2014 Form 990

Posted on Wednesday, November 19, 2014

The IRS recently posted the 2014 Form 990 to its website.  There are no changes to the form itself; however, there are a few changes to the instructions which are still in draft form.

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

Instructions clarify that reportable compensation should not be treated as deferred if deferred from the calendar year ending with or within the tax year to a date that is not more than 2 ½ months after the end of the calendar year ending with or within the tax year.

Part XI, Reconciliation of Net Assets

New instructions are provided for lines 5, 6 and 8 which did not have any instructions previously. 

Line 5.  Report the unrealized gains or losses on investments reported in the organization’s audited financial statements (or other financial statements).  This amount represents the change in market value of investments that were not sold or exchanged during the tax year.

Line 6.  Report the value of services or use of facilities donated to the organization (net of services or use of facilities donated by the organization) reported as income or expense in the financial statements.

Line 8.  Report the net prior period adjustments during the tax year reported in the financial statements.  Prior period adjustments are corrections of errors in financial statements of prior years, or changes in accounting principles applied to such years.  The errors may include math errors, mistakes in applying accounting principles, or oversight or misuse of facts that existed at the time the financial statements were prepared.

Appendix E, Group Returns – Reporting Information on Behalf of the Group

New instructions are provided for group returns with section 509(a)(3) supporting organizations.  Specifically instructions for Schedule A (Form 990 or 990-EZ), Parts IV through VI were added.

Posted by: Carrie Minnich, CPA

Posted in Mission Minded Nonprofits

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