Tips on Reporting Other IRS Filings and Tax Compliance

Within IRS 990 and 990-EZ forms, there is a section where tax-exempt organizations can report specific types of other IRS filings and tax compliance information.

Not every question from this section may apply to your exempt group, but if it is applicable, make sure your answers are as accurate as possible.

Here are a few tips on properly reporting information for a few sections regarding any other IRS filings or tax compliance applicable to your organization.

Form 1099 or Form W-2G Tax Returns
Indicate whether your organization filed any 1099, W2 or W-2G forms for the current tax year and the total number of returns reported if applicable. If your organization listed any gambling winnings, enter the number of IRS Form W-2Gs that you filed. You can also file w2 forms electronically, and file 1099 Forms electronically with our sister product ExpressTaxFilings.

Mark if your tax-exempt group was compliant with any backup withholding rules for reportable payments to vendors and reportable gaming or gambling winnings to prize winners – these payments can include nonemployee compensation, interest, dividends, rents, royalties, commissions, broker proceeds and barter exchange transactions, or reportable gross proceeds paid to attorneys.

Unrelated Business Income
Confirm if your organization filed any income and expense details from an unrelated business with an IRS Form 990-T. Revenue from an unrelated trade or business typically gets earned from an activity that normally has nothing to do with your organization’s exempt purpose, function, or mission. If applicable, enter the same amounts that you reported on the 990-T form.

Prohibited Tax Shelter Transactions, Non-deductible Charitable Contributions, and Deductible Contributions Under Section 170(c)
Report if your organization was a party to a prohibited tax shelter transaction and filed an 8868-T form. If applicable, you’ll need to document any listed confidential transaction within section 6707(c)(2).

For tax-exempt groups with gross receipts greater than $100,000, report any fundraising requests that weren’t eligible to receive any contributions deductible as charitable contributions. Failure to indicate any nondeductible contributions can lead to a $1,000 penalty or a maximum $10,000 fee.

Organizations that received any deductible contributions under section 170(c) need to report that an IRS Form 8282 was filed about the donated property details. You’re also required to enter donor of the goods, value, and services provided, any premiums paid or received funds to pay on any personal benefit contract, and indicate whether you received a charitable gift as a qualified intellectual property that produces net income.

Foreign Financial Accounts
If applicable, report the details of any bank, securities, or other financial accounts that your exempt organization owns in foreign countries. You can report any global financial information with a FinCEN Form 114.

Indoor Tanning Services
Report if your organization received any payments for indoor tanning services during the tax year and provide an explanation if you had filed a Form 720, Quarterly Federal Excise Tax Return, to the IRS. Indoor tanning services include any service using an electronic product that utilizes one or more ultraviolet lamps intended to induce skin tanning.

As mentioned earlier, not every tax-exempt organization will need to provide this type of information – consult with a tax professional if you’re not sure which sections apply to you. With ExpressTaxExempt.com, each area is presented in simple, interview-style questions so you can input answers quickly and easily, or pass through categories that don’t apply.

Our U.S. – based customer support is ready to help with technical issues e-filing your 990 tax return to the IRS – call us at 704.839.2321, Monday through Friday from 9 a.m. the 6 p.m. EST or send a request to [email protected].