Business & Financial Solutions is a tax accounting firm. And we provide a wide range of services to individuals, businesses, and nonprofit organizations. Our goal is to assist clients in their successes. We offer the services and tools you need for that success. Inclusively, we prepare the Form 990 Income Tax Return for exempt Organizations. And our tax preparers are experienced and efficient. Moreover, we can prepare form 990 for tax-exempt organizations, regardless of the type of organization.
Most exempt organizations well generate income one way or another. And some will have gross receipts of at least $200,000 or assets worth at least $500,000. Consequently, they will need to file form 990. In fact, form 990 is a requirement for any organization that generates that amount or more.
However, some organizations, such as political, churches, and other religious organizations, are exempt from filing an annual Form 990. Except for those exempt from filing, we recommend every organization file the form. But we don’t make the recommendation lightly. And we make the recommendation, despite the fact that they are not required. There is a perfectly good reason for the recommendation.
Non-profit, actively seeking funding through grants, will be required to provide copies of recent 990 tax returns. And the funder will want to see this return as part of the review process for the grant. Providing copies of these tax returns greatly improves the possibility of regardless of the gross receipts or assets requirement.
Form 990 initially requires the organization to describe its mission or other significant activities. Therefore, the organization must disclose financial details on its revenues, expenses, assets, and liabilities. Also, the IRS wants to ensure that the organization is worthy of maintaining its tax-exempt status. And the agency requires more details on the types of activities it engages in during the year.
A significant portion of the form requires information on the organization’s is governance. And specific requests are made. For example, you are required to give the names of your officers, directors, and highly compensated employees. And the form raises questions about other employees who are involved with managing the organization. Strangely enough, a nonprofit organization that over-compensates its management may jeopardize its tax-exempt status with the IRS.
Further, the Internal Revenue Service scrutinizes non-profit organizations. Because they assure the community that the organization is not being used as a shell for illicit activities. And the agency provides oversight to make sure the non-profit is not used for personal gain. Consequently, the information required in this filing provides vital information on the activities, intentions, and worthiness of 501(c) (3) operations. And preparation of form 990 requires careful record-keeping, organization, and documentation. And our accounting firm can help with every aspect of this workload.