This session focuses first (and primarily) on Part V, providing explanation of each inquiry from two perspectives - the line’s underlying compliance requirement, and the business need ramifications they generate. Part V invokes multiple compliance points set out in federal tax law (such as payroll tax obligations, and donors’ ability to access charitable contributions deductibility) that are not elsewhere addressed in the 990’s Core Form or Schedules. The author/instructor addresses issues and nuances not covered in the instructions and provides preparation tips. Part I’s preparation needs start with avoiding calculation confusion when completing the Summary Financials totals at lines 8-22. These lines’ abbreviated categories and oddball capture of “fundraising expenses” from competing Core Form parts are covered, along with tips on addressing questions readers may have in exploring this part.
Addressing Part V’s additional tax compliance points for 990 filers (i.e., statutory requirements outside of those that relate to maintaining tax-exemption-qualification). Substantive background on the underlying line-specific tax needs covered in four key lines: 1) Use of a common paymaster (and its impact on) “number of employees” [and ramifications on mandated e-filing applicable to larger organizations] (Line 2) 2) When a Form 990-T filing is (and is not) required (Line 3a) 3) The quid pro quo solicitation disclosure mandates (Line 7a/7b) 4) Need to communicate when soliciting donors if the organization is not eligible to receive tax-deductible contributions (Line 6a/6b). Existence of other, and often overlapping, disclosures and/or filings required when a filer captures specific amounts of tax-deductible charitable contributions, including, in certain circumstances, donations of property. Explanation of the basics behind the excise tax schemes applied to filers who either: hold “donor-advised funds” (Lines 8 and 9); or are potentially reached by IRC section 4960’s executive compensation tax (Line 15). Potholes in culling the current and prior year’s tax return information necessary to complete Part I’s Lines 8-22.
Public accounting tax and audit staff, and nonprofit organization’s Treasurers, CFOs and other finance/compliance advisors.
Identify the “gotcha” questions in Part V: (1) regarding payroll tax reporting (including back-up withholding), (2) need to file unrelated business income tax returns, and (3)disclosures related when soliciting and/or receiving certain contributions. Apply overview background information to be able to inform filers of their basic business needs that arise outside of IRS enforcement of Form 990 filing obligation. Assist filers in appreciating both e-filing mandates and common misunderstandings of what conditions yield a true “common paymaster”. Identify where filers should be apprised of need for additional tax advice.
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 $84.00
Member Price $64.00