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no plagiarize, spell check, and check your grammar.Ask at least one question in response to an original peer post that you would like the author to explore further. Please use the references below
Form 990 is an annual information return required to be filed with the IRS by most organizations exempt from income tax under section 501(a), and certain political organizations and nonexempt charitable trusts (IRS.Gov, n.d.). The purpose of the form is to ensure that the organization is tax compliant and to enhance transparency to ensure that donor funds are being allocated appropriately. Organizations with revenues greater than $50,000, except religious congregations, are required to file an annual Form 990, 990-EZ, or 990-PF with the IRS; while organizations with revenue of less than $50,000 are required to file a Form 990-N form (IRS.Gov, n.d.). In 2009, the IRS introduced a revised 990 form called 990-N which includes questions related to governance as well as finances and programs. Since 2008, even small nonprofits that are not required to file Form 990 are required to electronically file Form 990-N, also known as the e-Postcard. It includes minimal information that essentially reflects the organization’s existence, without the data encompassed by Form 990 (Worth, 2017). The new form included specific yes or no questions that questioned the practices and policies of the nonprofit boards.
A 990 form could be used as a primary source of information for the government and the stakeholders of the organization. The 990 form provides specific information on how funds and resources are allocated and show the donors how their money is being spent. This could also be used in seeking donations and grant writing because it shows a clear break down of what funds are needed and why.
If an organization submits an incomplete 990 form and submits incorrect information, the IRRS will issue a letter to the organization giving them a fixed amount of time to make changes. If the corrections are not done within that time frame, the person failing to comply will be charged a penalty of $10 a day; with the maximum penalty on all persons for failures for any one return shall not exceed $5,000 (IRS.Gov, n.d.). If an organization chooses not to file a 990 form, or purposefully includes incorrect information it could be subject to fines or imprisonment.
GuideStar. (2011, December 22). Form 990 Tutorial – Full [Video File]. Retrieved from
IRS.Gov (n.d.). Tax Information for Charities and Other Non-Profits. Retrieved from https://www.irs.gov/charities-non-profits
The IRS website provides tax information to nonprofits. This site will help learners demonstrate knowledge of federal and state regulations governing nonprofit agencies and organizations.
Worth, M. J. (2017). Nonprofit Management: Principles and practices (4th ed.). Retrieved from https://redshelf.com
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