99 Lonb"vatcr Circle. Suite 200. Norwell . MA 02061    Malloy, Lynch, Bienvenue, LLP                                      ...
The Non-Profit Toolbox              Half-Day Mini -Conference                         Recent Tax Changes        Malloy, Ly...
The Non-Profit Toolbox  Timothy S. Bell, CPA, CVA                          tbell@mlbcpa.net  Malloy, Lynch, Bienvenue, LLP...
Recent Tax Changes                          • Massachusetts Form PC Filing Changes                          • IRA Charitab...
MA Form PC Filing Changes               Requirement to File Form 990 or Form 990 EZ                      Effective for lis...
IRA Charitable Rollover                              • The maximum total exclusion per donor is $100,000                  ...
Whats FIN 48 got to do with Form 990                  FASB Interpretation No. 48, Accounting for Uncertainty in           ...
Whats FIN 48 got to do with Form 990               In summary:                     • If your organization has compiled, re...
Small Employer Health Insurance Credit                            Excluded Employees                                   Lea...
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Accounting for NPOs - Tim Bell

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Timothy Bell COA of Malloy, Lynch, Bienvenue, LLP talks about recent tax changes for Nonprofit Organizations in Massachusetts

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Accounting for NPOs - Tim Bell

  1. 1. 99 Lonb"vatcr Circle. Suite 200. Norwell . MA 02061 Malloy, Lynch, Bienvenue, LLP Telephone (78 1) 871 -5850 Fax (78 1) 87 1-5840 Certified Public Accountants & Advisors 9 Baystatc COtlrt, Brewster, MA 0263 1 Te lephone (508) 255-2240 Fax (508) 255 -235 1 Intcmcl: www. mlbcpa.nct Malloy, Lynch, Bienvenue, LLP is a loca l finn with offices in Norwell and Brewster,Massachusetts providing quality, professional and timely service to clients in Massachusetts forover thirty years. We have substantial experience working with governmental, commercial , andnon-profit entities, including performance of Single Audits, providing specialized tax services tonon-profit entities, compiling Uniform Financial Reports, performing special engagements suchas closing of ledgers, forensic examinations, internal control and departmental reviews anddesigning indirect cost allocation plans, to list some of our work. We offer highly qualifiedauditing professionals among our principals and staff that will provide a continuity of service too ur clients over the years and who are always available to respond to and assist you as needed. Our firm is a member of the American Institute of Certified Public AccountantsGovernment Audit Quality Center, which demonstrates our commitment to audit quality ofgovernmental audits, including single audits, and financial statement audits, of both governmentand not-for-profit organizations. As members of the audit quality center we are required tomaintain an extensive internal system of quality review and also participate in an external reviewprogram. Our firm has been reviewed under the American Institute of Certified PublicAccountants Quality Review Program and received an unqualified "(clean)" opinion. The following is an overview of our non-profit/municipal services: MLB has a thriving and dynamic municipal and non-profit accounting, auditing andconsulting practice. Our continued success in the public sector has been a direct result ofdelivering results and of delivering our services in an efficient and cost effective manner utilizingthe following core values:Experience and Knowledge - our principals and staff are among the most knowledgeable publicsector accountants and advisors around. Our knowledge base goes back to the beginnin g ofprivate municipal auditing in Massachusetts and is continuously updated through ongoingtraining and engagements. This knowledge is supported by dozens of years of experience inapplying o ur knowledge and craft.Team approach - MLB utilizes a team approach to completing engagements resulting in acontinuity of service, diverse experience and efficient and timely service. Our engagement teamsare readily available to assist our clients as needed throughout the year.Partner participation - A firm principal is significantly involved in every engagement providingaccessibility and availability with firm decisi on makers, enhanced quality of work, and timelyresolution of questions and issues that arise.Quality and process - MLB delivers the highest quality service around. Our engagements arethorough and comprehensive. All reports, findings and comments are well supported, sourcedand deliver value to your organization. To achieve this, MLB utilizes superior engagement andmanagement procedures, including proprietary practice aides for municipal and non-profitorganizations. Our engagement process has been built and perfected over the years based uponour experience and is continuously re-engineered to ensure the latest emerging issues and bestpractices are considered - before you need to know them.
  2. 2. The Non-Profit Toolbox Half-Day Mini -Conference Recent Tax Changes Malloy, Lynch, Bienvenue, LLP_ • Certified Public Accountants & Advisors
  3. 3. The Non-Profit Toolbox Timothy S. Bell, CPA, CVA tbell@mlbcpa.net Malloy, Lynch, Bienvenue, LLP www.mlbcpa.net9 Baystate Court 99 Longwater Circle, Suite 200Brewster, MA 02631 Norwell, MA 02061Phone (508) 255-2240 Phone (781) 871-5850Fax (508) 255-2351 Fax (781) 871-5840 Malloy, Lynch, Bienvenue, LLP Certified Public AccountanL & Advisors ,
  4. 4. Recent Tax Changes • Massachusetts Form PC Filing Changes • IRA Charitable Rollover • Whats FIN 48 got to do with Form 9907 • Small Employer Health Insurance Credit II1II Mulloy. Lvnch, meDvcnu~. LLI The Non~Pront Toolbox - Recent Tax Changes IIIIIiiI C~rf(/i~d lut//l Ar ,"()umtlllU " 11th/Mrs "WW,IIII.oCp.JICI Prescll1ell by Timothy Bell , CPA, eVA MA Fonn PC Filing Changes Annual Filing Fee ~!.~ !:!!I(lPQ~"<!.!IdJ~!!,!~~ew Fe!t l OliiFees " Less than $100,000 $35 $35 $100,001 to $250,000 $70 $70 $250,001 to $500,000 $125 $125 $500,001 to $1 million $250 $250 $1,000,001 to $10 million $500 N/A $10,000,001 to $100 million $1,000 N/A Over $100 million $2,000 N/A Fees changed only for organizations with gross support and revenue over $1 million _ Malloy, Lynrh. lJI"n venut, 1.1 .1 The Non-Profit Toolbox - Recent Tax Changes IIIIIiiI Cenifl...t ../Jlle.1n:........"I1.< doAmi.jlOu " _.IIIlbelll .u d Presented by Timothy Be!1. CPA, eVAI I I I ! I Malloy, Lynch, Bienvenue, LLPI I I i I I Certijled Public Accountants & Advisors 1
  5. 5. MA Form PC Filing Changes Requirement to File Form 990 or Form 990 EZ Effective for liscal years ending on or after 12/3111 0 organizations with gross support and revenue with $5,000 or less will be exempt from filing Form 990 or Form 990 EZ Initial Registration Requirements On or after III / II public charities reg istering for the first time must submit a $ 100 one-ti me initial registration fee The NOll-Profit Toolbox - Recent Tax Changes Presented by Timolhy Bell, CPA, eVA ) IRA Charitable Rollover • Allows donors over age 70 y, to exc lude from taxable income any IRA funds up to $ I 00 ,000 that have been withdrawn and transfened to a charity • The IRA Charitable Rollover is extended through December 31,2011 The donor may elect the treat any qualified IRA Charitable Rollover made in January 2011 to be treated as made in 2010 fI!IIIIII M:llIgy. Lynch, lJi~lI~rl1ue, LLP T he Non-Profit Toolbox - Recen t Tllx Chllngcs IIi6IiiI C.mifinJww..... "«ow"I..",.. &< Ad.lsorJ Public ,nolbcpiUlCl Presented by Timothy [Jel l. CPA. CV 1Malloy, Lynch, Bienvenue, LLPCertified Public Accountants & Advisors 2
  6. 6. IRA Charitable Rollover • The maximum total exclusion per donor is $100,000 Qualified IRA Charitable Rollover contribution must be made directly by trustee of the IRA • An acknowledgement of the contribution is needed to claim income exclusion (similar to charitable deduction) I11III Molloy, LYIICh, Oirn,clIu,·, LLP The NOllwProrit Toolbox - Recent Tax Changes IiIiIiI CUlifkrll~iJlj; Ic~III(JJU . www.ml~<1.ancl & ,1t1rf,r;cu Presented by Timothy Bell, CPA, eVA Whats FIN 48 got to do with FOTIn 990 Page 3,Part IV, Checklist of Required Schedules • The organization reported other liabilities • Financial statements are prepared I11III Mnlloy, L.ynch, OiCtncnI.,e, LLI "fhe Non-Protit Toolbox - Recent Tax Changes IiIIiiI C~rT(/I~rl Publlr lluOUIIIlJl!l5 &.-I(M,,,,,", www,",I~ c)J"J)CI Presented by Timothy Bell, CPA, eVA G_ Malloy, Lynch, Bienvenue, LLPIIIII!Ii Certijied Public Accountants & Advisors 3
  7. 7. Whats FIN 48 got to do with Form 990 FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes: An Interpretation of FASB Statement No. 109 (ASe 740) • Purpose: To prov ide guidance and clari fi cation regarding the evalu ation of unccr1ain tax positions and calculation and disclosure of reserves for uncertain tax positions • Result : For non-profit entities more confusion II1II Malloy, Ly n~h, Dillnvellu~. LLP The Non·Profi l Toolbox - Reccnl fax Changes IIiIiI C"rll/vri"_.I11II.o1ul( A.MJtJu 1,Jllk.~ r"""1J If Prc~ented by Timothy Dell, CPA. eVA Whats FIN 48 got to do with Form 990 What are some concerns regarding Uncertain Tax Positions? • Revocation of exempt status • Net earnings inures to an individual • Unrelated Business Income Tax (Form 990-T) • Extended Fund Raising Activity or Event • Substantial Lobbying Par1icipate or intervene in any political campaign The Non-Profit Toolbox - Recent Ta.x Changt!s Presented by Ti lll o lh y Be ll , CPA, eVA , " UIJUY, Lynch, Bienvenue, LLPo:.l CertilJRdPublic Accountants & Advisors 4
  8. 8. Whats FIN 48 got to do with Form 990 In summary: • If your organization has compiled, reviewed or audited financial statements, it shou ld have a disclosure that it has evaluated its tax positions and whether or not there is a need for income tax provIsIOn Jhc Non-Prolit Too lbox - Half-DRY Mini-ConlCrence Recent Tux Cilangcs - Presented March 22 , 2011 • Small Employer Health Insurance Credit Eligibility_Rules Empl oyer must cover at least 50% of the cost of health care coverage Employer must have less than the equivalent of25 full-time workers Average annual wages must be less than $50,000 Amount of Credit Up to 25% of th e cost of health care premiums On 1/ 1/ 14 th e credit rate increases to 35% There are Limitations " " " Mnlloy, J.yn~h, nIE n~·~nu~. LLI The Non-ProJit loolbox - II<lIf-Oay Mini -Conferenec ~ Cer1(/!~rlPuMkA <=U"fanfs& ltd.,su"" wWIV ,IIIIlJ.q)IJ.<1 Recent Tax Challges - Prcsenled Mfln;h 22. 20 I 1 10M,all.,y. Lynch, Bienvenue, LLPCe,r ljfiedPublic Accountants & Advisors 5
  9. 9. Small Employer Health Insurance Credit Excluded Employees Leased Employees Seasonal Emplo yees How to Calculate and Claim Credit Calculated on Form 894 I Claimed on Fonn 990- T The Non-Profit Toolbox - Recent Tax Changes Presented by Timothy Bell, CPA, CV A " Recent Tax Changes QUESTIONS / DISCUSSION Massac husetts Form PC Filing Changes • IRA Charitable Rollover Whats "IN 48 got to do with Form 990? • Small Employer Health Insurance Credit " " " Mulloy. Lynch, Oi~n"ou".I.LP The Non-Profit Toolbox - Ret:ent Tax Changes IMIiIiI CrI~1...........lnlb•..,.lIn /1 ,10-/"""1 ,..ufc.tcc"""QnI," Presented by Tirnothy Oell. C PA. CVA "I I I I ! I Malloy, Lynch, Bienvenue, LLPIIIiII Certified Public Accountant,l & Advisors 6

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