Approved Form 1023 Data Now Available Online

By Deb Nelson, CPA, Senior Tax Manager  Deb Nelson

In efforts to provide information about tax exempt organizations to the general public, the IRS has announced that data from previously filed and approved Form 1023-EZ applications will be available electronically.

The IRS released the streamlined exemption application in July 2014 to assist smaller organizations in obtaining tax-exempt status under 501(c)(3). Most organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible. The 1023-EZ contains limited information, but does include the following:

  • Name, address and phone number
  • Year-end
  • Employer identification number
  • Names of officers, directors and trustees
  • Whether the organization is a corporation, unincorporated association, or trust
  • Date of incorporation and applicable state
  • NTEE Code that describes intended activities as well as several yes/no questions about activities; such as whether or not compensation will be paid to any officers, directors or trustees
  • Type of classification – public charity or private foundation

This data will be updated quarterly on the IRS website and will allow taxpayers to more easily research information on tax exempt organizations. To read the full news release click here.

Properly Classify Your Workers in 2017

laurieBy: Laurie Hansen, CPA, Tax Manager

With all the changes that occur within an organization during the course of a year, it’s important to take a step back and review policies and procedures at the beginning of the year. For example, it’s critical that an organization classify its workers properly. Are your workers employees, or independent contractors?  Let’s take a look at the rules to make sure workers are classified in accordance with IRS guidelines for the coming year.

In general, a person will qualify as an independent contractor if the employer has the right to control or direct the result of the work, but not how or what will be done to achieve the end result. Conversely, in an employer-employee relationship, the employer has the right to direct and control the work done by the employee. Visit our website here for factors that are important in determining worker classification.

New Year Resolutions for your Accounting Team

By: Peggy E. Jennings, CPA, Partnerpeggy

If you are like me, you have already forgotten the promises made in the wee hours of 2017 meant to improve health, personal outlook and work habits. We might be forgetful when it comes to self-improvement, but it isn’t too late to consider some improvements to your accounting process that can find efficiencies to be enjoyed all year round.

Some things to consider for 2017:

  • Walkthroughs –determine how processes for transactions, information flow and approvals are actually working on a daily basis. The goal isn’t to create a fancy spreadsheet but to consider improvements to processes that can save valuable time. Challenge the adage “we’ve always done it this way” to determine the most efficient means to achieve the tasks.
  • Ask questions – is this process necessary? Does it add value? Can it be automated? Is there a duplication of effort between teams? Is anyone using the output? Are roles and responsibilities appropriate?
  • Document – after evaluating existing processes and procedures, documenting any updates to existing policies, or creating policies in areas where little documentation existed previously, will provide a tool for staff to utilize in successfully implementing the procedures. Such documentation can also be incorporated into training materials.
  • Training – after you have determined the most efficient means to achieve tasks and have created new and improved processes, take the time now to fully training your personnel in the new processes so that all can be successful in their positions and responsibilities.
  • Develop process metrics – a good way to measure success is by measuring activity. Consider what metrics can be tracked, such as number of invoices processed, number of days in cycle time (invoice date to approval date), number of manually processed payments, number of invoices processed electronically

Reward success! Change is not easy and it takes a lot of effort to change established processes even when the personnel involved are fully on-board. Listen for needed tweaks to the new processes (internal controls are never final) and take the time to recognize achievement.

Here’s to an efficient and successful 2017!