Question 1

How can I find my exempt organization's tax year?

Accepted Answer

The tax year of any organization will usually be a period of 12 consecutive months.

Question 2

My organization paid compensation for employees of other organizations. Should I report it in 990-EZ?

Accepted Answer

If your organization acquired services from a person, who is an officer of a management services company or who works in an employee leasing company or a professional employer organization, then you must consider that person as your employee.

Question 3

How should organizations record the payment transactions made with a controlled entity on 990-EZ?

Accepted Answer

If an organization has engaged in a transaction with a controlled entity, and if the transaction value exceeded $50,000, then they are supposed to file Form 990 instead of 990-EZ and must attach Schedule R along with the information return.

Question 4

Do I need to state the compensation of every official serving in my organization on Form 990-EZ?

Accepted Answer

Yes, you must list the compensation paid to every individual of your organization while filing the annual information return. It includes every officer, director, trustee, or key employee.

Question 5

Our organization filed 990-EZ on time. But the IRS imposed a penalty on us, what would be the reason?

Accepted Answer

The IRS would have imposed a penalty for any of the following conditions.

Question 6

What needs to be done if your organization maintained some donor-advised funds during the tax year?

Accepted Answer

If your organization maintained some donor-advised funds for the year, then your organization is considered as a sponsoring organization, under Section 501(c)(3).

Question 7

Is additional reporting needed for an organization that has financial accounts in a foreign country?

Accepted Answer

Yes, if your organization had an interest or an authority over some financial accounts (bank account, securities account or other financial accounts) in a foreign country whose combined value exceeds $10,000 at any time during the tax year

Question 8

What type of contributions to be reported in Form 990-EZ?

Accepted Answer

Here is the list of contributions that must be listed under Line 1, Part I, Revenue, Expenses, and Changes in Net Assets or Fund Balances of Form 990-EZ

Question 9

What are the program service revenues that must be listed in Form 990-EZ?

Accepted Answer

Program service is a major objective of a tax-exempt organization to fulfill the purpose or mission under which it was started. These organizations generally perform activities like adoptions, recreation for the elderly, rehabilitation, or publication of journals or newsletters.

Question 10

Does an organization need to report the amount paid to other organizations as a grant in Form 990-EZ?

Accepted Answer

Generally, an organization that paid a grant amount over $5,000 to any individual or a grantee organization during the tax year must report those amounts in Form 990-EZ.

Question 11

What type of miscellaneous expenses must be included in Form 990-EZ?

Accepted Answer

The expenses made by an organization such as penalties, fines, and judgments; unrelated business income taxes; insurance interest; &#160;depreciation

Question 12

What type of changes in an organizing document must be reported while filing Form 990-EZ?

Accepted Answer

Your organization must report the following significant changes made in the organizing documents such as the name of the organization, its exempt purpose, or mission.

Question 13

Is any additional reporting needed for organizations that received income from an unrelated business?

Accepted Answer

Yes, if your organization has received a gross income of $1,000 or more from an unrelated business or trades for the tax year, then it must file Form 990-T along with the 990-EZ return.

Question 14

How do I check the status of my application for Tax-Exempt status?

Accepted Answer

Once your application is assigned to a specialist, and the IRS has not contacted you regarding your application, you can contact us by phone, fax, or mail to check on the status of your application.

Question 15

What is Fair Market Value (FMV)?

Accepted Answer

Fair market value (FMV) s typically the current price an asset or a property could be sold in the open market.

Question 16

What is a commercial co-venture?

Accepted Answer

Commercial co-venture is the&#160;arrangement with an outside organization or an individual to use your organization's name in a sales promotion campaign and agree to contribute a certain percentage.

Question 17

What are the pieces of information required to complete the “Contributions, Gifts & Grants” section?

Accepted Answer

Contributions, Gifts & Grants section of 990-EZ or 990, you report all the contributions and grants the organization received through fundraising events or any other events.

Question 18

How to fill Revenue and Contributions from Fundraising Events?

Accepted Answer

In the&#160;section Revenue and Contributions from Fundraising Events under Contributions, Gifts & Grants, you enter the gross income and the contribution received from the&#160;event.

Question 19

How to fill Contributions, Gifts, Grants, and Similar Amounts Received from Disqualified Person?

Accepted Answer

To fill&#160;Contributions, Gifts, Grants from Disqualified Person, you'll need to provide the name of the disqualified person, and tell if the grant received was in the form of cash or noncash.

Question 20

How to fill Contributions, Gifts, Grants, and Similar Amounts Received from Commercial Co-Venture?

Accepted Answer

To fill Contributions, Gifts,&#160;and Grants from Commercial Co-Ventures, you'll need to provide the name of the disqualified person, and tell if the grant received was in the form of cash or noncash.

Question 21

How to fill Contributions, Gifts, Grants, and Similar Amounts $5,000 or more you receive?

Accepted Answer

To fill Contributions, Gifts, Grants, and Similar Amounts $5,000 or more you receive, provide the contributor's name, the nature of the contributor (individual, associated organization, and etc.,) and specify the type of contributions- cash or noncash.

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