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Nonprofit Tax Services

File Your Taxes with Confidence

Navigate the complexities of nonprofit taxation in Chicago and nationwide with SSL Associates. Our tailored tax solutions ensure compliance and optimize financial resources to empower nonprofits to focus on their mission-driven goals with confidence.

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What Are Some Common Tax Issues that Nonprofit Organizations Face?

  • Unrelated Business Income Tax: Nonprofits may face taxes on unrelated business income that require careful management and planning to navigate.
  • Tax-Exempt Status: Compliance with IRS rules is crucial to maintaining tax-exempt status.
  • Form 990 Errors: Accuracy on Form 990 is vital to avoid penalties and regulatory scrutiny.
  • Benefits: Nonprofits must avoid providing excessive or discriminatory benefits to insiders to retain tax-exempt status.
  • Donor Reporting: Proper donor acknowledgment and reporting are essential for tax-deductible contributions.
  • State and Local Taxes: Nonprofits must navigate complex state and local tax obligations.
  • Employment Taxes: Compliance with federal and state employment tax requirements is necessary.

Advocacy Compliance: Nonprofits engaging in lobbying or political activities must adhere to IRS regulations.

Our Non-Profit Tax Services

Our comprehensive non-profit tax services are designed to meet your organization's unique needs and ensure compliance with complex tax regulations. Our services include but aren’t limited to:

Tax Return Preparation (Form 990)

We ensure accuracy and adherence to complex non-profit tax regulations which saves you time and minimizes errors.

Tax Compliance

Comprehensive assistance in navigating IRS regulations and maintaining tax-exempt status to minimize risks of penalties and loss of tax-exempt privileges.

IRS Audit Representation

Experienced representation and guidance throughout IRS audits to ensure smooth resolution and safeguard nonprofit interests.

Unrelated Business Income Tax (UBIT) Management

In-depth analysis and strategic planning to minimize tax liability associated with unrelated business activities.

Tax Planning and Strategy

Tailored tax planning strategies to enhance financial efficiency, minimize tax burdens, and support long-term organizational sustainability.

State Tax Compliance

Guidance and support in meeting state tax obligations, including sales tax, property tax exemptions, and compliance with state-specific requirements.

Nonprofit Tax Consulting

Dedicated consulting services to address tax-related inquiries and provide strategic advice.

Charitable Giving Strategies

Customized strategies to maximize the impact of charitable giving programs to foster donor engagement and support fundraising efforts.

Tax-Exempt Status Maintenance

Proactive measures and ongoing support to maintain tax-exempt status, including compliance with reporting requirements and regulatory changes

Multistate Tax Considerations

Expertise in navigating complex multistate tax issues, ensuring compliance with varying state tax laws and minimizing tax risks for nonprofits operating across multiple jurisdictions.

Ensure Compliance – Contact Us Now!

Let our experienced CPAs handle your nonprofit tax needs. We guarantee compliance and partner in your organization's mission-driven success. Contact us today!

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(630) 819-6040

What Types of Tax Returns Do Nonprofit Organizations Need to File?

Nonprofit organizations typically need to file various tax returns, including:

Form 990

Annual information return filed by most tax-exempt organizations to report financial information and activities to the IRS

Form 990-EZ

Simplified version of Form 990 for smaller nonprofits with gross receipts below a certain threshold.

Form 990-N (e-Postcard)

(e-Postcard): Electronic filing for small tax-exempt organizations with gross receipts under $50,000.

State Tax Returns

Various state tax filings required based on nonprofit activities and state-specific regulations.

Local Tax Returns

Local tax filings, such as property tax exemptions or business taxes, depending on jurisdictional requirements.

Payroll Tax Returns

Employment tax filings, including Form 941 for federal payroll taxes and state withholding tax returns.

Information Returns

Forms such as 1099-series for reporting payments to vendors, contractors, and other individuals.

Foreign Reporting Requirements

Certain international tax filings for nonprofits with foreign operations or investments. Ensuring compliance with these tax obligations is key to maintaining tax-exempt status and avoiding penalties.

Why Choose SSL Associates for Your Nonprofit Tax Filing?

We encourage you to choose SSL Associates for nonprofit tax filing:

In Business Since 1986

Our team has extensive experience in nonprofit tax compliance to guarantee accurate and efficient filings.

Tailored Tax Solutions

We customize our services to meet the unique needs of each nonprofit organization.

Compliance Assurance

We stay updated on the latest tax laws and regulations to ensure full compliance.

Dedicated Support

We provide personalized support and guidance throughout the tax filing process.

Nationwide Assistance

Wherever your nonprofit is located, we offer comprehensive tax assistance to organizations across the nation.

Hear It from Our Clients

Seamus Naughton, Lake Shore Glass

5.0

As the owner-operator of a construction company, my hours are spent focusing on the operational aspects of our business. Managing our year-end financials was an unwelcome challenge that was a large drain on my time. Having SSL Associates, Ltd. freed me to focus my attention where it best served my company, and gave me peace of mind that our accounting would be done accurately, professionally, and on time. Their ability to work hand in hand with our accounting department allows us to tackle problems as they arise throughout the year to ensure all tax & financial reporting deliverables are free of any last-minute headaches.

Steve Brown, VP Business, Sabre Hockey Association

5.0

SSL Associates, Ltd. has been an invaluable resource for our youth hockey non-profit organization. Their team's expertise in tax compliance and financial reporting has been instrumental in ensuring transparency and accountability to our many families, donors and stakeholders. Their commitment to excellence and their deep understanding of the non-profit sector have made them an indispensable part of our success and a valued partner that we trust and rely on for their guidance.

Kristin Newell, Director of Finance and Administration, Evolution Soccer Club

5.0

When we started the not-for-profit youth travel soccer club, we quickly grew large enough that we are required to be audited by an independent accounting firm each year. We have used SSL Associates Ltd. for the past seven years and couldn’t be happier with their services. SSL also helped us make improvements to our Quickbooks so that the Audit is now very efficient. Their responsiveness and expertise in non-profit accounting has enabled our staff to stay focused on our mission of providing a competitive and positive learning environment to develop our players both on and off the field.

Mark Huelskoetter

5.0

SSL Associates has been a trusted advisor to Wenzak for many years. Their knowledge and valuable insights around tax and reporting impacts of business issues has helped us to navigate key decisions and stay focused on our core business. We greatly appreciate the personal approach and responsiveness of the entire team.

FAQs

What is unrelated business income, and how does it affect nonprofit organizations?

Unrelated business income (UBI) refers to income generated by a tax-exempt organization from activities unrelated to its exempt purpose. Nonprofit organizations may engage in business activities that generate income, but if those activities aren’t substantially related to their tax-exempt purpose, the income may be subject to unrelated business income tax (UBIT).

UBIT can impact nonprofit organizations in several ways:

  1. Tax Liability: Nonprofits may be required to pay taxes on unrelated business income at corporate tax rates, similar to for-profit businesses.
  2. Compliance Burden: Nonprofits must accurately identify and report unrelated business income on Form 990-T and pay any associated taxes to the IRS.
  3. Risk to Tax-Exempt Status: Excessive or substantial unrelated business activities could jeopardize a nonprofit's tax-exempt status if the organization is deemed to be operated primarily for commercial purposes rather than for its exempt purpose.
  4. Complexities in Operations: Managing unrelated business activities can introduce complexities in financial management, compliance, and reporting for nonprofit organizations.
  5. Impact on Donor Relations: Donors and stakeholders may scrutinize nonprofits' involvement in unrelated business activities which can potentially affect public perception and donor confidence in the organization's mission and stewardship of resources.

To mitigate the impact of UBIT, nonprofits should carefully evaluate their business activities to make sure they’re substantially related to their exempt purpose. You can also seek guidance from tax professionals at SSL Associates who can help nonprofits navigate UBIT regulations and minimize tax liabilities while maximizing their impact in advancing their mission.

What are the filing requirements for Form 990, and who is required to file it?

Form 990 is an annual information return filed by most tax-exempt organizations to provide the IRS with information about their activities, governance, and finances. The filing requirements for Form 990 vary depending on the organization's gross receipts and total assets.

Generally, the following organizations are required to file Form 990:

  1. Organizations with gross receipts normally exceeding $200,000 or total assets exceeding $500,000 at the end of the tax year.
  2. Private foundations, regardless of their gross receipts or total assets.
  3. Organizations that are required to file Form 990-N (e-Postcard) but fail to do so for three consecutive years.

Additionally, certain organizations may be eligible to file a simplified version of Form 990, such as Form 990-EZ or Form 990-N, depending on their gross receipts and total assets.

It's essential for nonprofit organizations to understand their filing requirements and submit Form 990 accurately and on time to maintain compliance with IRS regulations and retain their tax-exempt status.