This course will provide tax practitioners with an overview of Form 990-PF, which includes discussing the differences between non-operating and operating foundations. It is important that preparers understand the different private foundation excise taxes including taxes on net investment income, self-dealing, failure to meet income distribution requirements, excess business holdings and taxable expenditures. This course will help preparers understand the significance of columns (a)-(d) in Part I of the form, as well as expense allocation in Part I, which includes allocation of indirect costs between net investment income and charitable expenses. There also will be an overview of the income distribution calculation. This course will cover expenditure responsibility requirements for foreign grants.
Recognize transactions the excise tax rules that are applicable to private foundations:
IRC Sec. 4940: Excise tax based on investment income
IRC Sec. 4941: Taxes on self-dealing
IRC Sec. 4942: Taxes on failure to distribute income
IRC Sec. 4943: Taxes on excess business holdings
IRC Sec. 4944: Taxes on investments which jeopardize charitable purposes
IRC Sec. 4945: Taxes on taxable expenditures
Determine which sections on the Form 990-PF are required only for private operating foundations.
Outline how the 1% vs. 2% excise tax on net investment income is determined.
Show the average fair market value calculation for cash and securities.
Recall the additional reporting requirements for foreign grant expenses.
Define the unrelated business income tax.
Excise taxes paid by private foundations
Calculating the fair market value of the foundation's assets
Income distribution requirements
Transactions with disqualified persons
Foreign grant making
Unrelated business income tax
CPAs, attorneys and consultants who work with private foundation clients.
Advanced Prep: None
Speaker: Richard Ruvelson, J.D.
Field of Study: Tax
CPE Credit: 4 Hours
Meet the Speaker:
Richard has nearly 30 years of experience in providing tax services to nonprofit clients, including public and private colleges and universities, hospitals and hospital systems, supporting organizations, private foundations, and religious and cultural organizations. He has worked closely with clients on a wide range of nonprofit issues including tax exemption, unrelated business income tax, charitable giving and substantiation, independent contractor issues, and Form 990 reporting.