New questions provide the opportunity for CPAs to guide and educate nonprofit directors and officers.

Tax-exempt organizations required to file federal Form 990, Return of Organization Exempt From Income Tax, which was expanded and revised beginning in 2008 tax years, now have some experience with the new requirements. They may have experienced much anxiety as they and their CPAs learned that the new Form 990 is not simply a numbers game. It is a direct effort by the IRS to make tax-exempt organizations follow some of the policy requirements that the Sarbanes-Oxley Act imposed on public companies and to otherwise require them to adopt best practices. Crafting and implementing these best-practice policies requires careful attention before preparation of Form 990 is started.

Furthermore, unlike most other tax returns, Form 990 is clearly in the public eye, due to its disclosure requirements. These features make preparing Form 990 a special opportunity for CPAs to serve nonprofit clients.

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