Preparing the Complicated Form 990

1. Introduction
2. Speaker - Tracy Paglia
3. Agenda 00:01:1:13
4. Which Form? 00:04:41
5. Schedules For Form 990-EZ 00:11:32
6. Additional Schedules For 990 00:13:21
7. Logistics 00:17:10
8. Core Form 990 00:22:25
9. Core Form 990 Part I and III 00:22:26
10. Core Form 990 Part IV 00:27:20
11. Core Form 990 Part V 00:31:57
12. Core Form 990 Part VI - Governance, Management & Disclosure Section A, B and C 00:33:37
13. Schedule R: Related Organizations 00:40:47
14. Schedule R 00:42:55
15. Form 990, Part VII & Schedule J: Compensation 00:45:42
16. Schedule J 00:52:08
17. Core Form 990 - Part VIII - Revenue 00:56:25
18. Schedule A Part 1- Part IV 01:00:19
19. Schedule B, M, & G 1008:08:
20. Core Form 990 Park IX 01:11:42
21. Core Form 990 Park IX Continued 01:13:22
22. Schedules F & I 01:14:39
23. Schedule C 01:16:25
24. Core Form 990 Part X 01:18:02
25. Schedule L: Interested Persons 01:20:24
26. Remaining Schedules 01:22:51
27. Common Pitfalls 01:24:00
28. Top Footfaults 1-3 01:24:07
29. Top Footfaults 4-5 01:24:47
30. Top Footfaults 6-7 01:25:46
31. Top Footfaults 8 01:27:23
32. Top Footfaults 9-10 01:27:30
33. Top Footfaults 11 01:28:05
34. Introduction To UBI 01:31:29
35. Trade Or Business 01:31:32
36. Trader Or Business Continued 01:32:33
37. Regularly Carried On 01:33:47
38. Unrelated To Exempt Purpose 01:35:02
39. Trade or Business Chart 01:35:34
40. General Exclusions 01:35:39
41. Logistics 01:36:33
42. Tools 01:39:02
43. Sequencing List 01:39:03
44. Form 990 Resources 01:39:09
45. Q&A 01:39:59
46. Presentation Closure 01:41:30

• 501(c)(3) 00:10:47
• 509(a)(a) 00:05:11, 00:42:39
• Asset 01:23:29
• Audit 00:13:40, 01:11:49, 01:18:56
• Balance Sheet (BS) 00:13:34, 01:18:07
• Disregarded Entity 00:42:59
• Donor-Advised Fund  00:28:42, 00:33:22, 01:22:56
• Endowment Fund 00:13:39, 00:14:42, 01:23:13
• Exempt 00:07:04, 00:15:40
• Expense 00:13:43, 00:26:07, 00:12:05
• Financial Statement 00:29:47, 01:11:50, 01:19:17
• Foreign Bank and Financial Accounts (FBAR) 00:32:16
• Form 8282 00:32:40
• Form 990 00:01:36, 00:10:02, 00:11:52, 00:16:15, 00:21:06, 00:45:45, 00:58:16, 01:09:30
• Form 990-EZ 00:05:12, 00:09:43, 00:11:46, 00:16:13, 00:20:19
• Form 990-N 00:05:11, 00:07:09, 00:16:16
• Form 990-PF 00:10:45, 00:16:52
• Form 990-T 00:03:09, 00:10:55, 00:18:53, 00:21:10, 00:32:21, 01:24:34, 01:36:36
• Form W-2 00:32:09
• Hobby Loss 01:32:33
• Independent Contractor 00:32:12
• Net Operating Losses (NOL) 01:32:33
• Present Value (PV) 00:57:29, 01:08:51
• Real Property 01:35:47
• Reasonable Cause 00:18:26
• Revenue 00:13:42, 00:26:25, 00:56:33, 01:04:54
• Schedule A 00:11:57, 00:56:58, 00:59:01, 01:00:22
• Schedule B 00:12:15, 00:57:06, 01:08:13
• Schedule C 00:12:24, 01:16:27
• Schedule D 00:13:28, 00:29:43, 01:18:49, 01:22:55
• Schedule E 00:12:28, 01:23:29
• Schedule F 00:13:56, 01:14:43
• Schedule G 00:12:30, 01:08:13
• Schedule H 00:14:27, 01:23:38
• Schedule I 00:14:56, 01:14:43
• Schedule J 00:15:04, 00:45:52, 00:52:08
• Schedule K 00:15:25, 01:23:43
• Schedule L 00:12:37, 01:20:24
• Schedule M 00:16:00, 01:08:13
• Schedule N 00:12:41, 01:23:52
• Schedule O 00:13:09, 00:27:13, 01:23:58
• Schedule R 00:16:05, 00:31:34, 00:1:10
• Transaction 00:28:06, 01:22:04, 01:24:55
• Unrelated Business Income (UBI) 00:03:29, 00:10:14, 00:11:08, 00:26:36, 00:44:26, 01:24:15, 01:31:31
• Vendor 00:32:10

501(c)(3): A 501(c)(3) organization is a corporation, trust, unincorporated association, or other type of organization that is exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is the most common type of the 29 types of 501(c) nonprofit organizations in the United States. (en.wikipedia.com)

509(a)(a): Primarily includes churches, schools, hospitals, and other organizations that receive their public support primarily from gifts, grants and contributions from a broad group of people.

Asset: Property owned by a person or company, regarded as having value and available to meet debts, commitments or legacies.

Audit: A formal examination of an organization's or individual's accounts or financial situation

Balance Sheet (BS): A financial report that summarizes a company's assets (what it owns), liabilities (what it owes) and owner or shareholder equity at a given time.

Disregarded Entity: A disregarded entity refers to a business entity with one owner that is not recognized for tax purposes as an entity separate from its owner. A single-member LLC ( “SMLLC”), for example, is considered to be a disregarded entity. (www.pntax.com)

Donor-Advised Fund: A donor-advised fund is a charitable giving vehicle administered by a public charity created to manage charitable donations on behalf of organizations, families, or individuals.

Endowment Fund: An endowment fund, quite simply, is money set aside (invested) to earn revenue to fund some type of charitable activity. Unlike a typical investment fund, the beneficiary of an endowment fund is a nonprofit organization instead of individual investors.

Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage

Expense: Offset (an item of expenditure) as an expense against taxable income.

Financial Statement: Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. ... A balance sheet or statement of financial position, reports on a company's assets, liabilities, and owners equity at a given point in time.

Foreign Bank and Financial Accounts (FBAR): FBAR refers to Form 114, Report of Foreign Bank and Financial Accounts, that must be filed with the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the Treasury Department. ... The FBAR Form 114 is filed separately and directly with FinCEN

Form 8282: Charitable organizations use IRS Form 8282 to report the sale, exchange, consumption or disposal of property for charitable purposes.

Form 990 : Form 990 (officially, the "Return of Organization Exempt From Income Tax") is a United States Internal Revenue Service form that provides the public with financial information about a nonprofit organization. It is often the only source of such information.

Form 990-EZ: The 990-EZ is considered the short-form return (as compared to the full Form 990), although it is more in-depth than the 990-N postcard. This four-page return is required of organizations with annual gross receipts between $50,000 and $200,000.

Form 990-N: Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ, is used by small, tax-exempt organizations for annual reporting and can only be submitted electronically.

Form 990-PF: The 990-PF is the information return U.S. private foundations file with the Internal Revenue Service. This public document provides fiscal data for the foundation, names of trustees and officers, application information, and a complete grants list.

Form 990-T: Exempt organizations use Form 990-T to report unrelated business income. An exempt organization that has $1,000 or more gross income from an unrelated business must file Form 990-T, Exempt Organization Business Income Tax Return. The obligation to file Form 990-T is in addition to the obligation to file the annual information return.

Form W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)

Hobby Loss: Hobby loss is the term associated with funds spent to pursue a recreational activity that is not recouped. These expenses, when paid in connection with a hobby, are deductible only to the extent of income earned by the hobby or recreational activity. A loss is not allowed for expenses in excess of hobby income.

Independent Contractor: An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. - Investopedia (https://www.investopedia.com/)

Net Operating Losses (NOL): Generally, an NOL arising in a tax year beginning in 2021 or later may not be carried back and instead must be carried forward indefinitely. However, farming losses arising in tax years beginning in 2021 or later may be carried back two years and carried forward indefinitely. If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). An NOL year is the year in which an NOL occurs. You can use an NOL by deducting it from your income in another year or years.

Present Value (PV): The current value of a future sum of money based on a specific rate of return. Present value helps us understand how receiving $100 now is worth more than receiving $100 a year from now, as money in hand now has the ability to be invested at a higher rate of return. See an example of the time value of money here.

Real Property: Real property is land and any property attached directly to it, including any subset of land that has been improved through legal human actions. Examples of real properties can include buildings, ponds, canals, roads, and machinery, among other things

Reasonable Cause : Reasonable cause is based on all the facts and circumstances in your situation. The IRS will consider any reason which establishes that you used all ordinary business care and prudence to meet your federal tax obligations but were nevertheless unable to do so.

Revenue: In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees.

Schedule A: Schedule A (Form 990) is used by an organization that files Form 990, Return of Organization Exempt From Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, to provide the required information about public charity status and public support.

Schedule B: The IRS uses Schedule B to determine if you've deposited your federal employment tax liabilities on time. If you're a semiweekly schedule depositor and you don't properly complete and file your Schedule B with Form 941, the IRS may propose an “averaged” FTD penalty

Schedule C: Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if: Your primary purpose for engaging in the activity is for income or profit.

Schedule D: Use Schedule D (Form 1040) to report the following: The sale or exchange of a capital asset not reported on another form or schedule. Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit.

Schedule E: Schedule E is used to report income and losses from rental property, and income from trusts, estates, partnerships, and S-corporations. If you're receiving income from any of the pass-through activities, you should receive a Schedule K-1 from the entity.

Schedule F : Schedule F (Form 990) is used by an organization that files Form 990, Return of Organization Exempt From Income Tax, to provide information on its activities conducted outside the United States by the organization at any time during the tax year.

Schedule G: Schedule G (Form 990) is used by an organization that files Form 990 or Form 990-EZ to report professional fundraising services, fundraising events, and gaming.

Schedule H : Hospital organizations use Schedule H (Form 990) to provide information on the activities and policies of, and community benefit provided by, its hospital facilities and other non-hospital health care facilities that it operated during the tax year.

Schedule I : Schedule I (Form 990) is used by an organization that files Form 990 to provide information on grants and other assistance made by the filing organization during the tax year to domestic organizations, domestic governments, and domestic individuals. Report activities conducted by the organization directly.

Schedule J : Schedule J (Form 990) is used by an organization that files Form 990 to report compensation information for certain officers, directors, individual trustees, key employees, and highest compensated employees, and information on certain compensation practices of the organization.

Schedule K: Schedule K (Form 990) is used by an organization that files Form 990 to provide certain information on its outstanding liabilities associated with tax-exempt bond issues.

Schedule L: Schedule L (Form 990) is used by an organization that files Form 990 or 990-EZ to provide information on certain financial transactions or arrangements between the organization and a disqualified person(s) under section 4958 or other interested persons.

Schedule M: Schedule M (Form 990) is used by an organization that files Form 990 to report the types of noncash contributions received during the year by the organization and certain information regarding such contributions.

Schedule N: Schedule N (Form 990) is used by an organization that files Form 990 or Form 990-EZ to report going out of existence or disposing of more than 25% of its net assets through sale, exchange, or other disposition.

Schedule O: An organization should use Schedule O (Form 990), rather than separate attachments, to provide the IRS with narrative information required for responses to specific questions on Form 990 or 990-EZ, and to explain the organization's operations or responses to various questions.

Schedule R: Part I of Schedule R (Form 990) requires identifying information on any organizations that are treated for federal tax purposes as disregarded entities of the filing organization. Part II requires identifying information on related tax-exempt organizations.

Transaction: In QuickBooks, a transaction type identifies what kind of transaction occurred, such as a customer transaction, bill payment or a bank transfer. When you submit a transaction, you type in a transaction code to represent it.

Unrelated Business Income (UBI): For most organizations, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption

Vendor: A vendor is a person or business that supplies goods or services to a company. Another term for the vendor is the supplier. In many situations, a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms.