United Way of Metropolitan Tarrant County

1. United Way of Metropolitan Tarrant County 2010 Form 990 and other Tax Related Issues

2. Form 990: 2010 Changes Part I, Line 5: Total number of individuals employed in calendar year 2010. Clarifies that the is an annual disclosure and not a period disclosure.

3. Form 990: 2010 Changes Part IV Checklist for Required Schedules. Question 5: for 501(c)(4), (5) and (6) organizations they must fill out Schedule C in regards to dues notices. Question 12(b): Schedule D reconciliations of net assets, revenues and expenses are optional unless separate audited financials are prepared.

4. Form 990: 2010 Changes Part IV Checklist of Required Schedules Questions 15 and 16: Grants and assistance to organizations or individuals located outside the United States. Schedule F, Section IV is required to be filled out. Additional details regarding payments and activities. Further guidance is expected.

5. Form 990: 2010 Changes Part IV Checklist of Required Schedules Question 20(b): Hospitals are required to submit a copy of their audited financials along with the Form 990. Implied requirement for all non-profit hospitals to have audited financials.

6. Form 990: 2010 Changes Part IV Checklist for Required Schedules Question 35, Additional detail is required for payments or transactions involving controlled for-profit entities on the Schedule R, Part V.

7. Form 990: 2010 Changes Part V and VI: A box has been added to the top of each section specifically asking is Schedule O detail has been provided for any of the questions asked in these sections. Again, the IRS wants detailed narratives in response to questions requiring explanation.

8. Form 990: 2010 Changes Part V Statements Regarding Other IRS Filings and Tax compliance Question 13(a)-(c): Introduces the Qualified Nonprofit Health Insurance Issuers under 501(c)(29) Question 14: Provision of Indoor Tanning Services Patient Protection and Affordable Care Act

9. Form 990: 2010 Changes Part VII Officers, Directors, Trustees, Key Employees and Highest Compensated Employees Subtotals have been added at the end of the table to bring over data from J-2 and more easily reconcile total officer compensation.

10. Form 990: 2010 Changes Part IX Statement of Functional Expenses Line 24 Miscellaneous Expenses, Line f “all other expenses”. The ceiling has been raised from 5% to 10% of total expenses. Part XI Reconciliation of Net Assets This has been moved from Schedule D to the core form after the balance sheet disclosure.

11. 2009 Main Issues Revisited Combined audited financial statements create so much confusion with separately filed Form 990s that revenue and expense reconciliations are now optional unless separate audited financials are available.

12. 2009 Main Issues Revisited Leased Employees are considered employees of the reporting organization for purposes of salary disclosure and W2 disclosures. The opportunity for a review of the Form 990 by the members of the governing body and not a formal review or presentation prior to submission to the IRS.

13. 2009 Main Issues Revisited Officers are those individuals with day to day responsibility for either the operations or the financial information of the organization. Regardless of title. Key employees are not officers, have salary >$150,000 and meet the responsibility test. Highest Compensated Employees are not officers or Key Employees and have compensation >$100,000.

14. 2009 Main Issues Revisited Schedule G: Additional detail is required for Fundraising and Gaming expenses. Specifically, entertainment, food and beverage must be broken out from the total direct expenses. Directly related to quid pro quo disclosures. Schedule F: guidance suggest expanded exposure to potential filing requirements for activities outside the United States.

15. 2009 Main Issues Revisited Publicly Traded Partnerships, Hedge Funds and Alternative Investments. 990-T Unrelated Business Income Form 8886 Reportable Transaction Disclosure TD F 90-22.1 Report of Foreign Bank and Financial Accounts

16. FIN 48 (ASC 740) Activities or Programs not explicitly included on your Form 1023. All compensation arrangements that do not meet the criteria for a rebuttable presumption Lobbying, political activities and advocacy Partnerships, Hedge Funds, Alternative Investments

17. FIN 48 (ASC 740) Unrelated Business Income expense allocations. Uncertainty is directly proportional to the degree of income tax exposure. Public Support calculations As a tax exempt entity, everything you do is a tax position. The issue is with Uncertainty.

18. PPACA and Other Developments Beginning in 2011, amounts of employer sponsored health insurance coverage for qualified health insurance plans will be disclosed on the employees W2. This does not include Archer MSA, HAS or FSA accounts, Disability Insurance, Long-Term Care Insurance, Indemnity Insurance or stand alone Dental/Vision Plans.

19. Beginning in 2012, 1099 reporting is expanded to include payments for inventory, materials, equipment and merchandise. Corporate recipients are no longer excluded from the 1099 reporting requirements. PPACA and Other Developments

20. QUESTIONS?