10 Nonprofit Tax Issues to Address Before an IRS Audit of Form 990 – October 22, 2015
CliftonLarsenAllen
Description
10) Respond to IRS compliance notices
Your organization may receive a notice from the IRS but not fully
understand its implications, and either disregard it, or fail to bring it to
the attention of qualified personnel. Failing to respond, or responding
incompletely, can significantly increase the chance of an IRS audit.
Formally designate someone to receive and respond
to IRS notices
Form 990 Part VI allows you to provide contact information for “the
person who possesses the books and records of the organization.” Do
not simply fill in the name of your organization. When the IRS initiates
contact, it usually does so by mail, not by phone, so it is important
that you provide the name of a person who is authorized to respond
to these communications. Do not allow notices to languish in the mail
room or on the receptionist’s desk simply because there is uncertainty
about who is responsible for replying.
Promptly notify your tax advisor, even if you intend to respond to the
notice without assistance.
Do not wait until the day the response is due, or until you receive a second (invariably more threatening) notice to ask for guidance. Engage a professional to prepare or review the response before it is submitted. Making a small investment to ensure a complete and accurate response can save an enormous amount of time and energy later. How we can help If you understand what is required for IRS compliance and you act accordingly, there is no need to live in fear of an examination. Preparation begins, not when the examination notice arrives, but in the years prior to receiving it.
Our nonprofit consultants can provide guidance, resources, and a tremendous amount of experience, so you can feel confident that your operational practices can stand up to IRS scrutiny. Author David Trimner, Principal, Nonprofit Tax david.trimner@CLAconnect.com or 571-227-9676 WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. ©2015 CliftonLarsonAllen LLP About CliftonLarsonAllen CLA is a professional services firm delivering integrated wealth advisory, outsourcing, and public accounting capabilities to help clients succeed professionally and personally. Our industry-specialized people offer solutions that support clients locally, nationally, and globally. Visit us online at CLAconnect.com.
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. An independent member of Nexia International The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment or tax advice or opinion provided by CliftonLarsonAllen LLP (CliftonLarsonAllen) to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of nontax and other tax factors if any action is to be contemplated. The reader should contact his or her CliftonLarsonAllen or other tax professional prior to taking any action based upon this information. CliftonLarsonAllen assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. .
Do not wait until the day the response is due, or until you receive a second (invariably more threatening) notice to ask for guidance. Engage a professional to prepare or review the response before it is submitted. Making a small investment to ensure a complete and accurate response can save an enormous amount of time and energy later. How we can help If you understand what is required for IRS compliance and you act accordingly, there is no need to live in fear of an examination. Preparation begins, not when the examination notice arrives, but in the years prior to receiving it.
Our nonprofit consultants can provide guidance, resources, and a tremendous amount of experience, so you can feel confident that your operational practices can stand up to IRS scrutiny. Author David Trimner, Principal, Nonprofit Tax david.trimner@CLAconnect.com or 571-227-9676 WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. ©2015 CliftonLarsonAllen LLP About CliftonLarsonAllen CLA is a professional services firm delivering integrated wealth advisory, outsourcing, and public accounting capabilities to help clients succeed professionally and personally. Our industry-specialized people offer solutions that support clients locally, nationally, and globally. Visit us online at CLAconnect.com.
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. An independent member of Nexia International The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment or tax advice or opinion provided by CliftonLarsonAllen LLP (CliftonLarsonAllen) to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of nontax and other tax factors if any action is to be contemplated. The reader should contact his or her CliftonLarsonAllen or other tax professional prior to taking any action based upon this information. CliftonLarsonAllen assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. .
