.00