Nonprofit Advisor ▲

UHY Advisors Mid-Atlantic, Inc.

August 2008
Vol. 1 • No. 5

▲
6851 Oak Hall Lane Suite 300 Columbia, MD 21045 410-720-5220 Fax 410-381-2524 www.uhy-us.com

2008 Form 990

Best Practices Series
990 E-Filing
Tips
Whistleblower and Document by Carol Shepherd, Senior Staff
Retention Policies
By Matt Duvall, Senior Staff
E lectronic fil-
ing is now
common in the

A s promised
in the last
newsletter, I am
continuing my
series on helping
your organization
meet the IRS’ three
goals of the 2008
Matt Duvall Form 990.
At this point you’ve read my article
on developing a conflict of interest
policy, right? Well, now it’s time for
round two: developing whistle-
blower and document retention
policies. Unlike the conflict of inter-
est policy, these policies aren’t only
considered a “best practice,” they’re
required by the Sarbanes Oxley-Act
of 2002. The requirements to have
whistleblower and document reten-
tion policies aren’t breaking news,
nor are they new questions to the
Form 990; however, it never hurts to
brush up on what is required.
SOX, as it is affectionately referred
to in our firm, was the focus of
many classes I took when working
toward my masters degree. Since
that diploma is now collecting dust
somewhere in my basement, I
should be able to conjure up some of
the basics.
A whistleblower policy —
• encourages staff and volunteers to
come forward with credible infor-
mation on illegal practices or vio-
lations of adopted policies of the
organization,
• specifies that the organization will
protect the individual from retali-
ation, and
• identifies those staff or board mem-
bers or outside parties to whom
such information can be reported.
A document retention and destruc-
tion policy identifies the record
retention responsibilities of staff,
volunteers, board members, and
outsiders for maintaining and docu-
menting the storage and destruction
of the organization’s documents
and records. These requirements
aren’t just limited to paper docu-
ments; electronic files and voice-
mails are included, too.
continued on page 2
not-for-profit
world. Although
the IRS requires
certain exempt
organizations to
Carol Shepherd file their 990s elec-
tronically, it does not preclude the
average tax-exempt organization
from e-filing.
continued on page 2
WE HAVE YOUR
FINANCIAL SOLUTIONS
UHY has a full staff of account-
ing professionals who can pro-
vide excellent support to your
accounting department. If you
need to supplement your staff
with accounting clerks, book-
keepers or experienced CPAs,
just call us and we’ll help.
We also provide consultation
services, design of internal
controls, operating procedures
and accounting systems.

UHY Advisors brings specialists in nonprofit solutions in accounting and tax.

 August 2008
Vol. 1 • No. 5

Whistleblower and 990 E-Filing Tips

Document Retention continued from page 1
Policies
Your organization must e-file if either which allows for up to 30 pages of
continued from page 1
of the following conditions apply: explanations or descriptions.
Violating either of these laws can result
in heavy criminal penalties, including 1) Your organization has total assets • To sign the return, the taxpayer
fines or imprisonment, or both! of $10 million or more, and files at creates a PIN, which is recorded
least 250 returns annually. The 250 on the Form 8879-E0.
The AICPA’s website (www.aicpa.org) return threshold is usually passed
includes both a sample whistleblower through payroll-related filings. • If your organization is filing a short-
policy and a sample form to report year return or has a name change
and track any suspected misdeeds. 2) If you are a private foundation that that you cannot electronically file,
Independent Sector also provides files at least 250 returns annually. your organization is exempt from
some helpful hints to develop and If you fall into one of the above cat- any requirement to e-file.
strengthen your whistleblower policy. egories, or would like to e-file, here
And the National Foundation of E-filing is a quick, paperless way to
are some helpful tips on how to file your return if you sidestep the
Independent Business provides a keep your e-filed return from
good overview of what a document pitfalls. The all-new 2008 Form 990
bouncing back: as designed will make e-filing easi-
retention policy might include.
• The IRS requires complete address- er since it eliminates the need for
es for all contributors, contractors most attachments and has lots of
Here are some resources and board members. space for including information
you might find helpful. • Attachments to the 990 are not
within the form.

AICPA’s Sample allowed. Additional information For more information on e-filing

needs to be incorporated in the 990s, go to the IRS website at
Whistleblower Policy
return as a General Explanation, www.irs.gov/efile.
and Tracking Form
http://tinyurl.com/64hv9y

Independent Sector Not-for-Profit Industry

Whistleblower Guidelines
http://tinyurl.com/68h87m With the increasing complexity of laws and regulations,
it’s important for associations, foundations, charities, hospitals,
Independent Sector schools and other tax-exempt entities to seek out professionals with
Whistleblower and Document extensive experience in not-for-profit compliance issues.
Retention Guidelines ➤ Accounting/Assurance ➤ Sarbanes-Oxley Education
http://tinyurl.com/5nkcua ➤ Audit Reviews & Compilations ➤ Tax & Management Consulting
➤ Financial Management Consulting ➤ Cost Allocation Planning Assistance
Sarbanes-Oxley Act of 2002
➤ Internal Controls & Forensic Accounting ➤ Financial Forecasting Analysis
http://tinyurl.com/6agtng ➤ Compliance/Governance Capabilities ➤ Implementation of New

National Foundation ➤ Accounting Policies & Accounting Standards

of Independent Procedures Updates ➤ IRS Controversy
➤ Design, Implementation & Testing ➤ State, Federal & Local Tax Planning
Business Document
of Internal Controls ➤ Unrelated Business Income Tax Analysis
Retention Overview
http://tinyurl.com/5z6m98 For more information, contact Jennine Anderson at janderson@uhy-us.com

The statements contained herein are provided for informational purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal,
state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. Furthermore, such statements are not presented or intended as, and should not be taken
or assumed to constitute legal advice of any nature, for which advice it is recommended that you consult your own legal counselors or professionals.
UHY Advisors, Inc., provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors.” UHY Advisors, Inc.,
and its subsidiary entities offer services from offices across the United States. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent
CPA firm that performs attest services. UHY Advisors, Inc., and UHY LLP are independent U.S. members of Urbach Hacker Young International Limited.