Hiring a nonprofit return preparer: include review of the public copy

Have a qualified preparer determine which U.S. annual return and related filings apply to the organization. Provide its status, activities, prior filings and relevant changes. The engagement should name the forms, jurisdictions and periods rather than assume every nonprofit has the same reporting obligation.

Ask about experience with organizations having comparable activities and transactions. Verify relevant qualifications and the professional responsible for preparation. IRS guidance distinguishes preparer credentials and representation rights; if later examination support is needed, request that service separately instead of assuming it accompanies annual preparation.

Assign owners for financial records, program descriptions, governance questions, compensation information and related-party facts as relevant to the required return. The accountant cannot establish every organizational fact from the ledger. Management should know which responses require board, legal or operational input.

Ask the preparer to identify inconsistencies between the financial schedules and narrative responses. Define how questions are resolved and how material judgments reach the authorized reviewer. A completed questionnaire is a source of representations, not proof that each answer has been independently verified.

IRS guidance states that exempt organizations generally must make certain annual returns and exemption applications available for public inspection and provide copies. The exact documents and exclusions depend on the organization's circumstances. Ask the preparer to identify the applicable public package and any information that should be handled differently under those rules.

Require management to review descriptions and figures in the context in which they will appear. Program claims should be factual and consistent with the organization's records. The purpose is accurate reporting, not editing the return into a promotional document or obscuring required disclosure.

Agree who prepares and retains the public copy, who handles requests and whether website posting support is included. Avoid publishing a preparer's internal working file or an unreviewed draft. Obtain advice on any uncertainty about redaction or required disclosure before release.

Set internal dates for management and any planned board review that leave time for questions and corrections. Ask whether a walkthrough is included and who attends. The final authorization should refer to an identified version so narrative changes made late in the process do not escape the agreed review.

Specify the fee treatment for missing records, revised activities information and additional schedules. Distinguish correction of preparation work from new facts supplied after the package was accepted. Keep any unrelated business tax, state registration or specialist matter explicitly included or assigned elsewhere.

At completion, obtain the filed return package, relevant submission evidence, accepted public copy and unresolved-item record. Confirm who monitors later correspondence and which assistance requires a new engagement. A routine preparation fee should not be interpreted as unlimited representation.

Ask how the provider will distinguish the copy authorized for public release from the complete internal file. Use clear file names and access permissions so staff responding to a request can retrieve the approved document without guessing.

Keep the final narrative and financial sources available for the following year. Record organizational changes that affect future answers. The service should leave the nonprofit able to explain both its filed information and the version made publicly available, without relying on a former employee's recollection of how a sensitive answer was approved.