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Advocacy Blog
Wednesday, October 17, 2007
IRS Work on Revised Form 990 Continues
As a result of more than 650 comments on the proposed changes to the Form 990, reportedly the Internal Revenue Service (IRS) has rewritten parts of the draft and continues to do so. The Chronicle of Philanthropy ($$) reports that the IRS is eliminating several questions, including one that would have required charities to tally the total compensation of their officers, directors, and other key employees, and calculate that total as a percentage of their total expenses. Also being removed is the requirement that nonprofits calculate their fund-raising expenses as a percentage of total contributions and questions comparing operating expenses to an organization's net assets.
OMB Watch submitted comments, saying the "IRS should take the time necessary to produce a useful and truly improved Form 990. We suggest that the IRS provide a new draft of the Form 990 based on comments the agency receives from this proposal. The second draft should allow for public comment before moving to finalize the form."
The Chronicle will host an online discussion of the 990 changes on Wednesday, October 24 to go over what the changes proposed could mean for nonprofit groups, how groups can influence the final version of the form, and how to prepare to meet the new reporting challenges. The discussion is open to everyone, not just subscribers. To find out more information and to submit your questions in advance, click here.
Posted by Amanda Adams
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