IRS Form 990: Tax Preparation Guide for Nonprofits

Forms 990 provide a wealth of financial and programmatic information to enable government regulators, funders, journalists, and the savvy layman to measure a nonprofit’s performance. A copy of the forms must be provided to anyone who asks; charities’ forms are posted for public view on the Internet courtesy of Guidestar.org. These forms are the most widely used tools for evaluating tax-exempt organizations. Schools, health and welfare organizations, business leagues, civic associations, museums, parent groups, garden clubs, private foundations, and the myriad other nonprofit organizations recognized under section 501 of the federal tax code must file this form annually. With the intitiation of electronic filing and a Utah EO Compliance Unit in 2004, the IRS is poised to significantly enhance its scrutiny of forms 990. Clear, correct, and concise preparation of Forms 990-EZ, 990, 990-PF, and 990-T is important, not only as financial documents, but also as a means of communicating an organization’s mission and accomplishment to the public.

Demystifying the Forms 990 for financial professionals and nonprofessionals alike, this user-friendly handbook walks you through the federal tax compliance process to assure maintenance of tax-exempt status. Blazek is widely recognized for her ability to translate complicated concepts into understandable language and explain the why and how of Forms 990 preparation. In this book, you will find:

• Fill-in forms with line-by-line instructions, including a synopsis of applicable tax issues
• A comprehensive Web site with downloadable, key model forms and links to IRS forms (wiley.com/go/blazek_990)
• Clarification of answers that can have several consequences
• Suggestions for dealing with the IRS as an organization grows and changes
• Ways to maximize deductions in calculating tax due on unrelated business income
• Tips for successful navigation of the interactive parts of Form 990-PF and reducing excise tax