Annual Tax Compliance Checklist -- §501(c)(3)s



Exhibit 19-1

ANNUAL Tax Compliance Checklist for §501(c)(3) ORGANIZATION

PUBLIC CHARITY

Organization __________

Prepared by Reviewed with Date________

A. Federal tax exemption matters

1. New organization: Has Form 1023 been filed within 15 (or 27) months after organizational date? ____________

2. Young organization (1-5 yrs): If advanced ruling received, when does form 8734 need to be filed? ____________

3. All organizations: Review Form 1023, IRS correspondence, and determi nation letter for exempt purposes

originally represented to IRS to verify category of exemption. Do current activities match original purposes? ____________

4. Has IRS examined or contacted the organization? If so, please forward any correspondence. ____________

5. Does the EO want to change its fiscal year or its accounting method for tax purposes? ____________

B. State and local taxes

1. Is the organization doing business or soliciting donations in any other states? ____________

2. Does organization need to file for exemption with any State? ____________

3. Does organization use proper form to claim exemptions it is entitled to? ____________

4. Must the EO collect sales tax on goods or services sold? Are timely returns filed? Is tax deposited on time? ____________

5. Does the organization pay real or personal property tax? ____________

a. Would use of property qualify it for exemption? ____________

b. For property classed as exempt, is it devoted to exempt use or has it been converted to commercial use? ____________

C. Charter and bylaws

1. Were there any changes to the charter or bylaws this year? If so, forward us a signed copy. ____________

2. Were there substantial changes in exempt activities or mission to report? If so, send description. ____________

3. Review the minutes of director's meetings to see if they reflect exempt purpose of the EO's activities? ____________

D. Private Inurement or Benefit

1. Does the EO make any payments or provide benefits to persons that control, manage, or fund it? ____________

2. Is compensation paid to personnel (both employees and independent contractors) reasonable? ____________

If total comp of >$90,000 per individual is paid, contact us to compete Intermediate Sanction Checklist. ____________

3. Are loans made to or from officers or directors? If so, gather details and consider reasonableness. ____________

4. Does the organization benefit a broad charitable class or a limited number of persons? ____________

E. Exempt Activities

1. Do activities further the purposes for which EO was determined to be exempt? See Form 1023. ____________

2. Are files maintained to document or provide an archive of the nature of activities? ____________

3. Does the EO have a record retention policy? ____________

4. Does the organization lobby? If so, provide report including expenditures. ____________

5. Has the organization participated in any political campaigns? Review newsletters for mention of candidates/issues.___________

6. Does EO have unrelated business income? If so, please contact us to complete UBI Checklist. ____________

7. Does the EO make payments for personal services it receives? If so,

a. Does the EO have a policy for distinguishing between employees and contractors? ____________

b. Are Forms W-9 on file for persons not treated as employees? Are Forms 1099 filed? ____________

c. Must TWC reports and tax be paid (EO has 4 or more employees)? (No Federal tax is due!) ____________

d. Are payroll tax reports filed and taxes deposited in a timely fashion? ____________

8. Must Forms 5500 be filed for employee benefit plans? Are limitations on maximum employee

contributions adhered to? ____________

9. Does your organization have a website? If so, please contact us to complete Website Checklist. ____________

G. Property Contributions

1. Has the organization received gifts of property (other than listed securities)? ____________

2. Were there any sales of $5,000+ donated property made within two years from date of gift? ____________

H. Validity of Financial Information

1. Has a compilation, review, or audit checklist been completed to insure proper financial reporting and

adherence to accounting principles? ____________

2. Should an amended return be filed to reflect re-statement of prior year(s)? ____________

K. Publicly Supported Organizations

1. If financial statements are accrual, prepare revenue report on cash basis. ____________

2. Does EO maintain a cumulative database of substantial contributors (donate >2% of annual gifts)? ____________

3. Is fund raising conducted in a state that requires reports or regitration? ____________

4. Do fundraising solicitations reflect fair market value (FMV) of benefits offered to donors in return for gifts? ____________

5. For +$75 payments, is value of goods & services provided on solicitation or receipts? ____________

6. Do donor thank-you letters reflect statement of goods & services were(or were not) provided for >$250 donors? ____________

7. Is the method for calculation for FMV of benefits provided to donors reasonable and documented? ____________

8. Has EO furnished copies of Forms 990 and 1023 to members of public requesting to see or buy them? ____________

9. Are expense allocations and shared expenses with related §501(c)(4), (c)(5), or (c)(6)s documented? ____________

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download