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We’ve made our way to Part IV of the IRS Form 990 which is the checklist of required schedules. If you answer “yes” to any of these questions, you will then be required to complete an additional schedule. We encourage everyone to print a copy of the 990’s instructions that can be downloaded right from the IRS’ website (www.irs.gov/charities). The instructions are long, but well organized and very helpful. The various schedules can also be printed.
IRS Form 990 – Page 3 – Part IV – Checklist of Required Schedules
Line 1 – Answer “yes” if you are a 501(c)(3) or 4947 (a)(1). You must complete Schedule A (Public Charity Status and Public Support).
Line 2 – Answer “yes” if required to complete Schedule B (Schedule of Contributors). This is required if you received charitable contributions of $5,000 or more from a single contributor and reported it as revenue. One of the biggest changes is that persons now include government contributors.
Line 3 – This answer should be “no”, regarding engaging in political campaign activities on behalf of a candidate.
Line 4 – Completed only by 501(c)(3)s. This answer could be “yes” if you engaged in significant lobbying activities in support of a cause (complete Schedule C), but is usually “no”.
Line 5 – Completed only be 501(c)(4)s, (5)s, and (6)s, if they receive memberships, dues or similar assessments.
Line 6 – This answer should be “no”, unless you are a community foundation type of organization (and would then complete Schedule D, Part I).
Line 7 – This answer is usually “no”, unless you received or hold a conservation easement (and would then complete Schedule D, Part II).
Line 8 – Answer “yes” only if you maintained any art collections, etc., during the year (and then complete Schedule D, Part III).
Line 9 – Answer “yes” if at any time during the tax year the organization had an escrow or custodial account that was not reported as an asset and liability in Part X, or provided credit counseling and/or debt management plan services (and then complete Schedule D, Part IV).
Line 10 – Answer “yes” if the organization or a related organization held assets in endowment funds at any time during the year (and then complete Schedule D, Part V).
Line 11 - Answer “yes” if the organization reported an amount for land, buildings, and equipment, investments-other securities, investments-program related, other assets, or other liabilities in Part X, lines 10, 12, 13, 15 and 25 (and then complete Schedule D, Part VI, VII, VIII, IX or X, as applicable).
Line 12 – Answer “yes” if the organization received an audited financial statement prepared in accordance with GAAP (and then complete Schedule D, Part XI, XII, and XIII). Do not answer “yes” if the organization was included in a consolidated audited financial statement unless the organization also received a separate audited financial statement.
Line 13 – Answer “yes” if the organization checked the box on line 2 of Schedule A, Part I, indicating that it is a school.
Lines 14-16 – Most organizations will answer “no” regarding activities outside the U.S.
Lines 17-19 – Professional fundraising or gaming – Must review applicable info on Parts VIII and IX, and if “yes” complete Schedule G.
Line 20 – Answer “yes” if the organization was licensed, registered or similarly recognized by a state as a hospital (and then complete Schedule H).
Line 21-22 – Grantmaking – Answer “yes” if the organization reported more than $5,000 on Part IX, either line 1or line 2 (and then complete Schedule I, Parts I, II, or III, as applicable).
Line 23 – Compensation information – Did the organization answer “yes” to questions 3, 4, or 5, Part VII, Section A? If “yes”, complete Schedule J.
Line 24a-d – Tax-exempt bonds – If your answer to 24a is “no”, skip to 25.
Line 25a-b – Excess benefit transactions – same as on old 990. If “yes”, complete Schedule L, Part I.
Lines 26-28 – Transactions with interested persons – The organization should carefully review the instructions to Schedule L, Parts II-IV, before answering these questions and completing Schedule L.
Line 29 – Non-cash contributions – Answer “yes” if the organization received more than $25,000 of contributions of property other than cash, regardless of the manner received (such as for use in a charity auction) and complete Schedule M.
Line 30 – Art, historical treasure and qualified conservation easements - If “yes”, complete Schedule M.
Lines 31-32 – Liquidations, terminations, and disposal of significant assets - If “yes”, complete Schedule N, Part I or II, as applicable.
Lines 33-35 – Related organizations and controlled entities - If “yes”, complete Schedule R, Part I, II, III IV or V, as applicable.
Line 36 – Transfer by charitable organization to exempt non-charitable – 501(c)(3)s and 4947(a)(1) trusts must answer “yes” or “no”, and proceed to Schedule R, Part V, line 2.
Line 37 – Answer “yes” if the organization conducted more than 5% of its activities through an unrelated partnership, and proceed to Schedule R, Part VI.
Next week we move on to Part V – Statements Regarding Other IRS Filings and Tax Compliance.
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