non profit 501c first year other CPA used wrong method of accounting and change - Spidell

non profit 501c first year other CPA used wrong method of accounting and change

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Message Board non profit 501c first year other CPA used wrong method of accounting and change

  • This topic has 3 replies, 2 voices, and was last updated 2 weeks, 1 day ago by Elizabeth Gobble.
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    • #265802
      Elizabeth Gobble
      Participant

      i have a non profit (not 990T filer)  that we have to amend 2018 initial for a variety of reasons as the return is not correct for a variety of reasons which are substantial.

      But that being said one major item is the cpa said the method of accounting was cash but it is not the organization maintains its books on accrual in their online accounting software as well as what they present to possible funders.

      therefore the return should have been reported accrual. do you believe we can amend the 2018 return before we file 2019 and mark accrual as in this case they used an impermissble method as it didnt agree with the books and records i see that as the only option in my research.

      otherwise i would assume i file with cash basis and we have to file 3115 for automatic change before due date 2019 extended.

    • #265806
      Diane White
      Participant

      According to my sources, technically it is not a change in accounting method requiring Form 3115 to filed, it was a reporting error. It was suggested to amend the 2018 return with the correct method indicated. Attach a statement to the amended return explaining the error. Were the amounts reported on the accrual basis regardless?

      • #265825
        Elizabeth Gobble
        Participant

        actually no they used cash basis and no one at the organization undersstands why  of course they don’t have UBIT or anything of income tax consequence, but still i want to do this correctly and honestly there are so many other things wrong – IE filed 990 ez and should have been 990 as has donor advised funds and incorrect and incomplete schedule a

    • #265824
      Elizabeth Gobble
      Participant

      actually no they used cash basis and no one at the organization undersstands why  of course they don’t have UBIT or anything of income tax consequence, but still i want to do this correctly and honestly there are so many other things wrong – IE filed 990 ez and should have been 990 as has donor advised funds and incorrect and incomplete schedule a

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