Quick 990 Question

[dmj4]

I am doing a 990 for a fire dept. They have a 1099Misc for insurance payment for fire runs.
I wrote it in on Part VII, line 93, page 8 as "Related or Exempt Function Income. Does this appear to be the correct line?

Thanks!
dmj4

[Uncle Sam]

990 Question

Is the fire department a volunteer fire department, or one that's connected to a local government?

[dmj4]

It's a.................

It is a volunteer fire dept.

[Uncle Sam]

990 Question

That appears to be the most appropriate place.

But you really need to determine the terms of the insurance money - on what basis is the fire department paid this money? What circumstances must prevail to be given it? How is the amount determined?

To some extent there is state insurance department laws that predicate the nature of the payment.