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Not at all. NPs hire accountants, lawyers, contractors, web designers......all the time.

Is the NP paying a production company to produce a marketing tool to promote the NP or a book they own? That would be an expense, not a donation. Is the NP then selling the book? If to provide funds for the NP's mission, isn't that still allowable income? I don't think it matters that the production company is for-profit. My church hires a for-profit printer to print our letterhead and bulletin covers, all items we use in the administration of our mission. You'll want to read the TE organizational paperwork, such as Form 1023, and their bylaws, as well as the contract between the NP and the production company. Take it step by step to see if it results in any Form 990-T type business income. But that's not forbidden, it just requires tax reporting.

Sounds to me like they are hiring the production company to provide services for the benefit of the NP. With who?

Thanks all for rearranging my perspective. The client used the term 'donation' to the producer and I didn't think through the issue. I will be back in touch to confirm the likely scenario described by Lion EA which I think is correct. The fact that the producer is a personal friend of like mind and wants to help should not color the situation. Yes, my church (treasurer here) uses a for profit company owned by a member for printing materials. I just have too many things rattling around in the brain at this time. This forum is such a gem!

I had one case for tax year 2021 that ended up taking over a year and a half to settle (state issue). Had I billed for that time, it would have exceeded the amount of tax at issue - which itself was over $1,500. Why didn't I bill for it? High school friend of my older daughter, who had quit work to go back to school for some special certification program. Can't get blood out of a turnip, or money out of a starving student.

I wouldn't do it, but is it any different than paying for an extended maintenance contract on a car or a dishwasher?

It looks like they charge you $10 for every return you prepare, including any you may prepare at no charge. That's $1,000 for every 100 returns. How many notices per 100 returns do you receive? One? Possibly two? If it's more than 2 I'd say people need to look into their procedures. Is it worth $500- $1000 to you to have someone else write a correspondence, or to ascertain if the notice is correct?

I spoke with a rep yesterday. It sounds great. I have clients who sometimes get letters that take up my time and energy in the off season. They are often wrong but as you said still require a response. The rep said that I could opt to act as a middle man between them and my client or I could simply say, “I have a team of EA’s and CPA’s working with me who will handle the matter.” If I wanted to be completely hands off. I would probably opt to stay involved in the process but still it would be nice to have someone else to deal with the IRS. Also the $2500 return preparer error benefit was attractive. I’ve only had to cover minor penalties a couple of times in my 36 years but you never know.

SS WH, for instance, if someone earned enough to go over the limit at one job, then get/have another job in the same year, the second employer MUST still WH SS based on their own YTD for the employee. It is up to the employee to get credit/reimbursed. Meaning there is nothing an employee can say to employer 2 to have them stop SS WH even if they have gone over the required amount for the year because of other employment. I suspect retirement is similar in that one employer has no responsibility or ability to monitor any other employer, so in the case of retirement, if the plans allow, the employee can elect to manage their contributions/matches in such a way as to not go over the limit in total. If the employee goes over the limit, it is up to the employee to handle the issue, not the employers. Of course, the employee would be wise to contribute as much as they can if one has more matching funds, or to split it evenly if both have similar matching funds (as a kindness to both employers).

Still not back to calm. Just got a nasty gram from a person signing their name with CPA at the end who went on about a 941b having to show their deposits. Even quoting the text on the form where it is clear it is for liability not deposits, did not seem to change their mind.

Lately, I have not been impressed with the postal services handling of return receipt mail. Twice I have received mail addressed to me with return receipt cards attached that was just placed in my box with the return receipt cards attached. I could sign or not sign as i chose as no one attempted to get a signature from me. In both cases, I did sign the cards and drop them back in the mail, but I have to admit in at least one instance it was several days after I received the certified letter that I got around to dealing with it. This is not the way that is supposed to work.