BulldogTom Posted February 17, 2023 Report Share Posted February 17, 2023 I am volunteering with a Non-Profit (74th National Square Dance Convention) and I have never prepared a 990. Never had a non-profit client. I don't think it is something that is above me, just not familiar. Anyone willing to chime in and give me some pointers? This is the first year of the non-profit. It is expected to be in existence for 5 years and then fold. The corporation has been formed (June 30, 2022) and the 501 ( c ) 3 status has been approved by the IRS. All of the income activities so far have consisted of selling admissions to the convention, soliciting donations, selling t-shirts and miscellaneous branded items to raise money for the convention. Total revenue as of 12/31/2022 is less than 50K. The costs so far are deposits on facilities, purchases of miscellaneous items for sale, and legal fees for incorporating and and securing non-profit status. Total Costs to date are less than 10K. Can I use the 990N for the first year? Thanks in advance. Tom Longview, TX Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted February 17, 2023 Report Share Posted February 17, 2023 Are they expecting income to remain below 50K? Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 17, 2023 Author Report Share Posted February 17, 2023 29 minutes ago, schirallicpa said: Are they expecting income to remain below 50K? 2023 and 2024 probably under 50K. 2025 probably over. After 2025 definitely under. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 17, 2023 Author Report Share Posted February 17, 2023 I read something about needing a special ERO account to file a 990 series form. Is that correct? Tom Longview, TX Quote Link to comment Share on other sites More sharing options...
GLJEANNE Posted February 17, 2023 Report Share Posted February 17, 2023 For sure go for the 990-N. Check with your state to see what they require. Nothing special to e-file it, there's a 887-EO form. The only pain is there's 2 different sections on that, and I never remember, year to year, which one to use until ATX tells me I used the wrong one, lol. In 2025, you'll still hopefully be able to file the 990-EZ. It's work, but nothing too complex. Breaking up the income into different categories, and there's a section where you describe the different programs/activities, and give a total of the expenses for each. Just take a look at the first couple pages of the EZ and you'll see what I mean, it's really not bad if you're keeping the books for them. 1 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 17, 2023 Author Report Share Posted February 17, 2023 Should I just start with the 990 EZ? So that I am used to it when 2025 comes around? Tom Longview, TX Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 17, 2023 Report Share Posted February 17, 2023 1 hour ago, BulldogTom said: Should I just start with the 990 EZ? So that I am used to it when 2025 comes around? If average is $50,000 or less for 2023, 2024 and 2025 you would not need to file. Instead of practicing for a return that may or may not be filed, why not spend time instead with a 990 CPE course? I would also keep in mind the practice returns will likely become public information posted for viewing on the IRS EO lookup website. 1 Quote Link to comment Share on other sites More sharing options...
Lynn EA USTCP in Louisiana Posted February 17, 2023 Report Share Posted February 17, 2023 Those with under $50,000 file the 990-N postcard. If returns are not filed for 3 years tax exempt designation will be revoked by IRS 2 Quote Link to comment Share on other sites More sharing options...
Randall Posted February 18, 2023 Report Share Posted February 18, 2023 Whew! I stopped doing 990s years ago. Recently turned down a request from a nonprofit 990. Quote Link to comment Share on other sites More sharing options...
GLJEANNE Posted February 19, 2023 Report Share Posted February 19, 2023 No, start with the 990-N. You can spend some time in the off-season looking over the 990-EZ, no need to torture yourself now. 2 Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 19, 2023 Report Share Posted February 19, 2023 Check state requirements. MA requires filing the 990-EZ with the MA Public Charities Report, so there is NO Massachusetts nonprofit that can escape the EZ. The few non-profits I've dealt with we've filed the EZ since it had to be prepared for the state. 1 Quote Link to comment Share on other sites More sharing options...
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