The firm of Laura J. MacDonald, CPA, Inc. prepares over 50 Federal Form 990’s (Federal Tax Return for Exempt Organizations) annually. As a result, we are extremely familiar with the filing requirements unique to non-profit organizations and often deal with the IRS in resolving non-profit related tax issues. Our extensive experience in non-profit tax compliance has resulted in significant efficiencies in this area. Consequently, our fees charged for this service are generally lower than other less experienced firms. Typically a Form 990 can be completed for $400-$800.
Redesign of Federal Form 990
In 2008, Federal Form 990 was redesigned and is significantly more complex than the old version of this form. In addition to this redesign, beginning in 2010, the IRS began offering a small business health care credit which provides many small non-profits with the opportunity to receive a significant refund from the IRS for health care costs. All of these changes have made preparation of Form 990 a challenge for many small non-profit agencies.
Importance of Timely Filing Federal Form 990
The most common and costly error associated with Federal Form 990 is failure to file this form on a timely basis. The original due date is 4 ½ months subsequent to year-end. The form can be extended up to an additional 6 months after the original due date. Penalties for late filing are assessed at a minimum of $20-$100 for every day the return is late.
Agreed Upon Procedures Engagements
We perform several “Agreed-Upon-Procedures” Engagements annually. An “Agreed-Upon-Procedures” engagement is one in which a practitioner is engaged by a client to issue a report of findings based on specific procedures performed on certain subject matter. These engagements are typically done for the following reasons:
- Due Dilligence Testing for Mergers or Aquisitions
- To Perform Specific Compliance Test Procedures Required by Funding Sources
- In Lieu of an Audit or Review (for small entities who have a change in Fiscal Officers)
Timeliness is critical when providing auditing and tax services. Deadlines are routine. Client service is our number one priority. We pride ourselves on our ability to meet all deadlines, and to “step up to the plate” and crunch the work out when special projects arise.
Typically an audit takes anywhere from 2-8 weeks to complete, depending on the size and complexity of the entity and the client response time to questions and requests for additional information. However, we make every effort to meet our clients’ timetables, even if it means working evenings, weekends and holidays.
Unlike many firms, audits of very small organizations do not sit on the back burner. These engagements are given as much attention as the larger ones. Audits of very small organizations are typically completed in 3 weeks or less.