Steering clear of landmines – 7 areas of IRS Form 990 audit scrutiny

Description

Abstract: The IRS can initiate an audit of a nonprofit organization for any number of reasons. But perhaps the most common is a red flag sent up by an organization’s annual filing of Form 990, “Return of Organization Exempt From Income Tax.” This article looks at the potential trouble areas and how nonprofits can reduce their audit risk. A short sidebar explains the difference between correspondence and field audits.