990 Review: Focus on Part VII and Schedule J. Pat Cooper, CPA Jackson Thornton

Transcription

1 990 Review: Focus on Part VII and Schedule J Pat Cooper, CPA Jackson Thornton

2 Overview

3 Part VII Requirements on who should be reported on Part VII Requirements on what information should be provided for each individual listed on Part VII

4 Schedule J Requirements on who should be reported on Schedule J Requirements on what information should be provided for each individual listed on Schedule J

5 Part VII Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensation Employees, and Independent Contractors

6 Part VII Section A Officers Directors/Trustees Key Employees Highest Compensated Employees Former Directors or Employees

7 Part VII Section A Name and Title Average Hours Per Week Position Reportable Compensation from Organization Reportable Compensation from Related Organizations Estimated amount of other compensation from the organization and related organizations

8 Part VII Section A Total number of individuals receiving more than $100,000 in reportable compensation Former listed on Part VII?(report on schedule J) Sum of reportable and other compensation greater than $150,000?(report on schedule J) Receive or accrue compensation for services rendered to the organization (report on schedule J)

9 Part VII Section B Independent contractors receiving more than $100,000 during the tax year Name and address Description of services Compensation Total number

10 Schedule J Compensation Information

11 Schedule J Part I Questions regarding certain items - First-class or travel charter - Travel for companions - Tax indemnification and gross-up payments - Discretionary spending account - Housing allowance or residence for personal use - Payments for business use of personal residence - Health or social club dues or initiation fees - Personal services

12 Schedule J Part I Establishing compensation of CEO - Compensation committee - Independent compensation consultant - Form 990 of other organizations - Written employment contract - Compensation survey or study - Approval by the board or compensation committee

13 Schedule J Part II Name and Title Breakdown of reportable compensation - Base compensation - Bonus and incentive compensation - Other reportable compensation Retirement and other deferred compensation Nontaxable benefits Total compensation Compensation that has been reported as deferred on a prior Form 990

14 Common Mistakes

15 Common Mistakes Not listing officers correctly Listing key employees incorrectly Not reporting other compensation Reporting officers as highest compensated also Reported highest compensated even if compensation is less than $100,000 Listing a current officer/director as a former Reporting independent contractors amounts as goods and services rather than just services

16 Thank You! Pat Cooper, CPA Senior Manager

17 Disclaimer The information contained herein is general in nature and based on authorities that are subject to change. Jackson Thornton guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. Jackson Thornton assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. Circular 230 Disclosure This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer. Jackson Thornton 200 Commerce Street Montgomery, Alabama

18 Jackson Thornton 200 Commerce Street Montgomery, Alabama