Common questions for exempt organizations (Form 990, 990-PF, or 990-T) in ProConnect Tax

Per Form 990 instructions, PPP Loans are entered as contributions from a governmental unit in the tax year that the amounts are forgiven. They can be entered as government grants:

1. Go to the Input Return tab.
2. On the left-side menu, select Revenue ⮕ Contributions, Gifts, and Grants ⮕ Contributions, Gifts and Grants.
3. Input the amount in the Government grants field.

In tax year 2018, IRS instructions for Schedule B changed.

• Many organizations aren't required to report the names and addresses of donors on Schedule B.
  • Only section 501(c)(3) organizations and section 527 organizations must still report this information.
• The program will automatically suppress donor information on Schedule B when it's not required based on the organization type entered on the General ⮕ Client Information screen.
• See IRS Instructions for Schedule B for additional information.

The most common answer to this question is that overrides were entered, prohibiting a statement from generating.

1. Go to the Check Return tab and click on Suggestions, on the left, to view a list of entered overrides.
2. For income items, the overrides are likely on the Revenue ⮕ Other Income Producing Activities screen.
3. Expenses may be overridden on the Expenses ⮕ Functional Expenses screen.
4. Balance sheet items may be overridden on the Balance Sheet ⮕ Balance Sheet screen.

Form 4562 isn't required for Form 990 or 990PF since the depreciation is a book deduction and not a tax deduction. You can force Form 4562 to generate:

1. Go to the Input Return tab.
2. On the left-side menu, select General ⮕ Misc. (990-N, 990, 990-PF, 990-T)
3. Scroll down to the Return Options section.
4. In the field Form 4562 options: 1=when applicable, 2=force [Override], enter 2.

Schedule A is only required for certain organizations. There are 3 ways to indicate that Schedule A is required:

• Method 1:
  1. Go to the Input Return tab.
  2. On the left-side menu, select General ⮕ Client Information
  3. Scroll down to the Return Info section.
  4. In the 501(c) Paragraph No field, select 3=Charitable, Religious, etc.
• Method 2:
  1. Go to the Input Return tab.
  2. On the left-side menu, select General ⮕ Client Information
  3. Scroll down to the Return Info section.
  4. Check the box 4947(a)(1) Nonexempt.
• Method 3:
  1. Go to the Input Return tab.
  2. On the left-side menu, select General ⮕ Misc. (990-N, 990, 990-PF, 990-T)
  3. Scroll down to the Form 990 Miscellaneous section
  4. Check the box Section 501(e), 501(f), 501(k), or 501(n) org.

Multiple pieces of information affect this checkbox. Verify the following items:

1. Go to the Input Return tab.
2. On the left-side menu, select General ⮕ Client Information
3. Scroll down to the Return Info section.
4. Type of Return is set to 1=990/990-EZ, and 501(c) Paragraph No is set to 3=Charitable, etc.
5. Schedule A, Part 1, box 5, 7, or 8 is checked.
   • Inputs can be found on the Form 990 Schedules ⮕ Charity Status & Support (Sch. A) ⮕ Reason for Public Charity Status screen.
6. The organization must also pass the 33 1/3 percent rule on Schedule A, page 2, line 14.

The most common reason is that the organization didn't have more than $5,000 in assets during the year. See How to generate Form 990-PF, Part XV in ProConnect Tax for more information.

1. Go to the Input Return tab.
2. On the left-side menu, select General ⮕ Misc.(990-N, 990, 990-PF, 990-T)
3. Scroll down to the Form 990-PF Miscellaneous section.
4. Check the box Do not complete Part I, col. (c) - Adjusted Net Income.

Page 4 of the 990-T instructions state that if Part I, line 13, column A is more than $10,000, complete all lines and schedules that apply. If line 13, column A is $10,000 or less, complete Part I, lines 1-13, column A. Schedules A-K aren't required.

1. Go to the Input Return tab.
2. On the left-side menu, select General ⮕ Client Information
3. Scroll down to the Return Info section.
4. Make a selection other than 1=N/A in 990-T Return Type.

1. Go to the Input Return tab.
2. On the left-side menu, select General ⮕ Client Information.
3. Scroll down to the Return Info section.
4. Select 1=N/A from the 990-T Return Type drop-down menu.
5. Verify 990-T Other Exemption also indicates 0=N/A.

Per the 990-T form instructions, Schedule J will only generate when gross income is more than $10,000.

1. Go to the Input Return tab.
2. On the left-side menu, select Revenue ⮕ Advertising Income (990-T).
3. Enter the Name of periodical.
4. Enter a 1 or 2 in 1=income reported on a consolidated basis, 2=income reported on a separate basis.
5. Make an entry in at least one of the fields:
   • Gross advertising income
   • Direct advertising costs
   • Readership costs
   • Circulation income