IRS Releases Executive Compensation Report and Nonprofit Panel Requests Public Comment on Self-Governing Principles

Today, the IRS released a report describing the results of its Exempt Organizations Executive Compensation Compliance Project. According to the report, a significant portion of the organizations contacted had provided insufficient or inaccurate information on the Form 990s and 990-PFs, in many cases due to confusion over what the forms require, particularly over the reporting of compensation and loans to officers and employees. Ultimately, nearly one-third of the organizations contacted by the IRS amended their information returns.

While the report recommends simplified reporting of compensation-related information on the Form 990, clearer instructions for the form, and better education for exempt organizations, it also forecasts continued enforcement in this area and perhaps assessment of penalties for incomplete Form 990s and 990-PFs.

For the full story, please view the PDF.