The Form 990’s approach to reporting financial statements initially seems easy as it follows the filer’s books with only a modest amount of “990 instructions”-required changes. Unfortunately, the instructions include multiple conventions the IRS imposes that replace GAAP treatment that many filers would otherwise follow! Preparers need be able to recognize and apply the 990’s non-recognition of both the donation of services or discounts on accessing others’ properties and mark-to-market valuation of invested assets. Furthermore, many of the 990’s revenue categories are unique to sector-practices and/or have 990-specific reporting needs. The materials and the author/instructor readily inform preparers as to how the maze of 990 reporting pieces that must be mastered prior to working on the form’s three major financial statement parts.
Statement of Revenue (Part VIII) key definitions: the six rules behind Line 1 (gifts, grants, contribution) and the definitions that drive Line 2 (program service revenue), including characterization of passive investment-type revenues as “program-related investments” . Unique status issues that require inputting of revenues upon Part VIII’s Lines 8-10 (the fundraising events or sales, gaming, and sales of inventory lines) . Understanding the unrelated business income tax (UBIT) “self-audit” reporting applied via Part VIII’s columns including the baseline definitions that are used to identify revenue streams as either exempt function income, sourced-to-UBI, or UBIT-excepted. Statement of Functional Expenses (Part IX): understanding the natural classifications of costs employed upon the form, and exploration of the relevant definitions as well as common mistakes that result from ignorance of this part’s instructions. Balance sheet (Part X) issues overall including handling the reconciliation of P&L yearend assets in Part IX and noting form deficiencies in flagging the possible application of Schedule L.
None, although helpful to have some knowledge of how the Form 990 is structured.
Public accounting tax and audit staff, nonprofit organization’s Treasurers, CFOs, and other finance/compliance advisors.
Command the common “book versus 990” differences that are key to reporting revenues, expenses, and changes in net assets reporting on Parts VIII-X. Distinguish the variety of inputs from a filer’s book financial statements that require adjustment to 990 conventions. Appreciate the hierarchy of revenue reporting Part VIII applies . Identify where additional information may be necessary in order to meet disclosure mandates for certain reconciling items enumerated on Part XI. Recognize the 990’s separate Schedules that may be required as a result of entries or conditions reported on Parts VIII - X.
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