Introduction to Form 990: Not-for-Profit Tax Compliance
Most tax-exempt, not-for-profits (NFPs) are required to file an annual information return Form 990, which is filed with the IRS and available to the public. Accurate and complete reporting of the Form 990 is critical, not only to maintain an NFP’s tax-exempt status, but also to uphold the organization’s reputation and its ability to raise funds from donors, members or other supporters. Some of the most heavily scrutinized sections of the Form 990 include the questions regarding an NFP’s governance practices, such as the composition of the entity’s board of directors, its executive compensation practices and disclosure of organizational policies.
In this CPE course, you will learn the fundamentals of the Form 990 series of returns, including the basic financial and non-financial information necessary for preparing a complete and accurate return. Topics in this course include the structure of the core Form 990 and related schedules, adjustments to reconcile the Form 990 to an entity’s financial statements, and common errors that should be avoided.
- When you complete this course, you will be able to:
- Recall the purpose of the Form 990
- Differentiate between the various forms included in the Form 990 series of returns (Form 990, 990-EZ, and 990-N) and identify which form the entity must file
- Identify the structure and core components of the Form 990 and related schedules
- Identify some of the most common adjustments needed to reconcile the Form 990 to financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP)
- Define basic terminology that is necessary to understand the reporting requirements of the Form 990
- Purpose of the Form 990
- Form 990 series of returns
- Basic filing requirements
- Structure of the form 990 and related schedules
- Reconciling Form 990 to financial statements
- Common errors