Nonprofit Tax Returns

It’s going to happen. At some point, you or your boss is going to get the following sob story from a client.

Dear My Favorite CPA (when its starts this way you know you are in trouble – heh),

I know that you only prepare my individual and business tax returns. But I really need your help. I am on the board of directors of a charity that just got an IRS notice which says we owe them $30,000!!!

We did not discover until recently that the prior controller did not file last year’s Form 990 tax return and the IRS wants $100 per day in penalties. The letter also says if the amount is not paid then the IRS will put a lien on our assets!!! Help!!! [click to keep reading]

Raise your hand if you do your best to avoid working on nonprofit tax returns. If your hand is up then you are in the majority. Most tax partners, managers and staff avoid them like the plague.

The 990 tax forms are very different from individual and business tax returns and ask a lot of informational questions. As a result, they can absorb a lot of the firm’s time and expense. In addition, since the entity is a charity, it is likely that they will ask for rock bottom prices or ask you do to the tax return as a charitable donation.

Ok, then why does the firm do them? [click to keep reading…]

Learning How to Get the IRS to Waive a Nonprofit Late Filing Penalty

Learn How to Prepare Small Nonprofit Tax Returns in Five Minutes

Help a fellow tax preparer or accounting major. Share!

Help a fellow tax preparer or accounting major. Share!