For 2011 I will be handling one nonprofit or two (that's a question) for a guy who has for several years had me doing his three S Corps and 1040. There is a bookeeper and there are two boards and I will in the fullness of time be meeting all these people but right now all I have met is the guy who is founder and Executive Director. He's very good at what the nonprofits do and he's very good with people and advertising and fundraising but he's not so hot at taxes and legal issues. He tells me that as best he understands it, A is what he calls a determined nonprofit by which he means that it applied for and was granted 501 (c) status and that B is a venture of A with its own board. He doesn't know if B has its own EIN but what he is sure of is that B has never applied for nonprofit status even though it reports as a nonprofit and there has over the years not been a problem. He's not sure whether they report to the IRS as one or two. The reporting for years before 2011 was done by a CPA Firm which in his mind became unresponsive to his questions so after getting the answers from me with citations to the IRS website he fired them and asked me to take on his nonprofits.
Is there anything contradictory in the story as I understand it? What if anything that is not here do I need to know before I can determine whether they should file together or separately and should they file together or separately? Does anyone have any other advice? I am about to take the PES self study on nonprofits so I may think of more questions and I know this board will be here for me. Thank you for all replies.
Is there anything contradictory in the story as I understand it? What if anything that is not here do I need to know before I can determine whether they should file together or separately and should they file together or separately? Does anyone have any other advice? I am about to take the PES self study on nonprofits so I may think of more questions and I know this board will be here for me. Thank you for all replies.
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