Re: [taxchat] Fixed Assets

Steve,

 

Since this is a not for profit, I would suggest making all changes in the current year and show the net amount of the adjustments as Prior Period Adjustments on the Funds Provided Statement with supporting schedule showing details.  This will save the client a lot of money.  If IRS doesn't like it or amounts are too material, then you could amend each year.

 

Arnie

----- Original Message -----

From: steve_pmts

To: taxchat@yahoogroups.com

Sent: 12/16/2008 7:58 AM

Subject: [taxchat] Fixed Assets

I have a new non profit 501c3 client who came to me because loans made to another non
profit were being carried as expenses in their bookkeeping and their cpa tax preparer had
not done anything about it. They knew it was wrong, didn't know how to fix it and were
fed up with the complacency of the cpa. I have to amend returns back to 2004 and
everything has changed on the returns as one of their officers has, since most of these
returns were filed, "fixed" the books. Quickbooks is set to maintain only 4 backups so I
can't restore from the backups. If any one has some general words of advise about this
situation, I would appreciate it.

However, it gets better. There are assets dating back to 1981, original cost totaling
$291,000, that have never been properly disposed of. They are completely depreciated.
Some of them are vehicles that were used as trade ins and the like. As far as I can tell the
new vehicle was simply added at full cost. Some of these assets were just equipment that
was no longer useable, given to members or sold for small amounts. The beginning value
for for land, buildings, and equipment on the 990 reflects all these assets as still being
current. How do I remove these assets since the most recent transaction for these assets
is 2000? Their records prior to 2000 are incomplete and some of this information is from
what people remember so amending returns back to whenever is not a viable option.

Happy Holidays!

Thank you

Steve Webber

Arnie Socol
President
Ways & Means, Inc.
845-562-6070

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