Nonprofit

[ILLMAS]

Ok I have a new nonprofit client that came to me because they received a letter claiming they haven't filed AG-990 for the state of IL. NP has been working under a fiscal agent for quite some time already and in 2008 the applied to be a 501 c3 and didn't get approved until March of 2009. I have worked with a couple of NP in the past that become fiscal agents for other agencies not yet approved by the IRS, and usually they manage and report the agencies monies on their financial statements, audited financial statements and tax return. They usually report their assets and liabilities only, but with this NP client it seems they were operating on their own, they had their books and accounting, the fiscal agent only received monies from foundations under their name, then they would give a check to them. NP director inherited all this mess and no one is able to confirm if anything was reported under the fiscal agent books/tax return. So I just want to inform the client that if nothing was reported by the fiscal agent, they would have to report it, but I am not sure if I need to report the years (without 501 c3) on form 1120, since they didn't get approved until 2009?

Thanks

[Wayne Brasch]

Ok I have a new nonprofit client that came to me because they received a letter claiming they haven't filed AG-990 for the state of IL. NP has been working under a fiscal agent for quite some time already and in 2008 the applied to be a 501 c3 and didn't get approved until March of 2009. I have worked with a couple of NP in the past that become fiscal agents for other agencies not yet approved by the IRS, and usually they manage and report the agencies monies on their financial statements, audited financial statements and tax return. They usually report their assets and liabilities only, but with this NP client it seems they were operating on their own, they had their books and accounting, the fiscal agent only received monies from foundations under their name, then they would give a check to them. NP director inherited all this mess and no one is able to confirm if anything was reported under the fiscal agent books/tax return. So I just want to inform the client that if nothing was reported by the fiscal agent, they would have to report it, but I am not sure if I need to report the years (without 501 c3) on form 1120, since they didn't get approved until 2009?

Thanks

My thought would be not to complicate the matter any more than it already is. File the return on a Form 990.

Wayne Brasch