Anyone interested in helping out with my first 990?

[BulldogTom]

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

 

[schirallicpa]

Are they expecting income to remain below 50K?

 

[BulldogTom]

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. 

[BulldogTom]

I read something about needing a special ERO account to file a 990 series form.   Is that correct?

Tom
Longview, TX

[GLJEANNE]

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.

 

[BulldogTom]

Should I just start with the 990 EZ?   So that I am used to it when 2025 comes around?

Tom
Longview, TX

[DANRVAN]

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.

 

[Lynn EA USTCP in Louisiana]

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

[Randall]

Whew!  I stopped doing 990s years ago.  Recently turned down a request from a nonprofit 990.

[GLJEANNE]

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.

 

[Catherine]

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.