Milestone 2

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Milestone 2 ACC 325 Brandon Humphries
To ensure Repairing Hope remains in compliance, there are a couple of annual filing requirements that must be completed. At the federal level, all financial reports will need to be submitted to the IRS with the applicable version of the 990 form. In South Carolina, where Repairing Hope is located, charitable organizations that have filed a registration statement with the Secretary of State or are soliciting contributions must file an annual financial report with the Secretary of State. The report must be filed within four and one-half months of the close of the organization's fiscal year unless an extension is granted. The annual financial report must include specific and itemized information about the organization's support and revenue, expenses, and assets and liabilities. (SC Code ANN. §33-56-60) For the federal tax filing requirements, the IRS requires most exempt organizations to submit a version of the 990. The 990 must be submitted on the 15th day of the 5th month after an organization's fiscal year ends. For organizations with gross receipts under $50,000 a year in gross revenue, they would file a 990-N. For organizations with gross revenue of less than $200,000 with total assets also less than $500,000, they would file a 990-EZ or 990. And for organizations making over $200,000 with over $200,000 in total assets, they would file a 990 (IRS code §501(c)(3), 2022). Repairing Hope will be filing a Form 990. If organizations fail to submit these forms on time, they can face penalties and income tax liabilities. If an organization fails to file three years in a row, it will lose its tax-exempt status and be placed on a list by the IRS showing its loss of status. It is critical for nonprofits to keep on top of their annual filing requirements, as failing to do so can result in penalties or worse. Fortunately, both state and federal filing requirements can be completed on the same day, which helps to avoid confusion about when they are due. By
filing all necessary reports, nonprofits demonstrate that they are committed to honesty and integrity, and they enable themselves to continue fulfilling their mission. IRS. (n.d.). Exemption requirements - 501(c)(3) organizations . Internal Revenue Service. https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements- 501c3-organizations South Carolina Code Annotated. (2023). Title 33. Corporations, Partnerships and Associations. Chapter 56. Solicitation of Charitable Funds. Section 33-56-60. Filing of report of financial activities
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