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Form 990

Reviewing Accounts, Recipients and Sales

Creating Custom 990 Registers

Many of the account, recipient and sales fields that you need to review at the account level are also available for adding as columns to custom 990 registers. Adding these columns allows you to complete your review at the register level rather than accessing the account binder for each account. For example, you can:
  • Add the
    Form 990 return type
    ,
    Form 990 PF return type
    ,
    Form 990 EZ return type
    ,
    Form 990 N return type
     and
    Form 990 T return type
     columns to review the 990 return type(s) for your 990 accounts. These columns are in the
    Account Master Information
     category on the Register Properties page.
  • Add the
    Recipient's Relationship to Substantial Contributor
    ,
    Foundation Status of Recipient and Purpose of Grant
    ,
    Allocation or Contribution
     columns to a recipient-type custom register to review the grant, allocation and contribution information for the recipients listed on your 990 accounts. These columns are in the
    990 Specific Recipient Info
     category on the Register Properties page.
  • Add the
    990 Category Code (all return types)
    ,
    990-PF Acquisition Method
     and
    990-PF Property Type
     columns to a sales-type custom register to review the 990-specific sales fields. These columns are in the
    Sales General Information
     category on the Register Properties page.
  • Add the
    Local process dual 1041 & 990 return
     column to set the dual processing flag for Section 4947(a)(1) trusts that require both 1041 and 990 return reporting. This column is in the
    Account Tape Lock-Out Signals
     category on the Register Properties page.

Reviewing the Entity Type and 990 Return Types to Generate for a 990 Account

ONESOURCE Trust Tax considers a 990 account a separate entity type. The entity type can be set when the account is created in ONESOURCE Trust Tax or it can be included in the data that is bridged to your ONESOURCE Trust Tax database. You can use the
Account
 collapsible section on the Account Information page to review the entity type and select the 990 return types that should be generated for a 990 account.
note
The Account record in the Generic bridge includes the Account Type (Filing Status) and 990-T indicator fields. For accounts where Form 990-PF applies, the filing status can be reviewed from the
Type of organization
 drop-down list under the
General Information
 collapsible section on the Form 990-PF page.
The codes and descriptions for the Account Type (Filing Status) and 990-T indicator fields include:
Field
Code
Description
Account Type (Filing Status)
60
990
61
990-EZ
62
990-PF Non-operating foundation
63
990-PF operating foundation-I.R.C. Section 4942(j)(3)
64
990-PF operating foundation-I.R.C. Section 4942(j)(5)
65
990-N e-postcard for 990 or 990-EZ filer not meeting the filing threshold
990-T indicator
0
N/A
1
501(c) trust
2
401(a) trust
3
501(c) corporation
4
Other trust
To review the entity type and the 990 return types that should be generated for a 990 account:
  1. Open the 990 account.
  2. Under the
    Account
     collapsible section on the Account Information page, review the
    Type of Entity
     drop-down list.
    990
     should be displayed. If
    990
     is not displayed, be sure to select it from the list. Otherwise, the entity type for the account will be incorrect.
  3. Review the check boxes in the
    990 Return Types
     box. If a check box is selected, the corresponding return will be generated. If a check box is not selected, the corresponding return will not be generated.
  4. The graphic below shows where the
    Type of Entity
     drop-down list and
    990 Return Types
     box is located. Notice that 990 is the entity type and that a Form 990 will be generated for the account.
  5. Select
    Save
     if you made changes.

Setting the Dual Processing Flag for Accounts Requiring 990 and 1041 Return Reporting

Beginning with tax year 2021, accounts that require dual return processing (Section 4947(a)(1) trusts that require both 1041 and 990 return reporting) can be processed, tracked and e-filed separately. For these accounts, the dual return processing flag must be set before processing.
note
You can set the dual processing flag from a custom register that has the
Local process dual 1041 & 990 return
 column added to it. This column is in
Account Tape Lock-Out Signals
 category in the first grid under the
Detail Columns
 collapsible section on the Register Properties page.
To set the dual processing flag in the account binder:
  1. Open the 990 account that requires dual return processing.
  2. Under the
    Account
     collapsible section on the Account Information page, select the
    This trust files both a 1041 and a 990 (Section 4947(a)(1) trusts)
     check box.
  3. Select
    Save
    .
  4. Now, you can review the
    Type of Entity
     drop-down list to ensure
    990
     is displayed, and review the check boxes in the
    990 Return Types
     box to ensure the applicable 990 return type will be generated. When you are ready to switch from the 990 return type to the 1041 return, select
    Switch to 1041
     from the
    Account Action
     drop-down list.
  5. The Account Information page is refreshed after you select
    Switch to 1041
    . On the Account Information page, the
    This trust files both a 1041 and 990
     check box shows as selected,
    Complex ($100)
     displays in the
    Type of Entity
     drop-down list, and the applicable 990 return type check box is selected but shows as unavailable for clearing.
  6. When the entity type is
    Complex ($100)
    , ONESOURCE Trust Tax functions the same as with any complex trust return type. Likewise, when the entity type is
    990
    , ONESOURCE Trust Tax functions the same as with any 990 return type.
  7. If you want to switch from the 1041 return back to the 990 return type, select
    Switch to 990
     from the
    Account Action
     drop-down list. After switching back to the 990 return type, the applicable 990 form page in the
    Tax Review-990
     main topic displays.

Creating a Combined Account for Generating a Group Return on Form 990

Organizations that are exempt under a group exemption letter are allowed to file a group return on Form 990. ONESOURCE Trust Tax facilitates generating group returns by allowing you to create combined accounts. A combined account has one account identified as the parent account (for the central organization), and one or more child accounts (for the subordinate organizations) associated with the parent account. Throughout the year, the tax data for each child account is managed. When it is time, the tax return for the parent account is processed to generate the group return.
note
Prior to the 22.05 release of ONESOURCE Trust Tax, when a combined account was created, modified or removed, the association applied to all tax years. If the association was removed in a certain tax year, it was removed for all years. Beginning with the 22.05 release, when an association is added, it applies to the current tax year and will carry forward, but the association will not apply to prior years. If an association is removed, the change applies to the logged in tax year and carries forward but does not apply to prior years.
To create a combined account for generating a group return on Form 990:
  1. Identify the parent account for the central organization. To identify the parent account:
    1. Open the parent account.
    2. Under the
      Related Accounts
       collapsible section on the Account Information page, select the
      Needs Related Account Processing
       check box. Notice that the
      Combined: Main Account
       option is selected by default.
    3. Select
      Save
      .
  3. Associate the child accounts for the subordinate organizations. To associate a child account:
    1. Open the child account.
    2. Under the
      Related Accounts
       collapsible section, select the
      Needs Related Account Processing
       check box.
    3. Select the
      Combined: Sub Account of
       option then enter the account number of the parent account in the associated field.
    4. Select
      Save
      .
    5. Repeat steps 2a through 2d for each subordinate organization. The Combined Accounts page allows you to review the account relationships for a combined account, access each child account, and remove a relationship if an account was associated in error. To access the Combined Accounts page from the parent or a child account, select
      Account
       then
      Related Accounts
       in the topic list panel. To access a child account from the Combined Accounts page, select the link in the
      Account
       field for the child account. To remove a relationship, select Delete for the child account then select
      Save
      .

Entering 990 Ratio Amounts

990 ratio amounts allow you to report less than 100 percent of the taxable amount for a revenue or expense item in a specific column on Form 990. The task of entering 990 ratio amounts is similar to entering 990-PF ratio amounts. The differences include:
  • 990 ratio amounts are available only at the account level.
  • 990 ratios do not default to 100%.
The 990 Ratios page is available only for 990 accounts that generate Form 990. The fields on the 990 Ratios page are activated only after the
Use 990 Ratios for this account
 check box is selected. If a 990 ratio is not entered, then no amount is reported in the column of the respective line item. The PAN-level revenue and expense tax code assignments (which are set as 990 control information) are used if the
Use 990 Ratios for this account
 check box is deselected after the 990 ratios are saved.
To enter 990 ratio amounts:
  1. Open the 990 account.
  2. Select
    Account
     then
    990 Ratio
     in the topic list panel.
  3. Review the
    Use 990 Ratios for this account
     check box. If the check box is deselected, select it to activate the fields on the 990 Ratios page.
  4. For each revenue and expense item, select in the field under the
    Revenue
     and
    Expense
     collapsible sections then enter the ratio amount as a decimal percentage.
  5. Select
    Save
    .

Reviewing Recipients

The details for each recipient (including the recipient's name and address, and information about the grants, allocations and/or contributions paid to the recipient during the current year) are included on the Recipient Detail page. These details can be bridged to your ONESOURCE Trust Tax database, or they can be manually entered. If the information is bridged, set up the recipients in your tax accounting system as beneficiaries and grants, and use a beneficiary tax code, such as tax code 149 (Beneficiary Distributions), for the payments made to the recipients.
To review the information for a recipient:
  1. Open the 990 account.
  2. Select the
    Recipients
     main topic.
  3. Review the recipients listed in the grid under the
    Recipient Listing
     collapsible section to determine if each recipient is valid. Based on this high-level review, you may need to add or delete recipients.
    • To add a recipient, enter the recipient information in the row below the grid heading, press the TAB key until you move off the row then select
      Save
      .
    • To delete a recipient, select Delete for the row that includes the recipient you want to delete then select
      Save
      .
  5. Select the
    Name
     link for the recipient you want to review.
  6. Under the
    Recipient Information
     collapsible section, review the recipient's basic information. Make any necessary changes.
  7. Select the
    Grants, Allocations, and Contributions
     collapsible section. The fields shown under this collapsible section depend on whether the grant, allocation or contribution is cash or noncash. The following graphic shows that a cash amount of $10,000 was awarded to Charities Management, Inc. during the current year:
  8. Review the grant, allocation and contribution information. Make any necessary changes.
  9. Select
    detail
     to review the details for the total amount paid to the recipient. The details display in a grid below the
    Total grants, allocations and contributions
     field. Make any necessary changes to the grid.
  10. Select
    Save
    .
Matching an Unmatched Distribution with a Recipient
Transactions that are not associated with a specific recipient are listed as unmatched distributions. In ONESOURCE Trust Tax, you can determine the number of unmatched distributions for a 990 account from two locations:
  • The
    Unmatched Distributions
     subtopic
  • The
    Grants, Allocations, and Contributions
     collapsible section on the Recipient Detail page
The following graphic shows what the
Unmatched Distributions
 subtopic looks like when there is one unmatched distribution:
The graphic below shows what the
Grants, Allocations, and Contributions
 collapsible section looks like after
detail
 is selected. Notice that the total amount in the
Total grants, allocations and contributions
 field is incorrect and that the
Match
 column in the distribution grid indicates that the distribution is
Unmatched
.
To match an unmatched distribution with a recipient:
  1. Open the 990 account.
  2. Select
    Recipients
     then
    Unmatched Distributions
     in the topic list panel.
  3. Select the
    Transaction Detail
     link for the unmatched distribution.
  4. Select the
    Paid For
     collapsible section.
  5. Select the
    Active
     check box for the recipient you want to match the distribution to.
  6. Select
    Save
    . The distribution is matched to the recipient.

Reviewing Sales Details

Sales details can be reviewed at any time during the year to help minimize the amount of maintenance and review you need to complete during tax season. Although the same sales data that is bridged for 1041 returns can be bridged for 990 return types, there are some specific sales fields that apply to only 990 return types that cannot be bridged. These fields should be reviewed to ensure they are set correctly.
To review the details for a sale:
  1. Open the 990 account.
  2. Select the
    Sales
     main topic.
  3. Select the
    Sale Detail
     link for the sale you want to review. You can move through the sales for an account from the Sale Detail page by selecting Back or Forward at the top of the Sale Detail page.
  4. Review the details of the sale. The fields to pay particular attention to depend on the 990 return type(s) generated for the account. The following table lists 990 return type(s), collapsible section where the fields can be found and the fields to review:
    990 Return Type(s)
    Collapsible Section
    Review
    990 and 990-EZ
    Sales Detail
    The
    Book Value
     field.
    For Forms 990 and 990-EZ, the book value is used as the cost basis only if the
    Form 990/990-EZ-use book value as the cost basis of the sale
     Capital Sales option on the Options and Overrides page is set to
    Yes
    .
    990, 990-EZ, 990-PF and 990-T
    Associated Activities
    The
    Category Code
     drop-down list.
    For Forms 990, 990-EZ and 990-T, the default selection is
    Securities (990 & 990-EZ)
    . For Form 990-PF, the default selection is
    Investment Property (990-PF)
    .
    The
    Property Used in Unrelated Trade or Business (990-T only)
     selection is used for Form 990-T reporting purposes only. The sale is not reported on Form 990 or 990-EZ if you use this selection and Form 990-T is not generated for the account.
    990-PF
    Associated Activities
    The
    Acquisition Method
     drop-down list.
    This drop-down list is empty by default, but you can select whether the asset was donated or purchased.
    990-PF
    Associated Activities
    The
    Property Type
     drop-down list.
    The default selection is
    Securities
    , but you can select whether the asset is a common trust fund, real estate or other.
  5. If you made changes, select
    Save
     before reviewing the next sale.

This article applies to:

  • PRODUCT: ONESOURCE Trust Tax
  • Return type: 990 Exempt Organization