|
8/19/08
IRS Releases three background Papers on Form 990 Redesign.
The recent IRS redesign of the Form 990 is the most
comprehensive change to the 990’s since its inception. The IRS
has posted three background papers explaining the changes to
the Form 990 and Instructions. The Background Papers include a
Summary of Form 990 Redesign Process, including an explanation
of the transitional relief available to smaller organizations;
Form 990, Moving From the Old to the New, includes guidance on
determining whether an organization must complete a particular
section; and Changes to April Draft Instructions. More
information is posted at
http://www.irs.gov/charities/article/0,,id=181089,00.html.
For the revised Form 990 Instructions (released on August 19,
2008) go to
http://www.irs.gov/charities/article/0,,id=185561,00.html.
12/20/07
The IRS has just released the newly redesigned form 990 exempt
organization return for tax year 2008
(to be filed in filed in 2009). 501(c)(3) charities and
501(c)(6) associations that exceed $25,000 in annual revenue
are required to file the form 990 each year. This redesign
represents the first major overhaul to the form in 30 years.
Incorporating hundreds of recommendations from the charitable
community, the new form is designed to enhance transparency,
promote tax compliance, and reduce the filing burden. The new
990 retains a core form with a long list of schedules.
Changes include:
·
More opportunity for an organization to describe its exempt
accomplishments and mission and explain its activities
up-front as well as throughout the document.
·
Major changes were made to the summary page, governance
section, and the various schedules, including schedules for
executive compensation, related organizations, foreign
activities, hospitals, non-cash contributions and tax exempt
bonds.
·
A checklist of schedules was added for clarity.
·
A graduated transition period allowing smaller organizations
to file the form 990 EZ instead of the 990 until they become
familiar with the new form. In 2009 (for 2008 returns) the
filing threshold will exclude organizations with gross
receipts under $1 million or total assets under $2.5 million.
The threshold will scale-down over three years to be set
permanently at $200,000 gross receipts and $500,000 total
assets.
·
Also for the 2010 tax year, the IRS will increase the filing
threshold for organizations required to file Form 990-N
(e-postcard return) from the new $25,000 in gross receipts to
$50,000.
·
The new 990 instructions are expected in early 2008.
IRS Form 990 Redesign & Schedules
IRS Press Release (Dec. 20 2007)
[IR-2007-204]
IRS Overview of Form 990 redesign
IRS Background paper on Form 990 redesign
IRS Discussion Draft (June 14, 2007)
9/12/07 Public Comments on IRS
Draft Form 990 Revisions- deadline September 14. The IRS
form 990 defines how we govern ourselves as charities. This is
the most significant restructuring of that form since its
inception. Your comments can help the IRS capture more useful,
relevant, and effective information and reduce reporting
burdens on small and midsize nonprofits. The public comment
period closes on September 14. Comments on the proposed
redesigned Form 990, schedules and related instructions are
due September 14, 2007. Questions and comments should be
e-mailed to the IRS at
Form990Revision@irs.gov or mailed to Form 990 Redesign,
ATTN: SE:T:EO, 1111 Constitution Ave., N.W., Washington, DC
20224.
For additional information go to
http://www.irs.gov/charities/article/0,,id=173106,00.html.
The IRS has received numerous comments regarding the Draft
Redesigned Form 990 released for public comment on June 14,
2007. Electronic and paper comments received as of the date
indicated are provided below. Additional comments will be
posted here on a periodic basis. Paper copies of comments
submitted electronically are not required. Electronic and
paper comments received as of the date indicated are provided
below.
Comments (June
14 - July 28)
Comments (July
28 - August 12)
Comments (August
13 – August 21)
Comments (August
22 - August 31)
Form Letter re: Schedule H (for Nonprofit hospitals)
8/29/07 ASAE Sign-on to ASAE
Letter By August 30 to Extend Public Comment Period for IRS
Form 990 Revisions. Has your organization commented on the
to the draft IRS form 990 revisions? Have you received
adequate opportunity to review the proposed changes and their
potential consequences for your organization? PANO wants to
know. The IRS Comment Period closes on September 14. What
would you do with an extension to the public comment period?
Sign-on to ASAE’s letter before August 30 and urge the IRS
to extend the public comment period for the recent draft
revisions to the IRS form 990. The ASAE sign-on letter
deadline is August 30.
8/15/07 Comments on IRS Draft
Form 990 Revisions Due September 14. The IRS form 990
defines how we govern ourselves as charities, and this is the
most significant restructuring of that form since its
inception. Your comments can help the IRS capture more useful,
relevant, and effective information and reduce reporting
burdens on small and midsize nonprofits. Your comments are
welcomed and strongly encouraged. The public comment period
closes on September 14.
7/16/07 Charities Respond to
IRS Draft Form 990 Revisions. The IRS’ recent release for
public comment of the revised Form 990 has allowed nonprofits
to help compose a document which assists both the IRS and
nonprofit filers. IRS notes that the revised Form 990 should
promote transparency, increase compliance, and ease the
reporting burden for filing organizations. The following
summary was written by NCNA and Independent Sector.
The newly released draft of the core form provides summary
information about an organization’s mission, finances and
fundraising expenses, and includes sections with new questions
on governance, compensation, and expenses. Several current
requests for attachment of additional information have been
deleted and others have been standardized on the new
schedules. Trigger questions on the core form direct
organizations to fill out more detailed schedules.
The revised Form 990 provides 15 schedules including
familiar questions or attachments from the old Form 990 that
have been moved or rearranged, and other schedules that are
completely new. Most charitable organizations would complete
Schedule A, which now includes more detailed questions about
how the filing organization qualifies as a public charity.
Schedule B still covers contributors. The other schedules are:
political campaign and lobbying activities (Schedule C);
supplemental financial statements previously disclosed through
attachments (Schedule D); private schools (Schedule E);
activities outside of the U.S. (Schedule F); fundraising
activities (Schedule G); hospitals (Schedule H); grants and
other assistance (Schedule I); supplemental compensation
information (Schedule J); tax-exempt bonds (Schedule K); loans
(Schedule L); non-cash contributions (Schedule M); information
on liquidation, termination or dissolution (Schedule N);
related organizations (Schedule R).
Since the drafts was release, charities and those who serve
charities are reviewing the document and submitting their
suggestions to the IRS on how the form can demonstrate
adherence to tax laws and ethical business practices while
providing a source of public information, but not adding an
undue burden in reporting. Additionally, the nonprofit groups
are drawing from their own experiences to provide information
on practical reporting thresholds which disclose information
as appropriate yet reduce superfluous data collection.
The nonprofit sector appreciates the IRS’ consideration in
soliciting comments and looks forward to future partnerships
regarding important filing considerations. NCNA and the state
associations are working with other national organizations to
submit comments on behalf of the sector – particularly small
and mid-size nonprofits. The comments period is tight and PANO
is working in partnership with NCNA and its state association
colleagues to ensure that the perspective of all nonprofit
organizations are adequately represented.
NCNA Offers
Conference Call with IRS on Revised 990’s- Space is Limited. Find out more about the new IRS
Form 990 revisions from IRS representative Theresa Pattara.
The National Council of Nonprofit Associations (NCNA) has
invited charities to attend a conference call on August 9,
2007 at 3:00 pm EDT. This is your chance to get answers to
your questions and offer your feedback directly to the IRS.
Your participation in this call will ensure that the IRS final
revision of Form 990 increases compliance, promotes
transparency, and minimizes the filing burden on charities.
Registration cost is only $10, but space is limited to the
first 90 registrants. Sign up today at
http://givevoice.org/ncna/events/ncna990call/details.tcl.
7/1/07 IRS Announces New Phone
Forum on the Draft Redesigned Form 990. The IRS invites
tax professionals and representatives of tax-exempt
organizations to participate in a phone forum on the draft
redesigned Form 990 (Return of Organizations Exempt from
Income Tax). The forum will be presented on July 18, 2007 and
repeated July 19, 2007. Forums are being offered free of
charge and on a first-come, first-served basis. For more
information or to Register online go to
http://www.irs.gov/charities/article/0,,id=171994,00.html.
6/29/07 IRS Wants Charities
Comments on the Draft Redesigned Form 990. IRS must
receive comments no later than September 14, 2007. Charities
are encouraged to email questions regarding the Forms and
Instructions directly to the IRS at
Form990Revision@irs.gov; or mailed to Form 990 Redesign,
ATTN: SE:T:EO, 1111 Constitution Ave., N.W., Washington, DC
20224. Information on the draft redesigned Form 990 is posted
at
http://www.irs.gov/charities/article/0,,id=171216,00.html.
6/19/07 IRS Releases
Redesigned Form 990; Public Comment Is Requested. On June
14, the IRS released for public comment a discussion draft of
the newly redesigned Form 990 Return of Organizations Exempt
from Income Tax, and issued a request for public comment. Some
of the changes include Schedule A with more detailed questions
about how the filing organization qualifies as a public
charity; Schedule C for political campaign and lobbying
activities; Schedule D for supplemental financial statement
schedule previously disclosed on attachments; and a host of
additional schedules including Schedule I for grants and other
assistance; Schedule J for supplemental compensation
information; Schedule M for non-cash contributions; and
Schedule R for related organizations. For highlights of the
redesigned form 990 go to
http://www.irs.gov/pub/irs-tege/highlightsform990redesign_061307.pdf.
6/14/07 IRS Releases Newly
Redesigned Form 990; Requests Public Comment. This
morning, the IRS released for public comment a discussion
draft of the newly redesigned Form 990 Return of Organizations
Exempt from Income Tax. In an effort to enhance transparency,
promote tax compliance, and minimize organizations’ filing
burden, the IRS has revised the form 990 and changed some of
the disclosure requirements. In this first major redesign in
30 years, the new form changes the way public charities
disclose finances, fundraising activities, governance,
executive and board compensation, and program services. The
IRS has requested public comments from the tax-exempt
community. While the form is not expected to be used until
2009 (for the 2008 tax year returns), the IRS must receive
comments no later than September 14, 2007. Charities are
encouraged to email questions regarding the Forms and
Instructions directly to the IRS at
Form990Revision@irs.gov; or mailed to Form 990 Redesign,
ATTN: SE:T:EO, 1111 Constitution Ave., N.W., Washington, DC
20224. More information on the Form 990 redesign is posted at
http://www.irs.gov/charities/article/0,,id=171216,00.html.
5/30/07 Senate Finance
Committee Calls for New Form 990 with More Disclosure: existing
federal tax data outdated and inadequate. In a May 29 letter
to Treasury Secretary, Henry Paulson, Senate Finance Committee
Chair Max Baucus (D-MT) and Ranking Member Charles Grassley
(R-IA) urged the Treasury Department to reform the IRS Form 990
to improve transparency and compliance. According to Grassley
and Baucus, the Form 990 has not kept up with modern practices
in the charitable sector, nor does it capture vital information
regarding major parts of the sector especially hospitals and
universities, fundraising, executive Compensation, endowments
and joint ventures. While the IRS plans to release its revised
Form 990 later this summer, Grassley and Baucus have requested a
response from Secretary Paulson by June 30. A copy of the Letter
is posted at
http://us.gallerywatch.com/docs/news/US/agdocs/24889_finance-irs-52907.htm.
1/25/07 IRS Posts New Reporting
Requirements and Forms Changes for Charities required by the
Pension Protection Act of 2006. Certain provisions of the
Pension Protection Act of 2006 result in new reporting
requirements for exempt organizations required to file their
2005 Forms 990, 990-EZ, 990-PF, 990-T and 4720. This applies
only to organizations that had not already filed their 2005
990s. The 2005 forms and instructions will not be changed to
reflect these reporting requirements. However, the IRS has just
posted a list to help you with the changed rules at
http://www.irs.gov/charities/article/0,,id=166019,00.html. For additional information go to:
http://www.irs.gov/charities/article/0,,id=161145,00.html.
For charities filing 2006 Forms 990 and 990-EZ and Schedule
A, instructions incorporating significant changes to address
legislation enacted in 2006 (the Pension Protection Act) can be
found here
http://www.irs.gov/charities/article/0,,id=167156,00.html.
11/13/06 IRS Releases Form
990-W to report Unrelated Business Income. The Internal Revenue Service recently released the
2006 IRS form 990-W entitled “Estimated Tax on Unrelated
Business Taxable Income for Tax-Exempt Organizations”.
Generally, unrelated business activity is subject to unrelated
business income tax (UBIT) if the activity is a trade or
business regularly carried-on, and is not substantially related
to furthering the exempt purpose of the organization. The
Pension Protection Act of 2006 required additional disclosure of
information relating to this income. The new IRS form 990-W also
applies to investment income for private foundations. A copy of
this new form 990-W is posted at
http://www.irs.gov/pub/irs-pdf/f990w.pdf.
|
