Tuesday, April 29, 2014
ACCOUNTING AID SOCIETY, WALSH COLLEGE PARTNERSHIP HELPS NON-PROFITS WITH TAX RETURN PREPARATION
Accounting Aid Society (AAS) and the Walsh College Accounting and Tax Student Organization (ATSO) are piloting a tax return preparation program to help resource-limited charities, nonprofit agencies, and other tax-exempt organizations in southeast Michigan maintain their tax-exempt status.
Federal tax-exempt status allows nonprofit agencies to apply directly for grant funds. Most foundation and government grants require 501 (c) (3) status, part of the Internal Revenue Code. The status also allows potential donors to make tax deductible contributions.
Most organizations exempt from income tax must file an annual information return. In the Pension Protection Act of 2006, the IRS was authorized to revoke the tax-exempt status of organizations that failed to file the required tax return (Form 990, 990-N, 990-PF or 990-EZ).
“Many tax-exempts operate with extremely limited resources or with such small budgets that just trying to keep their lights on is a struggle,” says Daniel S. Hoops, chair, Accounting and Taxation Department, Walsh College. “Complying with the IRS reporting requirements becomes secondary and, unfortunately, sometimes nonexistent.”
Accounting Aid Society, a nonprofit with more than 35 years of income tax preparation assistance, has a long history of working with individuals and organizations through various partnerships and collaborations in metropolitan Detroit.
“Expanding this support to our friends in the nonprofit community and partnering with the students at Walsh College is a win-win for everyone involved,” says Kathleen Hatke Aro, AAS president.
AAS and ATSO will combine their network of tax professionals and tax students to soften the IRS demands placed on tax-exempt organizations. For more information, contact Diana Goode, AAS controller, at firstname.lastname@example.org.
ACCOUNTING AID SOCIETY
Founded in 1972, Accounting Aid Society is a nonprofit organization who provides tax assistance and promotes the economic self-sufficiency of low to moderate income families, seniors and others in need through volunteerism and partnerships