What You Need to Know:
Attorneys in Polsinelli Shughart PC’s nonprofit organizations group recently published a book entitled, “The New Form 990 – Law, Policy and Preparation.” The redesigned IRS Form 990 is the most significant development impacting tax-exempt organizations in the last 40 years. The Form 990 is no longer just a simple information return. It is a comprehensive self-audit, including significant disclosure of executive compensation, related party transactions, transactions with interested persons, noncash contributions, and more than 20 governance policies and procedures. Polsinelli Shughart PC nonprofit organizations group members Bruce R. Hopkins, Douglas A. Anning, Virginia C. Gross, and Thomas J. Schenkelberg co-authored the new book, which is an all-inclusive resource for understanding and completing the revised Form 990.
Nonprofit organizations have been struggling to understand and comply with the new form over the past year. December 31, 2008 was an important deadline for nonprofits with December 31 year-ends because the new form is effective for tax years beginning in 2008. Organizations with a December 31 year-end will be filing the new Form 990 on or before May 15, 2009. Organizations with fiscal year-ends may still have time to comply with the Form 990 before their initial filing of the new form. Further, many organizations that were required to file a Form 990 in the past may find that they can file a Form 990-EZ for 2008 due to new, higher thresholds for filing the EZ form. However, these higher thresholds are temporary and generally will serve only to delay the initial filing year for the new Form 990. Many nonprofits that are eligible to complete the Form 990-EZ for 2008 will no longer be eligible to use the Form 990-EZ in 2009 and/or 2010 because the maximum asset and income thresholds for eligibility to file the EZ Form are substantially reduced for 2009 and 2010. When the transition to the new Form 990 is fully implemented in 2010, organizations with gross income in excess of $200,000 or total assets in excess of $500,000 must file the new Form 990 rather than the Form 990-EZ.
What You Need to Do:
Nonprofit organizations should consider the impact of the redesigned Form 990 on its filing compliance. Preparation and compliance with the new Form 990 requires much more than merely the reporting of numbers. A legal review of the Form 990 is necessary to ensure compliance in many cases. Much more diligence regarding the activities of a nonprofit organization and information from the nonprofit’s officers and directors is required to complete the filing. Our attorneys have been focused on the Form 990 since the form was initially introduced in 2007. We are prepared to answer the most complex legal compliance questions presented by the new form. We have also drafted and implemented many versions of the governing policies and procedures requested by the form.
The New Form 990 – Law, Policy and Preparation is an indispensable resource for understanding and preparing the new Form 990. To purchase the book, please click here.
For further information, please contact any of the attorneys in our nonprofit organizations group.
|
 |
About Polsinelli Shughart PC
With more than 480 attorneys , Polsinelli Shughart PC is a national law firm that is a recognized leader in the areas of business litigation, financial services, real estate, business law, labor and employment, construction, life sciences and health care. Serving corporate, institutional and individual clients regionally, nationally and worldwide, Polsinelli Shughart is known for successfully applying forward-thinking strategies for both straightforward and complex legal matters. The firm can be found online at www.polsinelli.com. |
