Article | NFP tax

Form 990 automation – it’s here!

Jan. 18, 2024

Not-for-profit organizations face a unique challenge when compiling data for Form 990 completion. The extent of information necessary for collection, along with the dependence on numerous departments and individuals for data, can lead to organizations receiving inaccurate and/or incomplete information from employees. These instances can contribute to an inefficient process that can result in out-of-scope fees and delayed filings.

To help minimize the impact of clients collecting information from multiple sources and to offer more real-time guidance on the required information, Baker Tilly has associated with a third-party software provider. This engagement aims to enhance the client experience throughout the Form 990 tax compliance process, from information gathering through review.

Baker Tilly’s not-for-profit tax practice introduces C-Trac, a tax preparation software that integrates information, collection and preparation of tax-exempt information returns into one seamless activity. Information will be inputted into the software by the client, who can then view the information in Form 990 instantly. The ability to see the end results of their information input provides clients with a greater understanding of the requirements Baker Tilly tax professionals request and why data is tailored to the presentation in Form 990.

NFP organizations that work with Baker Tilly can expect a greater understanding of this important document, adding value to the client compliance process, as our tax professionals will be able to focus more time on higher-level reviews. Enhanced features include online analysis of unrelated business income (UBI) generated by partnership investments and the associated state return reporting, which reduces the complexity of reporting state sourced UBI and the state returns that need to be generated. Utilizing technologies such as enhanced tax software to improve the client experience is what makes Baker Tilly a leading CPA firm and Value Architect™.

For more information about C-Trac, or to learn more about how Baker Tilly’s NFP tax team can help your organization, contact our team.