Coming Your Way, Changes to the 2012 Form 990 and 990-EZ

by Jeff Curiel, CPA and Amanda Meko, CPA | Team Members of the Not-for-Profit Services Group

The 990 provides not-for-profit organizations with a tremendous opportunity to tell their story as the form is required to be made available to the public. While many organizations make the form available on their website, GuideStar.org publishes the last three years of the form for most organizations. Taking the time to properly understand the form’s requirements and pending changes can help your organization present itself favorably and accurately and avoid some of those tax reporting headaches down the road.

During February 2013, the IRS released changes effective for the 2012 Form 990. While these changes are not as substantial as those that occurred in 2008, the changes are still important to note as additional information may be required for your upcoming return. Highlighted below are some of the key changes to the 2012 990 and 990-EZ.

• Part VI: Filers that obtain audited financial statements will now be asked to complete Schedule D, Parts XI and XII. They will no longer be asked to complete Part XIII of Schedule D.
• Part VII: The average hours per week will now include the hours worked for related organizations.
• Part VIII: Filers may now report their share of revenue from joint ventures according to the presentation within their books/records, rather than Schedule K-1
• Part XI: Includes new lines for net unrealized gain (losses) on investments, donated services and use of facilities, investment expenses, and prior period adjustments.
• Schedule L: Transactions with interested persons now includes columns to explain the reason for a loan, grant or other assistance provided to an interested person.
• Glossary: The definition of ‘professional fundraising services’ includes preparation of applications for grants or other assistance.

The full summary of changes is located via the IRS website. As always, please feel free to contact Greenwalt CPAs with any of your questions.

Contact:

Jeff Curiel, CPA | Manager, Audit & Other Assurance Services Group and Team Member of the Not-for-Profit Services Group | 317.260.4414 | jcuriel@greenwaltcpas.com

Amanda Meko, CPA | Partner, Director, Audit & Other Assurance Services Group and Team Leader of the Not-for-Profit Services Group | 317.260.4436 | ameko@greenwaltcpas.com