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Common questions for Exempt Organizations (Form 990 990-PF 990-T)

last updated ‎July 20, 2020 9:45 PM

Common questions for Exempt Organizations (Form 990 990-PF 990-T)

This article contains answers to frequently asked questions regarding exempt organization returns (Form 990, 990-PF, or 990-T). Click on a question below to view the answer.

For tax year 2018, the IRS instructions for Schedule B changed. Many organizations are no longer required to report the names and addresses of donors on Schedule B. Only section 501(c)(3) organizations and section 527 organizations must still report this information. The program will automatically suppress the donor information on Schedule B when it's not required based on your organization type entered on the General > Client Information screen. See the IRS Instructions for Schedule B for additional information on these changes.
The most common answer to this question is that there are overrides entered. If an override is entered, a statement for that field will not generate. Go to the Check Return tab and click on Suggestions, on the left, to view a list of overrides that have been entered. For items of income, the overrides are most likely on the Revenue > Other Income Producing Activities screen. Expenses may be overridden on the Expenses > Functional Expenses screen, and balance sheet items may be overridden on the Balance Sheet > Balance Sheet screen.
Form 4562 is not required for Form 990 or 990PF since the depreciation is a book deduction, and not a tax deduction. You can force Form 4562 to generate on the General > Misc. (990-N, 990, 990-PF, 990-T) screen. See How do I generate Form 4562 for depreciation? for more information.

The Schedule A is only required for certain organizations. There are 3 ways to indicate that the Schedule A is required:

  • On the General > Client Information screen, in the 501(c) Paragraph No field, select 3=Charitable, Religious, etc.
  • On the General > Client Information screen, check the box 4947(a)(1) Nonexempt.
  • On the General > Misc.(990-N, 990, 990-PF, 990-T) screen, check the box Section 501(e), 501(f), 501(k), or 501(n) org.
Multiple pieces of information affect this checkbox. Verify the following items:
  • On the General > Client Information screen, Type of Return is set to 1=990/990-EZ, and 501(c) Paragraph No is set to 3=Charitable, etc.
  • On Schedule A, Part 1, box 5, 7, or 8 is checked. Input can be found on the Form 990 Schedules > Reason for Public Charity Status screen.
  • The organization must also past the 33 1/3 percent rule on Schedule A, page 2, line 14.
The most common reason is that the organization did not have more than $5,000 in assets during the year. See Generating Form 990-PF Part XV for more information.
Go to the General > Misc.(990-N, 990, 990-PF, 990-T) screen, and scroll down to the Form 990-PF subsection. Check the box Do not complete Part I, col. (c) - Adjusted Net Income.
Page 4 of the 990-T instructions state that if Part I, line 13, column A is more than $10,000, complete all lines and schedules that apply. If line 13, column A is $10,000 or less, complete Part I, lines 1-13, column A. Schedules A-K are not required.
  1. Go to the Input Return tab.
  2. On the left-side menu, select General.
  3. Click on the Client Information screen.
  4. Scroll down to the Return Info section.
  5. Make a selection other than 1=N/A in 990-T Return Type.
  1. Go to the Input Return tab.
  2. On the left-side menu, select Revenue.
  3. Click on Advertising Income (990-T).
  4. Enter the Name of periodical.
  5. Enter a 1 or 2 in 1=income reported on a consolidated basis, 2=income reported on a separate basis.
  6. Make an entry in at least one of the fields:
    • Gross advertising income
    • Direct advertising costs
    • Circulation income
    • Readership costs

Note: Per the 990-T form instructions, Schedule J will only generate when gross income is more than $10,000.

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