All About Form 990-W: Drenen Financial Services Can Help!
Form 990-W, also known as the Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations, can be confusing to manage. Therefore, at Drenen Financial Services, we specialize in helping tax-exempt organizations understand and file this form correctly.
Call Drenen Financial Services at 413-569-0015 or email us at office@drenenfs.com to schedule an appointment. Visit drenenfs.com for more information.
What is Form 990-W?
Form 990-W helps tax-exempt organizations estimate and pay quarterly taxes on unrelated business taxable income (UBTI). Therefore, this income often includes activities not directly related to the organization’s primary purpose.
Examples of UBTI include:
- Advertising revenue in publications
- Rental income from debt-financed properties
- Sales of merchandise unrelated to your organization’s exempt purpose
For more details on UBTI and how it affects your tax-exempt status, consult the IRS’s guide on Unrelated Business Income Tax.
Filing Requirements for Form 990-W
Tax-exempt organizations need to file 990-W if they expect their annual UBTI to be $500 or more.
Important Filing Points:
- Quarterly Payments: Estimated tax payments are due quarterly: April 15, June 15, September 15, and December 15.
- Safe Harbor Rule: Therefore, avoid penalties by ensuring your estimated tax payments meet the safe harbor requirement.
Visit the IRS’s instructions for Form 990-W for comprehensive filing guidelines.
How Drenen Financial Services Can Help
Navigating 990-W can be challenging. However, at Drenen Financial Services, we have the expertise to guide you through the process.
Our Services Include:
- Determining UBTI: We’ll help you accurately identify and calculate unrelated business taxable income.
- Quarterly Tax Estimates: We’ll ensure your quarterly tax estimates are accurate and meet IRS requirements.
- Filing Compliance: Therefore, we’ll guide you through the 990-W filing process, ensuring compliance and helping you avoid penalties.
Contact Drenen Financial Services Today
Don’t let Form 990-W overwhelm you. Instead, let Drenen Financial Services help you manage your estimated tax payments with ease.
Call Drenen Financial Services at 413-569-0015 or email us at office@drenenfs.com to schedule an appointment. Visit drenenfs.com for more information. Let us help you stay compliant and focus on what matters most—your organization’s mission.
