effective for 2008 tax years (returns filed in 2009)
Post on 02-Jan-2016
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Reasons for Redesign
The IRS extensively revised the format and c0ntent of
the form based on three guiding principles:
Enhance TransparencyPromote Tax ComplianceMinimize Burden on the Filing Organization
Phased in Over Three YearsBeginning in 2008 tax years, an organization by
file Form 990-EZ if it satisfies both the gross receipts and assets tests:
TAX YEAR Gross Receipts Assets
2008 (Filed 2009) > $25,000 & < $1 mil
< $2.5 mil
2009 (Filed 2010) > $25,000 & < $500,000
< $1.25 mil
2010 and later > $500,000 & < $200,000
< $500,000
New sections:
Line 50 – Five Highest Compensated Employees who received more than $100,000
Line 51 – Five Highest Compensated Independent Contractors who received more than $100,000
NEW ITEMS TO NOTE:Total Number of Volunteers volgistics.pdf
TIMESHEET.xlsMore Descriptive Organization MissionNo more attachments as the new Form 990
provides Schedules (16)Schedule B - ContributorsSchedule D – Supplemental Financial StatementsSchedule G – FundraisingSchedule J – Compensation InformationSchedule M – Non-Cash Contributions
Checklist of required SchedulesDescription of the exempt purpose achievements
of the three largest program service expenses. The IRS will have a code attributable to type of program.
Government, Management, and Disclosure – request information about polices not required by the IRS.Voting membersRelationships between members, officers, key
employeesDocumentation of meetingsWritten PoliciesMonitor and enforce policiesDocument Retention and destruction policyReview and Approval determining compensation
Schedule O – How the Organization makes its governing documents, conflict of interest policy, and financial statements available for public inspection
Statement of Functional ExpensesSeparate Line Items:
10. Payroll Taxes11. Fees for services
b. Legalc. Accountingf. Investment Management
14. Information Technology24. Other expenses (expenses grouped together may not
exceed 5% of total expenses
Example for Volunteer Expense ReimbursementEXPENSE REIMBURSEMENT FORM.xls
Balance Sheet
5. Receivables from current and former officers, directors, trustees, key employees or other related parties.
Schedule A (Required for 990-EZ & 990Public Charity Status and Public Support 1. A church, convention of churches, or association
of churches7. An organization that normally receives a
substantial part of its support from a governmental unit or from the general public
Complete support schedule Part II – note includes current year’s activity.
9. An organization that normally receives:(1)more than 331/3% of its support from contributions,
membership fees, and gross receipts from activities related to its exempt functions
(2)no more than 331/3% of its support from gross investment income and unrelated business taxable income
Schedule G Supplemental Information Regarding Fundraising ActivitiesHow you raised the fundsWritten or oral agreement about professional
fundraising activitiesList all states in which organization is registered
or licensed to solicit funds – in NC you must file for a solicitation license with the NC Secretary of State
http://www.secretary.state.nc.us/csl/Download.aspx
Schedule J Compensation Information
Checklist of Fringe Benefits Provided
Follow written policy regarding compensation and fringe benefits
How the organization established the compensation of the organization’s CEO/Executive Director
Checklist of items to provide tax preparer:Trial Balance
Ensure you have line items with the newly required presentation of the Statement of Functional Expenses
General LedgerBank Reconciliations & Bank StatementsRestricted Cash – documentation of restrictionsLoan history to or from employees & officersFixed Asset Inventory including:
Date Placed In ServiceDetail Description of propertyCost Depreciable Life using Straight Line
Loan History with amortization schedules listing
Payment DatesPayment amounts separated by interest &
principal
Grant DocumentsTax Matters Person (Director/Officer signing the
return)Name and Title
Backup of data
Set of Financials
Listing of contributors NameAddressAmountNon-Cash Contributors
Description of property given
Listing of Board of Directors & Officers (current and former)
Name and TitleAddressAverage Hours Worked per WeekCompensationFringe BenefitsAllocation between Program, Management and
General, and Fund RaisingReportable Compensation from Related
Organizations
List of Independent ContractorsNameAddressDescription of ServicesAmount Paid
Minutes from Meetings
Policies and Procedures
TAX DEDUCTIONS FOR VOLUNTEERS
Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be:UnreimbursedDirectly connected with the servicesExpenses you had only because of the services
you gave Not personal, living, or family expenses
Conventions – If you are a chosen representative attending a convention of a qualified organization, you can deduct unreimbursed expenses for travel and transportation, including reasonable amount for meals and lodging, while away form home overnight in connection with the convention. Meals are not subject to the same limitations as business related expenses whereas they are limited to 50%.
Record keeping is very important. It is wise to keep original receipts for all expenses incurred while performing volunteer activities for a qualified organization.
Examples of the types of expenditures that volunteers may deduct on their tax returns as itemized deductions include:
Transportation – air and land ( auto mileage is presently .14 cents a mile), rental car, parking, tolls…
Communication – telephone, portion of email expenses attributable to qualified organization, postage…
Supplies purchased to perform volunteer duties Non-cash contributions of property (clothing and household items)
Refer to IRS Publication 526 Charitable Contributions and consult your tax advisor. This publication can be found on the IRS website:
www.irs.gov
Host Families and Tax Treatment Publication 526 Charitable Contributions
Foster ParentsA qualified organization must designate the individuals you take into your home for foster care.
You can deduct expenses that meet both of the following requirements:
1. They are unreimbursed out-of-pocket expenses to feed, clothe, and
care for the foster child.
2. They must be mainly to benefit the qualified organization.
You are not allowed to deduct contributions to a specific individual.
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