Glossary

Form 990-PF – Return of Private Foundation (previously noted but critical for private foundations)

Form 990-PF is the annual IRS filing for private foundations, detailing finances, grants, investments, and governance. Accurate and timely filing (by the 15th of the 5th month after the fiscal year end) is crucial for maintaining tax-exempt status. Non-compliance leads to penalties, potentially including revocation of tax-exempt status. The form ensures transparency and accountability.

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Understanding Form 990-PF for Private Foundations

Form 990-PF, also known as the Return of Private Foundation, is a crucial document that private foundations must file with the IRS annually. This form provides detailed financial information about the foundation’s activities, assets, and grants, ensuring transparency and compliance with tax regulations.

Key Features and Components:

Form 990-PF requires private foundations to disclose information such as their financial activities, grants awarded, investments, and governance structure. It provides a comprehensive overview of the foundation’s financial health and operational practices.

Filing and Compliance Requirements:

Private foundations are required to file Form 990-PF with the IRS each year to maintain their tax-exempt status. The form must be submitted by the 15th day of the 5th month after the end of the foundation’s fiscal year. Failure to file or providing inaccurate information can result in penalties and jeopardize the foundation’s tax-exempt status.

Penalties for Non-Compliance:

Non-compliance with Form 990-PF filing requirements can lead to penalties imposed by the IRS. Penalties may include fines based on the foundation’s size and duration of non-compliance. In severe cases, the IRS may revoke the foundation’s tax-exempt status, resulting in significant financial consequences.

Importance in Tax Resolution and Compliance:

Form 990-PF plays a crucial role in ensuring transparency, accountability, and compliance for private foundations. By providing detailed financial information to the IRS and the public, foundations demonstrate responsible stewardship of their resources and uphold their tax-exempt status. Compliance with Form 990-PF requirements is essential for maintaining the foundation’s reputation and fulfilling legal obligations in the realm of tax resolution and financial compliance.

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