Revised Form 990 A Line-by-Line Preparation

The accurate and complete preparation of Form 990-the information return that must be filed annually by most types of tax-exempt organizations-is a key factor in maintaining public image and fundraising capabilities. The newly redesigned From 990 was released in December 2008 with significant revisions to the initial June 2007 draft. Preparation of the new return will require tax-exempt organizations to gather extensive new information about their activities for disclosure on the new form beginning with their 2008 tax year.

Jody Blazek is a partner in Blazek & Vetterling, a CPA firm focusing on tax and financial planning for exempt organizations and the individuals who create, fund, and work with them. BV serves over 400 nonprofit organizations providing financial reports and tax compliance and planning services. She is the author of six books in the Wiley Nonprofit Series: Nonprofit Financial Planning Made Easy; IRS Form 1023 Preparation Guide; IRS Form 990 Tax Preparation Guide for Nonprofits; Tax Planning and Compliance for Tax-Exempt Organizations, Fourth Edition; Private Foundations: Tax Law and Compliance, Third Edition; and The Legal Answer Book for Private Foundations, the latter two volumes coauthored with Bruce R. Hopkins.

Amanda Adams is a tax manager at Blazek & Vetterling with extensive experience in public charities and also private foundation tax matters through her work with Foundation Source. She is a member of the American Institute of Certified Public Accountants, the Texas Society of Certified Public Accountants, and the Houston Chapter of CPAs.

Preface	p. ix
Acknowledgments	p. xiii
About the Authors	p. xv
Redesigned Form 990	p. 1
History of Redesign Project	p. 3
Highlights of Revised Form 990	p. 5
Filing of New Form Delayed for Many	p. 9
Find Out Why Organization Qualifies for Tax Exemption	p. 10
Who Is Required to File What	p. 11
Filing for New Organizations	p. 12
Who Is Not Required to File	p. 12
Filing Deadline and Fiscal Year	p. 13
New Form 990-N (e-Postcard)	p. 13
Electronic Filing of Returns	p. 14
Group Returns and Annual Affidavit	p. 15
Public Inspection of Forms 990 and 1023/1024	p. 16
Notes	p. 17
6/14/07 Draft of Core Form	p. 19
BV Suggested Revisions	p. 29
Form 990-EZ	p. 30
Good Accounting Makes a Good 990	p. 35
Tax Accounting Methods	p. 37
Professional Accounting Standards	p. 38
Chart of Differences Between GAAP and IRS Rules	p. 42
Notes	p. 45
The Core	p. 47
2008 Form 990 Core	p. 47
Part I Summary	p. 48
Part II Signature Block	p. 50
Part III Statement of Program Service Accomplishments	p. 50
Part IV Checklist of Required Schedules	p. 53
Part V Statements Regarding Other IRS Filings and Tax Compliance	p. 56
Part VI Governance, Management, and Disclosure	p. 64
Part VII Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors	p. 73
Part VIII Statement of Revenue	p. 81
Part IX Statement of Functional Expenses	p. 88
Part X Balance Sheet	p. 95
Part XI Financial Statements and Reporting	p. 97
Notes	p. 97
Transactions with Interested Parties Questionaire	p. 100
Form 990, Schedules A through R	p. 103
Schedule A	p. 103
Schedule B	p. 120
Schedule C	p. 125
Schedule D	p. 132
Schedule E	p. 146
Schedule F	p. 149
Schedule G	p. 155
Schedule H	p. 160
Schedule I	p. 165
Schedule J	p. 170
Schedule K	p. 173
Schedule L	p. 174
Schedule M	p. 182
Schedule N	p. 188
Schedule O	p. 192
Schedule R	p. 195
Notes	p. 200
State Unified Registration Statement	p. 204
Interested Party by Part and Type	p. 223
Form 990-T: Exempt Organization Business Income Tax Return	p. 225
What Is Unrelated Business Income?	p. 226
Exceptions and Modifications from Tax	p. 228
Unrelated Debt-Financed Income	p. 231
Who Files Form 990-T?	p. 233
Due Dates, Tax Rates, and Other Filing Issues	p. 234
Normal Income Tax Rules Apply	p. 236
The Unique Design of the 990-T	p. 238
Categories of Deductions	p. 243
Cost Allocations	p. 246
In-Kind Donations	p. 248
Notes	p. 248
Analysis of Corporation versus Trust 990-T Issues	p. 252
The Private Foundation Return	p. 253
Successful Completion of Form 990-PF	p. 253
The Part I Columns	p. 255
Line-by-Line Instructions for Revenues	p. 257
Line-by-Line Instructions for Expenditures	p. 261
Part II: Balance Sheets	p. 265
Part III: Analysis of Changes in Net Worth or Fund Balances	p. 266
Part IV: Capital Gains and Losses for Tax on Investment Income	p. 267
Reports Unique to Private Foundations	p. 268
Part V: Reducing the Tax Rate	p. 268
Part VI: Calculating the Excise Tax	p. 269
Part VII-A: Proof of Ongoing Qualification for Exemption	p. 270
Part VII-B: Questions Seeking Evidence That No Sanctions Apply	p. 275
Part VIII: Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors	p. 276
Part IX-A and B: Summary of Direct Charitable Activities and Program-Related Investments	p. 278
Part X: Minimum Investment Return	p. 279
Part XI: Distributable Amount	p. 279
Part XII: Qualifying Distributions	p. 280
Part XIII: Undistributed Income	p. 280
Part XIV: Private Operating Foundations	p. 282
Part XV: Supplementary Information (Lines 1-2)	p. 282
Part XV: Grants and Contributions Paid During the Year or Approved for Future Payment (Line 3)	p. 283
Part XVI-A: Analysis of Income-Producing Activity	p. 285
Part XVII: Information Regarding Transfers to and Transactions and Relationships with Noncharitable Exempt Organizations	p. 286
Notes	p. 287
Index	p. 289
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Revised Form 990 A Line-by-Line Preparation Guide

Summary

Author Biography

Table of Contents

Supplemental Materials