The knowledge of how the Internal Revenue Code treats business activities and how the different organizational forms are recognized as reporting entities are basic elements of taxation. a.)What organizational forms are required to comply with filing and reporting to the IRS, and how they are different? b.)How do GAAP and tax accounting differ? URGENT: NEED ANSWER ASAP PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT USE ORIGINAL CONTENT NOT USED BEFORE ON CHEGG PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES ORIGINAL SOURCE NEVER USED BEFORE!!! Solution a.) Most charitable nonprofits that are recognized as tax-exempt have an obligation to file an annual information return with the IRS. (There are very few exceptions: church-affiliated organizations and governmental organizations are among those not required to file.) The IRS Form 990 is a public document, so make sure that your nonprofit\'s board reviews it before it\'s filed, and that it is completed thoughtfully as well as accurately. If a nonprofit is incorporated in a state but has never been recognized by the IRS as “tax-exempt,” then it does not have an obligation to file an annual information return with the IRS. Note: Conversely, even if your organization fits one of the few exceptions to mandatory annual filing with the IRS, it may still have to file forms annually in the state where it is incorporated, or where it engages in fundraising activities. See information on required state filings. Most small tax-exempt organizations with gross receipts that are normally $50,000 or less must file the IRS form 990-N, known as the \"e-postcard\". Exceptions to this filing requirement include: · Organizations that are included in a group return, · Churches, their integrated auxiliaries, and conventions or associations of churches, and · Organizations required to file a different return b.)Difference in GAAP and Tax Accounting is stated below: Particulars GAAP Tax Accounting Purpose The purpose of GAAP is to provide a standard set of guidelines and accounting principles in order to bring uniformity and relevance as it increases the reliability and comparability of financial statements. The tax accounting framework is developed and maintained by the Internal Revenue Service or IRS, and the purpose of this framework is to impose tax against taxable income or net earnings of the business. Taxable income is not the same as revenue (as defined by GAAP). The tax is deducted and collected in the earlier of receipt of cash, or earning. Basis of Accounting In the GAAP accounting, accrual based accounting is the only acceptable method. The cost of developing, implementing and using the GAAP accounting system is sometimes too much for small scale businesses; therefore, the IRS allows such businesses to record their financial transactions using alternative methods. In the Tax accounting uses accrual, cash and modified basis of accounting. Depreciation Recognition Under the GAAP accounting, differe.

1. The knowledge of how the Internal Revenue Code treats business activities and how the different
organizational forms are recognized as reporting entities are basic elements of taxation.
a.)What organizational forms are required to comply with filing and reporting to the IRS, and
how they are different?
b.)How do GAAP and tax accounting differ?
URGENT: NEED ANSWER ASAP
PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT USE ORIGINAL
CONTENT NOT USED BEFORE ON CHEGG
PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES ORIGINAL
SOURCE NEVER USED BEFORE!!!
Solution
a.)
Most charitable nonprofits that are recognized as tax-exempt have an obligation to file an annual
information return with the IRS. (There are very few exceptions: church-affiliated organizations
and governmental organizations are among those not required to file.) The IRS Form 990 is a
public document, so make sure that your nonprofit's board reviews it before it's filed, and that it
is completed thoughtfully as well as accurately. If a nonprofit is incorporated in a state but has
never been recognized by the IRS as “tax-exempt,” then it does not have an obligation to file an
annual information return with the IRS.
Note: Conversely, even if your organization fits one of the few exceptions to mandatory annual
filing with the IRS, it may still have to file forms annually in the state where it is incorporated, or
where it engages in fundraising activities. See information on required state filings.
Most small tax-exempt organizations with gross receipts that are normally $50,000 or less must
file the IRS form 990-N, known as the "e-postcard".
Exceptions to this filing requirement include:
· Organizations that are included in a group return,
· Churches, their integrated auxiliaries, and conventions or associations of churches, and
· Organizations required to file a different return
b.)Difference in GAAP and Tax Accounting is stated below:
Particulars
GAAP
Tax Accounting

2. Purpose
The purpose of GAAP is to provide a standard set of guidelines and accounting principles in
order to bring uniformity and relevance as it increases the reliability and comparability of
financial statements.
The tax accounting framework is developed and maintained by the Internal Revenue Service or
IRS, and the purpose of this framework is to impose tax against taxable income or net earnings
of the business.
Taxable income is not the same as revenue (as defined by GAAP). The tax is deducted and
collected in the earlier of receipt of cash, or earning.
Basis of Accounting
In the GAAP accounting, accrual based accounting is the only acceptable method.
The cost of developing, implementing and using the GAAP accounting system is sometimes too
much for small scale businesses; therefore, the IRS allows such businesses to record their
financial transactions using alternative methods.
In the Tax accounting uses accrual, cash and modified basis of accounting.
Depreciation Recognition
Under the GAAP accounting, different accounting methods are used, such as, reducing or
declining balance method, straight line method, the sum of the year digit method, and activity-
based depreciation method.
In the tax accounting, Modified Accelerated Cost Recovery System or MARCS is used, which
calculates the depreciation by using IRS defined declining percentages. In addition to this,
according to the section 179, the IRS allows individuals and taxpayers to expense depreciation
on the fixed asset in the year of purchase.
Accounting for Accruals
Under the GAAP accounting system, the expenses, which are due but not yet paid, are
considered as accruals in the balance sheet. It is represented as an accrual of the expense, which

3. is a current liability that is due to be paid on the later date.
in a tax accounting, accrual based accounting is not required unless a company report its business
tax returns as an accrual based tax payer. Moreover, the IRS enforces certain limitations for cash
and modified basis accounting, which includes income and expense reporting limitation, and also
includes the revenue limitations.
Particulars
GAAP
Tax Accounting
Purpose
The purpose of GAAP is to provide a standard set of guidelines and accounting principles in
order to bring uniformity and relevance as it increases the reliability and comparability of
financial statements.
The tax accounting framework is developed and maintained by the Internal Revenue Service or
IRS, and the purpose of this framework is to impose tax against taxable income or net earnings
of the business.
Taxable income is not the same as revenue (as defined by GAAP). The tax is deducted and
collected in the earlier of receipt of cash, or earning.
Basis of Accounting
In the GAAP accounting, accrual based accounting is the only acceptable method.
The cost of developing, implementing and using the GAAP accounting system is sometimes too
much for small scale businesses; therefore, the IRS allows such businesses to record their
financial transactions using alternative methods.
In the Tax accounting uses accrual, cash and modified basis of accounting.
Depreciation Recognition
Under the GAAP accounting, different accounting methods are used, such as, reducing or
declining balance method, straight line method, the sum of the year digit method, and activity-

4. based depreciation method.
In the tax accounting, Modified Accelerated Cost Recovery System or MARCS is used, which
calculates the depreciation by using IRS defined declining percentages. In addition to this,
according to the section 179, the IRS allows individuals and taxpayers to expense depreciation
on the fixed asset in the year of purchase.
Accounting for Accruals
Under the GAAP accounting system, the expenses, which are due but not yet paid, are
considered as accruals in the balance sheet. It is represented as an accrual of the expense, which
is a current liability that is due to be paid on the later date.
in a tax accounting, accrual based accounting is not required unless a company report its
business tax returns as an accrual based tax payer. Moreover, the IRS enforces certain
limitations for cash and modified basis accounting, which includes income and expense
reporting limitation, and also includes the revenue limitations.