Many associations for whom we have successfully prepared tax exemption applications have returned to us to say that their regular auditor / tax preparer is reluctant to prepare the Form 990 tax return for the association. Those individuals have indicated that while they are comfortable with the Form 1120-H and Form 1120 tax returns for associations, they are far less comfortable with Form 990. For the vast majority of associations, Forms 1120 and 1120-H are the ONLY options, so the majority of tax preparers do not have the experience or knowledge to properly prepare Form 990.
Form 990 for tax exempt organizations has become a very burdensome tax form to file. In 2008 IRS completely revised Form 990, making it far more complex than it was in the past. Unfortunately, that means that the time we spend in preparing a Form 990 tax return is multiples of preparing a Form 1120 or 1120-H tax return. Our fees for preparing Form 990 start at $1,500 for most associations, but can be much higher for larger, more complex associations, that conduct numerous activities. IRS now essentially requires that associations adopt certain policies and make far more disclosures than ever.
We are familiar with these Form 990 requirements and are available to prepare your Form 990 tax return. Please contact us at Porter & Lasiewicz regarding our Form 990 tax preparation services. Please call 805-433-6022.