The IRS has its eye on the tax filings of nonprofit organizations. When you know what they’re looking for you can plan, prepare, and stay out of trouble.
A new white paper from CliftonLarsonAllen called 10 Nonprofit Tax Issues to Address Before an IRS Audit highlights red flags on Form 990 that are known to grab the attention of the IRS. Each issue is explained in detail, followed by recommended actions.
Learn more about the 10 nonprofit tax issues to address before an IRS audit. Download the white paper
Potentially troublesome issues discussed in the white paper include:
- Excessive executive compensation
- Failing to issue a required Form 1099 for independent contractors
- Providing taxable gifts to employees
- Distinguishing between qualified sponsorships acknowledgements and taxable advertising
- Renting your mailing list
- Conducting lobbying or political activities
- Identifying and reporting foreign investments
- Conducting and accounting for fundraising events
- Weak oversight and governance policies
- Not responding to IRS notices
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 audit. 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.