Form 990 - Accounting for Non Profit Organizations

Form 990 related to non-profit accounting and non-profit organizations

Hinkle + Landers, PC, one of the leading Albuquerque CPAs and accounting firms, stays up to date on news that has an impact the accounting industry and our community.  The following is a blog by Steve Nolan, CPA, an Audit Manager of Hinkle + Landers, PC related to the tax form 990 related to non-profit accounting for non profit organizations.

My daughter is a program director for a non-profit organization that operates a small organic farm for the purpose of educating about healthy and responsible eating.  The program is funded by grants mostly from two mainline church denominations.  The program is not required to file any returns with the Internal Revenue Service such as a Form 990 information return.  She also volunteers for another organic farm that also promotes education concerning healthy food consumption.  This organization is a non-profit organization and is required to file a 990 information return.

Why would one non-profit organization be required to file a Form 990 and one non-profit organization not required to file?  I will answer this towards the end of the article.

Non-profit Accounting in Albuquerque spans a large spectrum of charities and health and welfare organizations with different purposes that meet non- profit criteria.

According to IRS regulations covering Non-profit Accounting in Albuquerque, and in general, requires non-profit organizations that have $50,000 or less in gross receipts to file a Form 990N through an e-Postcard.  An e-Postcard is simple to complete with eight questions required to be answered.  There is no penalty for late filing of an e-Postcard but organizations that does not file for three years risks losing their exempt status.  The non-profit organization may also file a regular Form 990 if it wishes.

Non-profit organizations with less than $200,000 in gross receipts or $500,000 in assets may file Form 990-EZ of a full Form 990.  The Form 990-EZ is shorter than the Form 990 but does require some expertise to complete.

Non-profit organizations that have at least $200,000 in gross revenue and $500,000 in assets are required to file a complete Form 990.  Form 990 has a number of schedules to be completed and requires a good working knowledge of preparing that information return for Non-profit Accounting in Albuquerque.

A Form 990-PF is required to be filed for a private foundation non-profit organizations.

Hinkle + Landers, CPAs, who are Albuquerque Accountants and have more than 40 years experience in filing Form 990s for Non-profit Accounting in Albuquerque can provide expert advice and services for any non-profit organization.

So why would two seemingly similar organizations mentioned above have different filing requirements.  It is because certain non-profit organizations are exempt from filing any type of Form 990.  These include churches and religious organizations, organizations included in a group return and organizations require filing another type of return.

Firm Profile:  Hinkle + Landers, CPAs is one of Albuquerque New Mexico’s leading accounting firms.  Hinkle + Landers, CPAs has been operating for over 40 years in Albuquerque as well as all parts of New Mexico.  Hinkle + Landers, CPAs also provides audit, fraud and forensic accounting services as well as tax preparation, bookkeeping and elder care in Albuquerque New Mexico.