5 Things You May Not Know About IRS Form 990

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With over 300 pages of instructions and 300 possible questions to answer, the IRS Form 990, Return of Organization Exempt From Income Tax is a complex and extensive form. It is filed annually by most exempt organizations, including charities. Here are five things you may not know or may have forgotten about Form 990:   

  1. It is a misnomer to call Form 990 an “income tax return.” There is no income tax calculation in the core Form 990 or within any of the accompanying schedules. The fact that it is not an income tax return becomes very important when attempting to apply the Internal Revenue Code to the filing of Form 990. Generally, where the Internal Revenue Code and the related regulations only reference an “income tax return,” the code or regulation in question will not normally apply to Form 990. It is very important, however, to remember that organizations subject to unrelated business income taxes (UBIT) file a separate Form 990-T, Exempt Organization Business Income Tax Return, which can be subject to the Internal Revenue Code and the regulations related to the filing of an income tax return.

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8 Ways to Save Money at Lunchtime

Shutterstock_517810591Lunch prices are getting out of control. For instance, working in midtown Manhattan, it is a challenge to find lunch for $10 or less. That amounts to spending approximately $50 a week or $2,600 a year. Consider how these funds could instead be used to help you reach your intermediate or long-term goals— such as buying a home or saving for retirement.

According to a recent study by research firm NDP Group, the average lunch costs $8.36 nationwide. Because of this, Americans are starting to change their lunchtime habits. In fact, the same study reported that traffic at eateries during lunchtime is down 7% since last year. Below are some tips to help you stick to a lunchtime budget regardless of whether you choose to make lunch, buy it already prepared or join the (shorter) line at the sandwich, salad, and soup place near your office.

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Blast from the Past: Lessons Learned from #AdviceAt25

Advice at 25Look back at your 25-year-old self — what would you tell her or him? Would you share career wisdom? Life advice? What’s the one thing you’d share that could impact a young person? 

Earlier last week, we asked our social media audience what advice they would share with their younger self using the hashtag #AdviceAt25. Here’s what they said:

Naveed Hussain

“Pave your own way, don’t lose yourself trying to be and look like others.”

Lisa Hastings

“Be brave! Hurdle yourself forward and ask for help along the way. Make the ask specific – an introduction, critical feedback – and cast a wide net of people in your circle.”

Dan Griffiths

“Invest even more energy into building a network. It's much like saving for retirement. Small investments made early on can pay huge dividends down the road and it requires huge investments later in your career to make up for a failure to make the small investments when you're just getting started.”

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Text Me Not: Hidden Perils of Modern Communication for CPAs

Woman on iPhoneTweets. Likes. Posts. Not so long ago, those three words were not only unrelated, they had nothing at all to do with communication. But as communication methods and strategies have advanced, the speed of information has approached infinity. As a result, expectations have grown that responses will be similarly fast and, in many cases, extremely concise. There’s an old saying about the kind of person who is incapable of a simple answer: ask them what time it is, and they’ll tell you how the watch works. Today, tolerance for that trait is at an all-time low.

But while pithy responses can be good for personal communication, they might not always be suitable for business. For CPAs in particular, there can be consequences for choosing an inappropriate means of communication with clients on certain matters. Text messaging in particular is fraught with perils. I recently spoke with Gerard Schreiber Jr., CPA, principal at Schreiber & Schreiber in Metairie, LA, to discuss how communicating with clients has changed over the years, especially with regard to texting.

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Six Tips for Valuation Experts in High Stakes Divorces

Man signing divorce papersThe headlines announcing Brad Pitt and Angelina Jolie’s divorce were just the latest in a slew of stories about celebrity splits. In fact, there are more than 800,000 divorces and annulments in the United States each year, according to government statistics. Based on my experience performing valuations in many high-profile divorces, much of the advice I’d offer to my fellow practitioners applies whether you’re working with Brad and Angelina or the divorcing, high-powered owner of a local business. Below are my top tips:

  1. Determine what’s at stake and how location matters. The assets in a divorce will typically include cash, retirement funds or a home. Often, the largest asset at stake is a closely held business. That can be a professional practice – if one or both partners are, say, a lawyer, physician or accountant – or an operating entity, such as a retailer, wholesaler, manufacturing business or a farm. The complexity of the engagement can be affected by the jurisdiction in which the case is being heard and can depend on state law. Be prepared, as the legal environment may produce unexpected complexities.

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