IRS Releases Dramatically Redesigned Form 990 for Public Comment

On June 14, the IRS released a substantially revised draft Form 990, Return for Exempt Organizations, which will likely be the basis for the Form 990 used by organizations beginning with the 2008 tax year (that is, for returns filed in 2009). The form’s revisions reflect the IRS’s continued focus on issues of transparency, governance, and the public accountability of tax-exempt organizations.

Unlike its predecessor, the revised form includes a summary page that provides a snapshot of key operational information about the organization, including key financial, compensation, governance, operational, and identifying information. The remainder of the 10-page core form, which must be completed by all filers, concentrates on the general financial, operational, and governance issues generally applicable to most tax-exempt organizations. The revised form relies more heavily on activity-specific schedules—there are 15 of them—that are required to be completed only to the extent that an organization engages in the subject activity. These include schedules that focus on public charity status, political and lobbying activity, fundraising and gaming, foreign activities, compensation, tax-exempt bonds, noncash contributions, and related organizations.

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