irs form 2106 ez This is a topic that many people are looking for. newyorkcityvoices.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, newyorkcityvoices.org would like to introduce to you IRS Form 990-EZ Tutorial: Overview of the Form. Following along are instructions in the video below:
“To my series of video tutorials on how to prepare form 990 ez information return return for small tax exempt organizations. I m david mccree. I m a cpa and can find me on the web at my form 990 ez comm. This is a quick overview of form 990 ez.
This is a four page form. And it s divided into six parts. Plus. A header and a signature section.
The top is the header take care and filling out the header. It s a very important part of the document next down here and part one on page. One is the revenue section from lines one through line nine. This is where you re going to report all of the organization s revenues.
But note that there are several lines in here. Where you re going to also put in some expenses here you re going to have a cost basis for certain assets that are sold or you can have direct expenses from fundraising events and you re going to have cost of goods sold so the total revenue here on line nine on your form. 990 ez is not necessarily going to match your total revenue on quickbooks because of these reductions here then down below the revenue on page. One is a small section for expenses now in the 990 ez this is a fairly abbreviated expense presentation.
Compared to the full form 990 that s where the advantages to the ez. So this is where your expenses are going to go and keep in mind also that because you ve included some expenses up here in the revenue section your total expenses on the form 990 ez are not necessarily going to equal total expenses on your quickbooks or whatever accounting program you use or your spreadsheet or whatever then down here at the bottom. This is usually where people goof up this is the net assets section net assets or basically what s left over after you subtract your liabilities from your assets and i ll be doing another video on that to show what that is a detail would keep in mind that this is a touchy area..
And so let s move along to page. Two you have a simplified balance sheet up here on part two at the top of page two. And you always want to make sure that your beginning of the year balance sheet. Matches the end of the year balance sheet and the year before that s something that s often goofed up.
And if they re not the same. Then you need to investigate and find out why and maybe you need to make an adjustment part three down here. The statement of program service accomplishments. This is an area where you simply state what your programs are and the amount of expenses for each program.
This is an area where you can really portray to the public and to the irs. What your organization has accomplished and i usually like to just put see attached schedule and then on schedule. Oh right a significant amount of information about the programs. And how many people were served and so on and so forth let s see then down below that on page two still part four this is where you list officers directors trustees and key employees and you have to list them here whether they get paid or not okay.
And i see so many 1990s. They just have this blank you must fill this in you must fill in the information here even if they have zero compensation and if they are compensated of course. You need to to fill in that information page. Three.
This is an entire page of questions and the purpose of these questions is to figure out whether or not certain situations. Exist. That would cause you to need to fill out additional schedules and attach to the returned..
So that s the way that form is laid out now you ve got the what appears to be a simple four page form. But once you get into part five here. The the full return can quickly grow with additional schedule. So you want to fill that up very carefully and be careful the way you answer questions and they re also looking to see if maybe if maybe you ve done something you shouldn t be doing page.
Four. There s a section here for section 501 c. 3. Organizations.
Only they re asking you about lobbying. They re asking you about politics and then of course. They re asking you to disclose highly compensated officers and directors and also highly paid contractors then of course. There is the signature section and at the very end here is question number 52.
They re asking you if the organization completed schedule. A and it s reminding you that all section 501 c. 3. Organizations must attach a completed schedule a if you don t attach a schedule.
A and you re required to and as it says all 501 c. 3s are required to you will receive a demand for the schedule. And you will receive a penalty and so this is something you want to make sure that you attach the schedule..
A and schedule b are the two most common schedules to attach and i m going to very quickly show you what those are right now. So this is the schedule. A it s the public charity status and public support schedule. So you they re asking you here on page 1 of the schedule a to indicate why you re not a private foundation.
And then schedule a the supports part of this schedule. A there are actually two sections one is for charities that receive mostly contributions and they have one particular support test. And then organizations that get most of their income from programs service fees. They use part three of the schedule.
A and different section. So this is where you prove that you are indeed publicly supported by put it filling in your financial information. Your revenue items. So this is schedule b.
It s the schedule of contributors where you will be reporting contributions from large donors generally those that contributed 5000. Or more and you list your contributors is on page two and there s also an area to list contributions that are non cash property like if they give you a stock or something like that and that is schedule b. So. We ve looked at this the form 990 ez.
We ve looked at the schedule. A we ve looked at the schedule b. And there is one more schedule..
That is should always be attached. And that is schedule. O schedule. O.
Is simply a blank form. Where you add. Explanations or answer. Specific questions and elaborate on things that you were instructed to to do in the form 990 ez and there wasn t room on the form to do it so you put that on schedule.
O any type of explanations you know if you ve filed your return. Late or if there s something the irs needs to know about and there s no place to put it on the form that goes on a schedule o all form 990 ez z. Should have a schedule. Oh that s a quick overview of the form 990 ez.
Just to kind of give you the big picture of what you re dealing with and hopefully that will help you out good luck. Thanks for watching my video tutorial. If you need more help you can find me on the web at ” ..
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