Common questions about Form 990, 990-PF, 990-T, and 990-N in Lacerte

Table of contents:

Generating/preparing a short-year return

Marking the return for a short year:

1. Screen 4.1, Misc. (990-N, 990, 990-PF, 990-T).
2. Scroll down to the Tax Year Information subsection.
3. Select the box Short tax year for depreciation (if applicable).
4. Enter the Beginning fiscal year date [O] (M/D/YYYY).
5. Enter the Ending fiscal year date [O] (M/D/YYYY).
6. Enter the number of months in Number of months if short year (for annualization).

E-filing the short year return:

1. Make a copy of the original return after it's been e-filed, and accepted.
2. In the newly copied return, clear the e-file Status;
   • From the E-File menu, select e-file Support Tools then Clear Return then Return.
3. In Screen 4.1, Miscellaneous, mark the checkbox for File 20YY short year return and enter the applicable Beginning fiscal year date [O] and Ending fiscal year date [O]
4. On Screen 1 make sure there are no states in the left column.
   • Delete any states listed here.
5. Review the return for accuracy.
6. Transmit the copied return.

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E-file questions for Exempt Organizations in Lacerte.

What forms can be e-filed for Exempt Organization returns (990, 990-T, 4720, states)?

• 990: Main form ✔ | Amended ✔ | Extension/Payment ✔
• 990-T: Main form ✔ | Amended ✘ | Extension/Payment ✔
• FBAR (114): Main form ✔ | Amended ✘ | Extension/Payment ✘
• Form 4720: Main form ✔ | Amended ✔ | Extension/Payment ✔
• California: Main form ✔ | Amended ✔ | Extension/Payment ✘
• Illinois: Main form ✘ | Amended ✘ | Extension/Payment ✘
• New York: Main form ✔ | Amended ✘ | Extension/Payment ✔

When to file?

File Form 990 by the 15th day of the 5th month after the organization’s year end (e.g., May 15 for calendar year). If due date falls on a weekend/holiday, file next business day. 990-series filers can extend 6 months (to November 15 for calendar-year filers). E-files transmitted before local midnight are timely.

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How to generate a public disclosure copy for Schedule B?

Lacerte can print a PUBLIC DISCLOSURE COPY of Schedule B:

• Page 1 shows “PUBLIC DISCLOSURE COPY” above the title.
• Other pages omit contributor names/addresses but show contribution data.

Method 1

1. Go to Screen 16.1 – Contributions, Gifts, and Grants.
2. Miscellaneous – Schedule of Contributors section.
3. Check Apply public disclosure copy.

Method 2

1. Settings → Options.
2. Items to Print tab.
3. Set Public Disclosure Copy of Schedule B to Yes.

Additional Information

• If neither condition is set, the complete filing copy (with personal info) is generated.
• The Items to Print setting is per return copy (Preparer/Client/Government). Forms view reflects the Preparer Review copy.
• Public Disclosure Copy cannot be e-filed; doing so triggers rejection SB-F990-013 (contributors’ details required).

Additional information can be found in the full article

Common questions about Exempt Organizations in Lacerte; Click here

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Form 990 Critical Diagnostic Reference 6574 unrelated gross income.

• The organization has unrelated gross income of $1,000 or more during the year covered by this return, and has not filed a Form 990-T tax return this year (ref #6574).

This diagnostic generates when one or more items of revenue worth $1,000 or more, are entered as unrelated business income. When the exempt organization has $1,000 or more of unrelated income, Form 990-T is required. Lacerte produces this diagnostic when it detects that Form 990-T is required, but isn't currently generated with the return.

You can clear this diagnostic by either removing the unrelated income or by generating Form 990-T.

To generate Form 990-T:

1. Go to Screen 1, Client Information.
2. Scroll down to the Return Info section.
3. From the dropdown menu select the appropriate 990-T return type.
   • The 990-T return should now be generated and the diagnostic cleared.

To resolve this diagnostic without generating Form 990-T:

1. Go to Screen 6, Information Questions to the section Compliance (990, Part V and 990EZ, Part V).
   • Scroll to the subsection Form 990 and Form 990-EZ and make sure there isn't a 1 entered in the field Unrelated business gross income of $1, 000 or more or lobbying proxy tax: 1=yes, 2=no, 3=N/A (3a) (35a) [O].
2. Go to Screen 17, Program Service Revenue.
   • Make sure there are no amounts entered in the Unrelated Business Income columns (codes 4, 5 and 6).
3. Go to Screen 18, Other Income Producing Act.
   • Scroll to the section Unrelated Business Income and make sure there are no entries.
4. Go to Screen 20, Other Revenue.
   • Make sure there are no entries in the Unrelated Business Income fields.
5. Go to Screen 22, Rental Income.
   • For each property, make sure there are no entries in the Unrelated Business Income fields in the General Information section.
6. Go to Screen 23, Other Investment Income.
   • Make sure there are no amounts in the Unrelated Business Income columns.
7. Go to Screen 24, Dispositions.
   • Select the Misc (C/O, CGD. Etc) link in the top-left menu.
   • Make sure there are no entries in the Capital Gain Distributions (1099-DIV) section, in the field for Unrelated business income (2a) (code 208).
8. Go to Screen 25, Fundraising and Gaming.
   • Select Gaming Information from the top-left menu.
   • For each event, make sure there are no entries in the Unrelated business income fields.
9. Go to Screen 26, Inventory Sales.
   • Make sure there are no entries in the Unrelated Business Income fields.
   • Make sure there are no entries in Screens 27, 28, 29, 30, 31 and 32.
10. Go to Screen 33, Income Overrides.
    • Select Unrelated Business Income Overrides from the left menu.
    • Make sure there are no entries on this screen.

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Filing Requirements for Form 990-EZ and 990-N.

Form 990-N (e-Postcard) requirements:

Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less can electronically submit Form 990-N if they choose not to file Form 990 or Form 990-EZ instead. Exceptions to this include:

• Private foundations
• Political organizations
• Supporting organizations

Refer to this IRS resource for more information on who can file Form 990-N.

To generate a 990-N return:

1. Go to Screen 1, Client information.
2. Under the Electronic Return section, check the box Federal.
3. Scroll down to the Return Info section.
4. In the Type of return field, select 990-N.

Form 990-EZ requirements.

Most tax-exempt organizations with gross receipts less than $200,000 and total assets at the end of the year less than $500,000 can file Form 990-EZ instead of Form 990. Exceptions to this include:

• Sponsoring organizations of donor advised funds
• Organizations that operate a hospital facility
• Nonprofit health insurance issuers
• Certain controlling organizations defined in section 512(b)(13)
• Private foundations required to file Form 990-PF
• Organizations filing group returns

Refer to the Instructions for Form 990-EZ for more information.

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Additional References.

Here are a few articles to answer other frequently asked questions about entering Form 990, Form 990-PF, 990-T and 990-N in Lacerte.

• Generating/Preparing a Short Year Return
• Common questions for Exempt Organizations in Lacerte
• Form 990 Critical Diagnostic Ref. 6574 Unrelated Gross Income
• Filing requirements for Form 990-EZ and 990-N

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