Private Foundation Update & Form 990-PF (Currently Unavailable)

Author: Jane Searing

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC

Private foundations continue to face significant compliance challenges. This helpful two-hour on-demand course is presented by one of the country's leading tax-exempt organization practitioners Jane Searing, CPA, M.S. Taxation, offers a practical examination of the latest federal tax developments, compliance issues, and planning opportunities to help private foundations navigate today's compliance challenges. Searing, co-author of the Private Foundation Handbook and Compliance Guide published by Wolters Kluwer, will help you get up-to-date on the most recent developments and hear the latest on Form 990-PF reporting requirements.

Although private foundations use a variation of the Form 990, the Form 990-PF is a very different filing. The Form 990-PF has four primary purposes:
• Calculating and payment of the net investment income excise tax under IRC Section 4940
• Calculating and reporting qualifying distributions for charitable purposes as required by IRC Section 4942
• Calculating and reporting whether the foundation qualifies as an operating foundation
• Voluntary reporting whether there have or have not been any violations of the other IRC Section 4941 through 4945 private foundation rules.

This timely two-hour CPE course will provide you with an updated practical review of the Form 990-PF, discuss common transactions, pitfalls to watch for, and little understood reporting complexities. You will be lead in this discussion by Jane Searing, shareholder and leader of the exempt organization tax group at Clark Nuber, the award-winning CPA and consulting firm as well as one of the co-authors from Clark Nuber of the Form 990 Compliance Guide published by Wolters Kluwer.

Publication Date: March 2018

Designed For
Private foundation compliance officers, CPAs, enrolled agents, tax return preparers, tax attorneys and financial advisors who work with tax-exempt organizations.

Topics Covered

  • Private foundation tax reporting and challenges to the Form 990-PF
  • Purpose and layout of Form 990-PF
  • Alternatives for proper reporting of contributions and sales of appreciated stock under various accounting methods
  • Calculating the reduced excise tax rate on net investment income
  • What is and is not a deductible net investment expense
  • What does and does not count as a qualifying distribution
  • Reporting direct charitable expenditures
  • Grants to non-public charities and the additional reporting requirements
  • Tips for Board review of the Form 990-PF

Learning Objectives

  • Identify and apply key tax challenges impacting private foundations
  • Recognize practical updated understanding of the Form 990-PF and its purposes
  • Differentiate the questions and disclosures required on the Form 990-PF
  • Identify purposes of Form 990-PF
  • Recognize reasons it's difficult for private foundation to qualify for the 1% reduced excise tax
  • Identify when a foundation is required to file Form 4720
  • Calculate Adjusted net income (ANI) on Form 990-PF Part 1, column c
  • Differentiate relevant items for private nonoperating foundations
  • Recognize changes brought by the Bipartisan Budget Act of 2018
  • Identify how an organization should operate to be considered a private operating foundation
  • Recognize what capital losses are limited to on Form 990-PF, Part 1 and IV
  • Describe the number of years a private nonoperating foundation can carry forward excess qualified distributions
  • Identify when a foundation must use ANI for the income test
  • Differentiate tests required to qualify as a private operating foundation
  • Recognize the minimum investment return is not used for
  • Identify the requirements for stock that is donated to a private foundation
  • Identify when Form 990-PF, Part XI, MIR to Distributable Amount is not applicable to a private foundation
  • Recognize when the reduced tax on net investment income does not apply


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic experience with Private Foundations and Form 990PF.

Advance Preparation

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