- April 28, 2021
- Posted by: The Mauldin Group
- Category: Blog
Tax season for nonprofits and faith-based organizations
As April comes to a close, the 2021 tax deadline is approaching. The IRS filing deadline for Form 990s is Monday, May 17, 2021. With that date nearning, nonprofit organizations now have less than a month to submit the proper forms necessary. This may be an overwhelming or stressful time of year for not-for-profit organizations; below is a brief guide about this tax season to help nonprofit organizations across Atlanta.
Preparing your organization before the tax deadline
1. File the proper forms
Tax-exempt organizations qualified under 501(c)(3) status, in most cases, must file IRS Form 990. When filed correctly, Form 990 allows organizations to transparently inform donors about financial, operational, and program-related information. Thus, when filed accurately, Form 990 can be an asset for nonprofit organizations in fundraising efforts.
Forms 1023 and 1024
Newly established not-for-profit organizations will be required to file either a Form 1023 or 1024 to obtain tax-exempt status.
As a part of the Employee Retirement Income Security Act (ERISA), Form 5500 is for employers maintaining an employee benefit plan, including health, welfare, and retirement plans.
2. Be organized
As with any task within your organization, you will achieve the best results with a set plan in place. Assess all assignments that need to be completed and, accordingly, assign roles to capable and available individuals. Ensure the work will be done diligently, thoroughly, and accurately. By setting clear deadlines, your team will operate on a suitable timeline to meet the May 17 deadline.
3. Hire a qualified firm
Not all nonprofit organizations have the in-house personnel or resources to comprehensively report to the IRS. If your nonprofit or faith-based organization has any hesitations or uncertainties about the filing process, we advise that you seek assistance from a qualified financial services firm. BMC is an accounting and CPA firm serving the Atlanta area that has extensive experience helping nonprofits with their tax needs.
Most accountants work with numbers; we work with people.
Contact BMC for Atlanta’s trusted nonprofit tax help
Brooks, McGinnis & Company, LLC is a Firm providing financial accounting services to the Metro Atlanta area. Serving nonprofits, our tax services help organizations across the Atlanta area. Our team of more than 40 experienced accountants and CPAs uphold the mission and vision of BMC, which aligns with the standards and goals of every client. Your organization’s success is our priority.
“We have been working with Brooks, McGinnis and Company since 1994. Brooks, McGinnis and staff have a deep understanding and accounting knowledge of the nonprofit industry including the Automated Church Systems accounting software, which is what many churches use for finances. We can go to them with any question and, with the highest degree of integrity and professional care, they are always straightforward and honest about our accounting procedures and practice. Brooks McGinnis and staff know their clients and are timely in responding to any inquiries that we may have. A heartfelt thank you to our CPA for creating a warm and inviting working relationship with us.”
Pamela Varner Woodson
Business Administrator, First Baptist Church of Tucker