D & B TAX GROUP, LLC                

Form 990 Information

Form 990_Return of Organization Exampt From Income Tax







    Form 990 Preparation Services



We can prepare your organization’s Form 990, 990 EZ, or 990-T, including all relevant Attachments and Forms. If your nonprofit has any returns that may be delinquent these returns should always be filed first. Doing so makes a strong argument for the abatement of any penalties that may be assessed.

 
Forms 990 Due Dates

Form 990, 990 EZ, and 990-T are due on the 15th day of the 5th month after your organization’s tax year ends.

 

If your fiscal year ends: Form 990, 990EZ, 990 T is due:
December 31 May 15
June 30 November 15
September 30 February 15


Extensions of time To File

Your organization can apply for an automatic 3 month extension. If you need more time after that, you can request an additional 3 month extension. We have never known an extension request to be turned down, unless the extension request was not filed by the due date, or if there is a history of late filing abuses.

 Paying Taxes on Unrelated Business Income

If your organization has income from business activities which are unrelated to its reason for being tax-exempt, such income may be subject to Federal and State income tax. However, there are MANY exceptions provided by the Internal Revenue Code. If your organization is paying tax on unrelated business income by filing Form 990-T every year, consider having D&B TAx Group review the nature of the activities generating the income. Many tax preparers only prepare a handful of Form 990s each year and are not familiar with the fine points of avoiding tax on unrelated business income. These rules are not related to typical corporate and individual tax rules.

Basic financial information we will need from your organization to prepare the Form 990:

  • Copy of last year’s tax return (if you filed one).
  • Copy of independent audit report (if an audit was performed).
  • Copy of any notices from the IRS regarding unresolved issues.

We will need a breakdown of your organization’s revenue classified by type, like this:

  • Cash donations received
  • Cash donations from special events (annual dinner, bake sale, etc) *
  • Non-cash donations received (food, clothing, car, stock, etc)
  • Government Grants
  • Non Government Grants
  • Fees your organization received for services it provided
  • Revenue from inventory purchased and resold (if any)
  • Revenue from non-inventory items sold (tangible assets, stock)
  • Revenue from special events (not including contributions) *
  • Other Revenue (list according to category)

* Example: Your organization sells t-shirts at a fundraiser. You purchase the t-shirts for resale for $5 each. A patron buys a t-shirt with a price of $10, but pays you $30 and tells you to “keep the change.” Result: You have $10 gross revenue from the sale of the t-shirt, which gives you a $5 profit. And you have received a $20 cash contribution. And yes, you actually have to keep track of those details.

Expenses:

We will need a list of your organization’s expenses, by category (officer’s salary, other salary, payroll taxes, rent, electric, supplies, travel, etc). If your organization’s books classify expenses based on whether they are program, management, or fundraising, we’ll need that information as well.

 

Additional information:

We will need your organization’s beginning and ending cash balance according to your checkbook register. If you do not balance the checkbook, you need to let us know this.
List of assets (if any) or depreciation schedule (furniture, building, computers, equipment, etc)

       

Help with Form 990-N

If your organization needs help in meeting its Form 990-N requirement,        D&B Tax Group is here to assist you. By having you answer a few questions, we can fill out and submit the Form 990-N for you. Contact us and we will be glad to assist you. Note that Form 990-N is a federal requirement. Additional state filing requirements may or may not apply to your organization.

What is Form 990-N?

Form 990-N is an electronic form that is to be used by nonprofits to meet the new notification requirement for nonprofit entities not required to file a Form 990 or Form 990-EZ. If your organization has not been required to file form 990 / 990-EZ because its gross receipts are not normally more than $50,000, your organization will be required to submit Form 990-N. The purpose of the form is to notify the IRS that your organization is not required to file a Form 990 or 990-EZ, and to verify its continued existence and qualification. Churches do not have to file Form 990-N.

If your nonprofit organization has not applied to the IRS for official recognition of its tax exempt status using Form 1023 or 1024, see additional information further on Non-Profit Organization Page

Information which your organization has to provide to the IRS on Form 990-N:

  • The legal name of the organization.
  • Any name under which the organization operates or does business.
  • The organizations mailing address and web site address (if any).
  • The organization’s taxpayer identification number.
  • The name and address of a principal officer.
  • Evidence of the continuing basis for the organization’s exemption from filing Form 990 / 990-EZ.
  • Any other information necessary to process the return (such as the tax period for which the notice is being submitted).

 

When do I have to submit Form 990-N?

Form 990-N has the same due date as form 990 and Form 990-EZ, which must be filed on or before the 15th day of the 5th month following the end of the tax year for which the notification is being submitted. If your organization’s tax year ends on December 31st, Form 990-N must be submitted on or before May 15th of the following year. If your organization has a June 30 year end, Form 990-N is due November 15th. There is no provision for an extension of time to submit Form 990-N (other than the one-time filing relief which expired 10/15/2010).

How does our organization show that it continues to be exempt from Form 990 / 990-EZ filing requirements?

IRC Section 6001 requires that all organizations maintain records. These records will provide evidence of the continuing basis for the organization’s exemption from Form 990 / 990-EZ filing requirements. In other words, your accounting records will prove that your organization’s gross receipts are below the $50,000 filing threshold. Form 990-N will require that you simply state that the organization’s annual receipts are normally $50,000 or less. It will ask for the organization’s web site URL (if any), and for the name and address of the principal officer of the organization. There is also a place to indicate if the organization is going out of business. You will need to know the organizations Employer Identification Number (EIN) in order to file Form 990-N.

      

Our organization is small, but we have unrelated business income and we file a Form 990-T every year. Does this mean we don’t have to file Form 990-N?

Filing Form 990-T does not relieve the organization from the requirement to submit Form 990-N.

Filing Form 990-N does not relieve the organization from the requirement to file Form 990-T if there is unrelated business taxable income to report.

Is the information we provide about our organization on Form 990-N open to public inspection, just like Form 990?

Yes, the Form 990-N is subject to the public disclosure and inspection requirements of IRC section 6104. When you submit Form 990-N electronically, there should be a form to print to indicate to show that you filed.

What are the penalties for not submitting Form 990-N?

Section 6652(c)(1)(E) of the Pension Protection Act of 2006 provides that there is no monetary penalty for failure to submit Form 990-N. However, if your organization fails to submit Form 990-N for 3 years in a row, the penalty is automatic revocation of your tax exempt status. The revocation is effective beginning the date the IRS determines was the last day the organization could have timely filed the third required Form 990-N.

If our tax exempt status is revoked for not filing Form 990-N for three consecutive years, can we get it back?

Any organization whose tax-exempt status is revoked for this reason must apply to the IRS using Form 1023 or Form 1024 (whichever is applicable) in order to obtain reinstatement regardless of whether such organization was originally required to make an application for tax-exempt status. If, upon application for reinstatement of tax-exempt status, an organization can show to the IRS that there was reasonable cause for the failure to submit Form 990-N as required, the IRS may, at its discretion, reinstate the organization’s tax exempt status RETROACTIVE to the date of revocation.

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            D & B Tax Group,LLC
    4040 Sunbeam Road
     Jacksonville, FL 32257
     Phone    904.551.2892
     Fax        904.551.3864

       
ali@dbtaxgroup.com