Reviewing Information Specific to Form 990
Exempt organizations filing Form 990 must include all required schedules for the return to be complete. Schedule O is a required schedule. In addition to Form 990, an exempt organization may be required to file Form 990-T to report unrelated trade or business income. See Reviewing Information Specific to Form 990-T for details.
In the account binder, the Form 990 page is accessible from the
Tax Review-990
main topic when the 990
check box is selected on the Account Information page. Selecting the Tax Review-990
main topic selects the Form 990
subtopic and displays the Form 990 page. On the Form 990 page, the collapsible sections are closed so that you can find and access (rather than scroll to) the information you want to review. Selecting a section heading opens the section and displays its details.The following graphic shows that the
Form 990
subtopic is selected and that the collapsible sections on the Form 990 page are closed:In addition to the
Form 990
subtopic, the Tax Review-990
main topic includes separate subtopics for:- Form 990-T (if the990 Tcheck box is selected on the Account Information page).
- Each Schedule applicable to Form 990.
- Income items, such as capital gains/losses and ordinary gains/losses.
- Rent and royalty assets.
- Partnership or S corporation K-1 input (which is entered and updated like 1041 Schedule K-1 input).
- Depreciation.
- Form 4797 (for sales of business properties).
- Form 4720 (for excise tax liability).
- Tax return footnotes (which are entered and updated like tax return footnotes for 1041 returns).
- Tax return extensions (for entering or overriding information for Form 8868).
Generally, the collapsible sections on the Form 990 page are arranged like the Parts of Form 990. Some Form 990 Parts, however, are separated into more than one collapsible section. For example, there are multiple collapsible sections that apply to Parts VI, VII and VIII. For Part VI, there are three collapsible sections (
Part VI, Governing Body and Management
, Part IV, Policies
and Part VI, Disclosure
) that correspond to Sections A, B and C respectively. For Part VII, the Part VII, Compensation of Officers, Directors, Trustees Etc.
and Officers, Directors, Key Employees and Independent Contractors
collapsible sections allow you to review, enter and update compensation information. For Part VIII, there are four collapsible sections. As shown in the following graphic, the titles for three of the collapsible sections indicate in parenthesis the lines they apply to:note
Much of the information on the Form 990 page rolls from one year to the next. This means that, for example, you will answer the questions that determine the schedules to complete the first year you use ONESOURCE Trust Tax to process the account. Each subsequent year, you will review then update only those questions that require updating.
Reviewing General Information
The
General Information
collapsible section on the Form 990 page allows you to review, enter or update:- Information reported in the heading area of Form 990. This includes selecting the procedure (Not Applicable, Revenue Procedure 85-58, or Form 1128) by which the organization obtained IRS approval for a change in its accounting period.
- Books and records information (reported in Part VI, Section C, line 20).
- Some state-related information.
- Affiliate information for organizations that are exempt under a group exemption letter.
Reviewing the Mission Governance and Operational Information Summary
The
Summary
collapsible section on the Form 990 page corresponds to Part I on Form 990. Since the information reported in Part I on Form 990 originates from the other Parts of Form 990, the Summary
collapsible section should be one of the last collapsible sections that you review.When you access the
Summary
collapsible section, you will notice a number of read-only fields. These fields are read-only because the information originates from a field in another collapsible section. Including the information from the originating field in the Summary
collapsible section allows you to review the information and keeps the information consistent throughout Form 990. If, during your review, you want to update the information in a read-only field, access the originating field, make your change and save it, then process the account. After processing completes, the field under the Summary
collapsible section will show the updated information.Reviewing Program Service Accomplishments
Part III of Form 990 is used to describe the organization's program services, which are those activities forming the basis for the organization's tax-exempt status. The information in Part III also supplements the expenditures in Part IX. On the Form 990 page, the Part III, Program Service Accomplishments collapsible section is used to review, enter or update:
- The organization's approved mission statement.
- The answers to the questions regarding new or changed program services.
- The program service information for the three largest program services. Program services include grants or allocations paid to recipients. If there are program services that were comparable to the three largest program services, then the totals for those services can be entered as other program services. Other program services are reported on line 4d in Part III, and described in Schedule O.
The graphic below shows the
Part III, Program Service Accomplishments
collapsible section for the fictional ABC Charities. Notice that the Expense
column includes the total amount of expenses incurred for each of the three largest program services, and that the Including Grants
column includes the grant amount paid to recipients throughout the year.note
You can review transaction level detail and enter transaction level overrides for program service revenue using the
Part VII, Statement of Revenue, Contributions/Program Service
collapsible section. To review the transaction level detail, select the Transaction Detail
link for Five largest program service revenue sources
or All other program service revenue sources
. To enter transaction level overrides, select the Override
link for Five largest program service revenue sources
or All other program service revenue sources
.Reviewing Questions about Required Schedules, Other IRS Filings and Tax Compliance, Governance, Management and Disclosure
Parts IV, V and VI on Form 990 ask several questions that should be answered rather than leaving blank. These questions determine whether a particular Schedule must be completed, serve as a checklist for other IRS compliance that may be required by the organization, and provide information about the organization's governing body, management, governance policies and disclosure practices. Answers to the questions in Parts IV, V and VI can be provided using registers or the account binder. The registers that can be used to provide answers include:
- Form 990 Accounts with Part IV Questions
- Form 990 Accounts with Part V Questions
- Form 990 Accounts with Part VI Questions
In the account binder, the questions are listed under the following collapsible sections on the Form 990 page:
- Part IV, Checklist of Required Schedules-Determines whether a particular Schedule must be completed. AnsweringYesindicates that the applicable Schedule (or Part or line on the Schedule) needs to be completed. See Cross Reference for Part IV Questions and Required Schedules for details.
- Questions displayingRequiredas the answer indicate that you must change the answer toYesorNo.
- To access the page for the applicable Schedule, select the corresponding subtopic from theTax Review-990main topic. For example, to access the Schedule O page, selectTax Review-990thenSchedule Oin the topic list panel.
- Part V, Statements Regarding Other IRS Filings and Tax Compliance-Provides a checklist for other IRS compliance that may be required by the organization. AnsweringYesto a question or entering the requested information may indicate that there are potential compliance requirements that are not necessarily related to Form 990. See Cross Reference for Part V Lines and IRS Compliance Requirements for details.
- Questions displayingRequiredas the answer indicate that you must change the answer toYesorNo.
- Part VI, Governing Body and Management-Corresponds to Section A, which provides information regarding the policies and procedures related to the organization's governing body and management. Answer each question and enter the requested information. Questions displayingRequiredas the answer indicate that you must change the answer toYesorNo.
- Part VI, Policies-Corresponds to Section B. The questions determine whether specific policies have been adopted and what procedures are in place for monitoring compliance. Answer each question or enter the requested information. Questions displayingRequiredas the answer indicate that you must change the answer toYesorNo.
- Part VI, Disclosure-Corresponds to Section C. Answer each question or enter the requested information. Questions displayingRequiredas the answer indicate that you must change the answer toYesorNo.
- The books and records information is under theGeneral Informationcollapsible section on the Form 990 page.
- ONESOURCE Trust Tax does not support register fields for the questions in Parts IV, V and VI.
Cross Reference for Part IV Questions and Required Schedules
The table below provides a cross reference for the questions in Part IV of Form 990, the Schedule that applies when the answer to the question is
Yes
, and where to find the information in ONESOURCE Trust Tax. To access the page for an applicable Schedule, select the corresponding subtopic from the Tax Review-990
main topic.note
Schedule O is required for all Form 990s.
Part IV Line | General Subject of the Question | Applicable Schedule | Where to Find Schedule Data in ONESOURCE Trust Tax |
|---|---|---|---|
1 | Public charity status | Schedule A | General Information collapsible section on the Form 990 page.note
The public charity status is automatically reported on Schedule A based on the Tax-Exempt Status selection. |
2 | Schedule B | Schedule B | The Schedule B page. |
3 | Political campaign activities for a Section 501(c)(3) organization | Schedule C, Part I | Part I, A-C collapsible section on the Schedule C page. |
4 | Lobbying activities | Schedule C, Part II | One of the following collapsible sections on the Schedule C page:
|
5 | Membership dues or assessments for Section 501(c)(4), 501(c)(5) or 501(c)(6) organizations | Schedule C, Part III | One of the following sections on the Schedule C page:
|
6 | Donor advised funds | Schedule D, Part I | Part 1, Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts collapsible section on the Schedule D page. |
7 | Conservation easements | Schedule D, Part II | Part II, Conservation Easements collapsible section on the Schedule D page. |
8 | Maintenance of works of art or historical treasures | Schedule D, Part III | Part III, Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets collapsible section on the Schedule D page. |
9 | Escrow accounts and custodial arrangements | Schedule D, Part IV | Part IV, Trust, Escrow and Custodial Arrangements collapsible section on the Schedule D page. |
10 | Endowment funds | Schedule D, Part V | Part V, Endowment Fund collapsible section on the Schedule D page. |
11a | Land, buildings and equipment | Schedule D, Part VI | Part VI, Land, Buildings and Equipment collapsible section on the Schedule D page. |
11b | Investments classified as other securities | Schedule D, Part VII | Part VII, Investments-Other Securities collapsible section on the Schedule D page. |
11c | Program related investments | Schedule D, Part VII | Part VIII, Investments-Program Related collapsible section on the Schedule D page. |
11d | Assets classified as other assets | Schedule D, Part IX | Part IX, Other Assets collapsible section on the Schedule D page. |
11e | Liabilities classified as other liabilities | Schedule D, Part X | Part X, Other Liabilities collapsible section on the Schedule D page. |
11f | Financial statement footnotes addressing liability for uncertain tax positions | Schedule D, Part X | Part X, Other Liabilities collapsible section on the Schedule D page. |
12a and 12b | Audited financial statements | Schedule D, Parts XI and XII Parts XI and XII are optional if the answer to 12a is No but the answer to 12b is Yes. | The following collapsible sections on the Schedule D page:
|
13 | Private schools | Schedule E | Part I Questions on the Schedule E page. |
14b | Activities outside the United States | Schedule F, Parts I and IV | The following collapsible sections on the Schedule F page:
|
15 | Grants and other assistance to organizations outside the US | Schedule F, Parts II and IV | The following collapsible sections on the Schedule F page:
|
16 | Grants and other assistance to individuals outside the US | Schedule F, Parts III and IV | The following collapsible sections on the Schedule F page:
|
17 | Professional fundraising services | Schedule G, Part I | Part I, Fundraising Activities collapsible section on Schedule G page. |
18 | Fundraising events | Schedule G, Part II | Part II, Fundraising Events collapsible section on the Schedule G page. |
19 | Gaming activities | Schedule G, Part III | Part III, Gaming collapsible section on the Schedule G page. |
20 | Hospital facilities | Schedule H | note
Schedule H is not supported by ONESOURCE Trust Tax. |
21 | Grants and other assistance to organizations or governments in the US | Schedule I, Parts I and II | The following collapsible sections on the Schedule I page:
|
22 | Grants and other assistance to individuals in the US | Schedule I, Parts I and III | The following collapsible sections on the Schedule I page:
|
23 | Compensation of current and former officers, directors, trustees, key employees, highest compensated employees and independent contractors | Schedule J | Schedule J, Questions collapsible section on the Schedule J page. |
24 | Tax-exempt bonds | Schedule K | note
Schedule K is not supported by ONESOURCE Trust Tax. |
25a and 25b | Excess benefit transactions for a Section 501(c)(3), 501(c)(4) or 501(c)(29) organization | Schedule L, Part I | Part I, II-Excess Benefits or Loans to and/or from Interested Persons collapsible section on the Schedule L page. |
26 | Loans to and/or from interested persons | Schedule L, Part II | Part I, II-Excess Benefits or Loans to and/or from Interested Persons collapsible section on the Schedule L page. |
27 | Grants or other assistance benefiting interested persons | Schedule L, Part III | Part III, IV-Grants/Assistance Benefiting or Business Transactions Involving Interested Persons collapsible section on Schedule L page. |
28a through 28c | Business transactions involving interested persons | Schedule L, Part IV | Part III, IV-Grants/Assistance Benefiting or Business Transactions Involving Interested Persons collapsible section on Schedule L page. |
29 | Noncash contributions | Schedule M | The following collapsible sections on the Schedule M page:
|
30 | Noncash contributions classified as works of art or historical treasures | Schedule M | The following collapsible sections on the Schedule M page:
|
31 | Liquidation, termination, dissolution or ceasing operations | Schedule N, Part I | Part I-Liquidation, Termination, or Dissolution collapsible section on the Schedule N page. |
32 | Significant disposition of net assets | Schedule N, Part II | Part II-Sale, Exchange, Disposition, or Other Transfer of More Than 25% of the Organization's Assets collapsible section on the Schedule N page. |
33 | Disregarded entities | Schedule R, Part I | Part I-Identification of Disregarded Entities collapsible section on the Schedule R page. |
34 | Related tax-exempt organizations | Schedule R, Part II, III or IV, and Part VI, line 1 | One of the following collapsible sections on the Schedule R page:
And, the Part VI-Unrelated Organizations Taxable as a Partnership collapsible section on the Schedule R page. |
35b | Transactions with related organizations | Schedule R, Part V, line 2 (if the answers are Yes to 35a and 35b) | Part V-Transactions with Related Organizations collapsible section on the Schedule R page. |
36 | Transactions with related organizations | Schedule R, Part V, line 2 | Part V-Transactions with Related Organizations collapsible section on the Schedule R page. |
37 | Unrelated organizations taxable as partnerships | Schedule R, Part VI | Part VI-Unrelated Organizations Taxable as a Partnership collapsible section on the Schedule R page. |
38 | Schedule O | Schedule O | note
Schedule O is required for all Form 990s. |
Cross Reference for Part V Lines and IRS Compliance Requirements
The table below is a cross reference between the lines in Part V of Form 990 and other IRS compliance requirements that may not necessarily be related to Form 990. Answering
Yes
to a question or providing information in a field may indicate that other IRS compliance requirements apply to the organization.Part V Line(s) | Potential IRS Compliance Requirement |
|---|---|
1a-2b | Payroll |
3a-3b | Unrelated business income |
4a-4b | Foreign financial accounts |
5a-5c | Tax shelter transactions |
6a-7h | Contributions received |
8-9b | Donor advised funds |
10a-10b | Section 501(c)(7) organizations |
11a-11b | Section 501(c)(12) organizations |
12a-12b | Non-exempt charitable trusts |
13a-13c | Section 501(c)(29) organizations |
14a-14b | Indoor tanning services |
15-16 | Excise taxes |
17 | Section501(c)(21) organizations |
Reviewing Compensation and Benefit Information
Compensation is reported in Part VII, Sections A and B of Form 990. Section A is used for current and former officers, directors, trustees, key employees and the five highest compensated employees whose compensation exceeds $100,000, and includes compensation from related organizations. Section B is used for the five highest compensated independent contractors, but does not include compensation from related organizations.
On the Form 990 page, you can review, enter and update compensation information using the following collapsible sections:
- Part VII, Compensation of Officers, Directors, Trustees Etc.-This collapsible section generally corresponds to the check boxes and questions in both Sections A and B.
- Officers, Directors, Key Employees and Independent Contractors-This collapsible section has two grids for reviewing, entering and updating compensation information. The first grid applies to the table in Section A, and is used for current and former officers, directors, trustees, key employees and the five highest compensated employees whose compensation exceeds $100,000. The second grid applies to the table in Section B, and is used for the five highest compensated independent contractors.
Reviewing Revenue and Functional Expenses
Revenue and functional expenses are reported by line in Parts VIII and Part IX of Form 990. The following collapsible sections on the Form 990 page show the total taxable amounts for the transactions that were mapped as revenue or expense items:
- Part VIII, Statement of Revenue, Contributions/Program Service-Includes revenue amounts classified as:
- Voluntary contributions (cash and noncash), gifts, grants and other similar amounts received by the organization.
- Program service revenue.
- You can review and override the total taxable amount for revenue classified as voluntary contributions (cash and noncash), gifts, grants and other similar amounts. For program service revenue, you can review transaction level detail and enter transaction overrides. To review transaction level detail, select theTransaction Detaillink forFive largest program service revenue sourcesorAll other program service revenue sources. To enter transaction overrides, select theOverridelink forFive largest program service revenue sourcesorAll other program service revenue sources.
- Part VIII, Statement of Revenue, Other Revenue (3-6)-Includes revenue amounts classified as:
- Investment income.
- Rental income.
- Royalties received by the organization.
- You can review and override the total taxable amount for these revenue classifications. For investment income and royalties received by the organization, you can select theDetaillink to review the transaction level detail.
- Part VIII, Statement of Revenue, Other Revenue (7-8)-Includes revenue amounts classified as:
- Sales of assets other than inventory.
- Income from fundraising activities or events.
- You can review and override the total taxable amount for these revenue classifications.
- Part VIII, Statement of Revenue, Other Revenue (9-11)-Includes revenue amounts classified as:
- Income from gaming activities.
- Sales of inventory.
- Miscellaneous revenue.
- You can review and override the total taxable amount for revenue classified as income from gaming activities and sales of inventory. For sales of inventory, you can select theDetaillink to review the transaction level detail. For miscellaneous revenue, you can review the transaction level detail and enter transaction level overrides. To review transaction level detail, select theTransaction Detaillink for the three largest miscellaneous revenue sources or all other miscellaneous revenue sources. To enter transaction level overrides, select theOverridelink for the three largest miscellaneous revenue sources or all other miscellaneous revenue sources.
- Part IX, Statement of Expense-Includes fields for reviewing and entering joint cost allocations (reported in line 26 of Part IX), and a grid for reviewing and overriding the different functional expenses included in lines 1 through 24e of Part IX. For many of the functional expenses, you can select theDetaillink in theDetailcolumn to review the transaction level detail.
Reviewing the Balance Sheet
The balance sheet items listed in Part X of Form 990 are included under the
Part X Balance Sheet
collapsible section on the Form 990 page. The first year you use ONESOURCE Trust Tax to process the Form 990 return for the account, you must enter the beginning book and ending book values. Each year thereafter, the ending book values from the prior year are used as the beginning book values for the subsequent tax year.Schedules D and L are used to provide supplemental information to the balance sheet. When applicable to a balance sheet item, the
Detail
column in the balance sheet grid includes a Schedule D
or Schedule L
link. Selecting this link displays the Schedule D or Schedule L page as a pop-up window. Entering and changing Schedule D or L information is the same regardless of whether you use the pop-up window or the page. Selecting Save
saves the information on both the pop-up window and the page.note
Some states (but not the IRS) require FASB ASC 958 (formerly SFAS 117) reporting. If the exempt organization complies with FASB ASC 958, select
Yes
from the Does the organization follow SFAS 117
drop-down list, and be sure to review and, if necessary, override the beginning book and ending book values for the Unrestricted net assets
, Temporarily restricted net assets
and Permanently restricted net assets
rows under Organizations that follow SFAS 117
in the balance sheet grid. If the exempt organization does not comply with FASB ASC 958, you can select No
, Leave Blank
or N/A
from the Does the organization follow SFAS 117
drop-down list. Use the fields under Organizations that do not follow SFAS 117
in the balance sheet grid, to review and, if necessary, override the beginning book and ending book values.Reviewing the Reconciliation of Net Assets
Part XI of Form 990 is used to reconcile an exempt organization's beginning and ending net assets or fund balances for the year. On the Form 990 page, the
Part XI Reconciliation of Net Assets
collapsible section identifies the items that are automatically calculated by ONESOURCE Trust Tax, and allows you to review, enter and update the following amounts:- Any net unrealized gains (losses) on investments (reported on line 5).
- The value of any donated services and use of facilities (reported on line 6).
- Investment expenses (reported on line 7).
- Adjustments that relate to prior periods (reported on line 8).
You can also use the
Part XI Reconciliation of Net Assets
collapsible section review, enter and update the line 9 explanation for other changes in net assets or fund balances, which is reported on Schedule O.Reviewing Financial Statements and Reporting
Part XII of Form 990 is used to explain the level of involvement by an independent accountant and any audits required for organizations that receive federal grants under the Single Audit Act and OMB Circular A-133. On the Form 990 page, you can use the
Part XII, Financial Statements and Reporting
collapsible section to:- Indicate or change the accounting method used to prepare the Form 990, and enter an explanation if the organization changed its method of accounting from a prior year or used an accounting method other than the cash or accrual method. The accounting method is reported in line 1, and the explanation is reported on Schedule O.
- Answer the financial statement questions and enter an explanation if the organization changed its process for overseeing the compilation, review or audit of financial statements and the selection of the independent contractor who complied, reviewed or audited the statements. Questions displayingRequiredas the answer indicate that you must change the answer toYesorNo.
- The answers to the financial statement questions are reported in lines 2a through 2c, and the explanation is reported on Schedule O.
- Answer the audit questions and enter an explanation if the organization has not undergone any required audit or audits. Questions displayingRequiredas the answer indicate that you must change the answer toYesorNo.
- The answers to the financial statement questions are reported in lines 3a and 3b, and the explanation is reported on Schedule O.