Complex Manager Comp Scenarios: Core Form VII-A & Schedule J WEBINAR

Wednesday, August 10 8:00am - 10:30am PDT

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2.5 Credits

Member Price $89.00

Non-Member Price $109.00

Overview

This session comprises one of Form 990’s most difficult arenas, Part VII-A and Schedule J’s Part II. In reporting the filer’s “Managers” by name and providing their compensation, identification of only some of those “Managers” - those with “current” status as Trustees-Directors and/or Officers - is likely to be relatively easy. Way more complexity comes to bear when ascertaining potential Key Employees and qualifying them for such status, and also in finding and proving a filer’s “formers.” Such tasks are typically formidable in the presence of RELATED ORGANIZATIONS and/or when THIRD PARTY PAYORS for such individuals’ services are or have been involved. In those scenarios, accessing a managers’ “reportable compensation” and “other compensation” may be difficult to obtain; and applying the three relevant exceptions to compensation disclosure can be torture. If all of that seems exhausting, take heart! The author/presenter here shares her experience and practical tips via extensive materials and comprehensive explanation of ALL relevant definitions, exceptions, and reporting demands made via Part VII-A and Schedule J’s Part II.

Highlights

Exploration of the challenges in determining a filer’s: current Key Employees versus Officers; and those who need be disclosed as “formers” - individuals with “current” status in prior years but NOT in the current year, who then are to be tested for either “former” Officer/Key Employee/High 5 status or “former” Trustee/Director status. Why and how all of this matters (including the additional compensation detailing that is required on Schedule J’s Part II when a manager’s circumstances “trigger” that schedule’s application). Handling the recalcitrant Trustee-Director who claims limited involvement with the filer’s governance and Officers and other managers who may refuse to return questionnaires. Further exploration of key compensation reporting challenges: Required “dial back” to the calendar year for organizations with a year other than 12/31; 990-instructions-defined “deferred comp” overall and via examples; Compensation disclosures (and reporting exceptions) in BOTH cases of related organization’s pay and when compensation is paid by an UNrelated organization to an individual who is serving the filer; and comparison of 990 reporting of compensation with IRC section 4960’s “remuneration”-based excise tax. Complex third-party payor reporting situations: procuring services of an individual from a management company or employee-leasing organization; common paymaster reporting scenarios; and when an individual’s services to the filer are paid by an Unrelated organization.

Prerequisites

Experience with Form 990.

Designed For

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

Objectives

Understand the inquiries and reasonable efforts necessary to fully report compensation provided by the filer and all other relevant parties to current and former Trustees/Directors, Officer, Key Employees, and High 5’s and note how same diverges from IRC section 4960. Know the basics of Part VII-A (and companion Sch J-II) compensation reporting when the filer is a common paymaster or its employees are paid by one. Be able to discern what compensation is required to reported as paid by the filer when an unrelated organization is paying some or all of the remuneration received by an individual for their service as the filer’s Trustee-Director, Officer or employee.

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 $109.00

Member Price $89.00