Introduction: Information on the 990 Informational Tax Return is the basis for IRS scrutiny in meeting its responsibility to allow exemption from income tax. Therefore, careful preparation of the form is very important. Read Dzamba’s 2001 monograph about the 26 Red Flags to get an understanding of what his highlighted concerns were before the 2008 revision. (attached) Page 1: Summarize key points Dzamba emphasized for NPOs in his monograph. How did he suggest the Form 990 reflected the IRS’ intent to have transparency of tax-exempt organizations’ financial affairs, governance practices, and procedures? Pages 2-4: a) Are there any NEW RED FLAGS you find on the Revised Form 990 for nonprofit organizations. These can be interpreted from an organization’s perspective or from a personal perspective. [If personal, it needs to be reflected in, and point to, the organization’s management & financial practices that you reference.] b) What is (are) the biggest NEW RED FLAG impact(s) of the Revised Form 990 [personal, organizational, community-wide, sector-wide, industry-specific]? Your responses to these two questions (parts a and b) should be based on the examination of an actual organization’s Form 990 (see attached)Show more
