Does Your Nonprofit Need an Independent Audit?
The Internal Revenue Service (IRS) doesn’t require nonprofits to have independent audits, but that doesn’t mean your nonprofit never needs an audit. Some federal, state and local government agencies require audits, as do some banks and foundations. Generally, the requirements relate to the nonprofit’s size or spending. When an Audit Is Required An independent audit […]
CARES Act Adds Flexibility to Net Operating Losses
Revenue Procedure 2020-24 provides guidance to taxpayers with net operating losses that are carried back under the CARES Act by providing procedures for: Waiving the carryback period in the case of a net operating loss arising in a taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2021. Disregarding certain amounts of foreign income […]
Guide to Preparing for an Audit of Your Nonprofit
Having an independent audit is a significant endeavor. Not only is it an expense, but it also requires a lot of preparation. The auditors will need access to all of the information they need to help them carry out their mandate — that is, examining your organization’s financial records, accounts, business transactions, accounting practices and […]
SELECTING AN AUDIT FIRM FOR YOUR NONPROFIT ORGANIZATION
The requirement for a nonprofit organization to have an annual audit of their financial statements varies from state to state. The State of Michigan requires any charitable organization that solicits or receives, or intends to solicit or receive, contributions to register with the attorney general. The State requires the organization to have an audit of […]
REMINDER! W-2s DUE JANUARY 31
You are required to prepare and file a Form W-2 for each employee to whom you made payments for services where: You withheld any amount of income tax, social security tax, or Medicare tax from the employee’s wages, regardless of the amount of wages, or You would have had to withhold income tax if the […]
REMINDER! 1099S FOR NONEMPLOYEE COMPENSATION DUE JANUARY 31
While most 1099s aren’t due until February 29 (March 31, if you file them electronically), any Forms 1099-MISC for which Box 7, Nonemployee Compensation, is checked must be filed by January 31, regardless of whether you are filing on paper or electronically. You are required to issue a Form 1099-MISC for nonemployee compensation to any […]
