IRS Developed a Case Study for Form 990 to Assist In Preparing the Form

The IRS has come out with a sample Form 990 case study on their website to assist people in preparing the new form with sample Schedules A and O .

Please see this link to access :

http://www.irs.gov/pub/irs-tege/samplecompletedform990casestudy.pdf

HOW TO KILL A FLY WITH A THERMONUCLEAR WEAPON – OR IN OTHER WORDS, HEALTH CARE REFORM AND IRS FORM 1099

Form 1099 is CURRENTLY required to be sent to the IRS and a SOLE PROPRIETOR OR PARTNERSHIP if a business pays one of these entities over $600 during a calendar year for SERVICES.  This rule may soon change if Congress has its way.  Both the House and the Senate believe that unreported income can be collected by expanding these reporting requirements and this additional income can be used to help pay some of the costs of health care reform.

Under proposed legislation, all businesses will need to send a Form 1099 to ALL other businesses – sole proprietors, partnerships and CORPORATIONS – that they pay over $600 to in a calendar year.  This includes services and PRODUCTS!!

Just think of all the businesses where we spend money.  If a taxpayer is a manufacturer or a retail store, how many corporation vendors do they have?  They will have to send each one a Form 1099.  Continue reading »

403(b) Plan Sponsors Finally Focused on New Requirements

Nonprofit organizations and the practicing community have been diligently working on the changes that represent the new world of 403(b) plans. Plan document requirements, rules clarifications, fiduciary considerations and reporting enhancements are all part this new environment.

Aronson & Company has been working to educate its clients and associates in an effort to make this transition as smooth as possible. We have developed the “403(b) Plan Resources Page” at http://www.aronsoncompany.com/EBP/403b.asp for this purpose.

If you should have any questions or need additional information, please contact Mark Flanagan of the Benefit Plan Services Group at 301-231-6257.

Non-profits and the Red Flags Rules for Credit Cards

Non-profit organizations that accept credit cards as payments for services or registrations have been inquiring as to whether or not the Red Flag Rules to protect credit card users apply to them.

The Red Flags Rules – created by the Federal Trade Commission, were originally intended to go into effect November 1, 2008. The enforcement has been delayed until June 1, 2010.  The Rules are designed to push creditors and financial institutions to protect consumers from identity theft by instituting written procedures and policies that would address consumer credit card vulnerabilities. The Red Flags are warning signs that indicate suspicious activity that if identified in advance and addressed could reduce the risks of identity theft.

Do the Red Flag Rules apply to non-profit organizations? Yes – BUT – only if that organization fits the definition of a creditor or is functioning like a financial institution. Continue reading »

Defined Benefit Plan Considerations

Non-Profits and Associations are one of the few industries where defined benefit plans still exist and as everyone knows DB plans are struggling these days.  The lackluster stock market performance of  the last decade has left most plans in an underfunded situation and many organizations have frozen future benefit accruals either permanently or for a period of time.  Obviously “how are we going to fund the plan”  and “what should we do in the future” are the overriding concerns, but we have also seen some accounting issues arise from incomplete communications between the organizations and their actuaries. Continue reading »

HARD TIMES FOR THE ANNUAL TRADE SHOW; WAYS OF KEEPING IT ATTRACTIVE

The Washington Post reported today on the lengths nonprofit meeting planners are going to in order to drum up interest for their annual meetings or trade shows in a very challenging economy.  At a time when all businesses are tightening their belts, nonprofits have to go the extra mile to interest attendees in traveling to meetings by convincing them the networking opportunities are worthwhile or the exchange of information is critical.  Also, squeezing the best deals from hotels and meeting places is essential so members or attendees can afford to come. http://www.washingtonpost.com/.  Continue reading »

SOME BANKS NO LONGER ACCEPTING FORM 8109

Many businesses are required to make tax payments using the Electronic Federal Tax Payment System (“EFTPS”).  However, some small businesses may still use Form 8109 (Federal Tax Deposit Coupon) to make tax payments through their bank.  Some banks, e.g., Bank of America, no longer accept Form 8109.  Affected taxpayers will have to either switch banks or use EFTPS.

Taxpayers can sign up for EFTPS at www.eftps.gov.  Note that it can take 15 days from the date of application for EFTPS to get a PIN and password in the mail.  Also note that EFTPS payments must be made the day before they are due or they will be late.

IRS ANNOUNCES NEW RETIREMENT PLAN LIMITS FOR 2010 PLAN YEARS

The Internal Revenue Service recently announced the 2010 cost of living adjustments for retirement plan limits.  The limits generally remain unchanged.

For additional cost of living adjustments, go to http://www.irs.gov/newsroom/article/0,,id=214321,00.html.

If you should have any questions, please feel free to contact Mark E. Flanagan of Aronson & Company’s Benefit Plan Services Group at 301-231-6257.

CONVICTED FELON RECEIVES OVER $2 MILLION FROM DC DEPARTMENT FOR WORK INVOLVING AWARDS TO NONPROFITS

The Washington Post has recently run several articles about apparent misuse of government funds through the D.C. Health Department HIV/AIDS Administration.  In a two part series, the Post has focused on the millions of dollars the city has awarded in recent years to nonprofit organizations to help the AIDS community, only to find many of these nonprofits could not account for their spending or supposed services provided to AIDS victims.  Now the Post is focusing higher up the responsibility chain, with consultants the city paid to help advise and direct the program and where the millions of dollars were to be awarded.  One year after being convicted in federal court for her involvement in a local mortgage fraud scheme, according to an article in the Post on November 1, 2009, Beale Inc., headed by Robin Beale, won a million dollar consulting contract.  According to the Post, more than $2 million was paid to this company headed by a convicted felon over three years.   The D.C. Health Department HIV/AIDS Administration has severed ties with the company as of last March, and is now pursuing more information to find out what happened to all of the money.  Continue reading »

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