Washington (Sept. 6, 2002) -- The Internal Revenue Service wants more detailed information from charities when they file their Form 990 returns, and is requesting comments on additional changes under consideration.The IRS has revised the instructions for Part I, line 1a, to clarify that a filing organization must report the gross amount raised by an outside fundraiser and not just the amount actually received by the filing organization. In addition, instructions for Part II have been revised to emphasize that fundraising expenses should not be reported as program related expenses even when one of the functions of the organization is soliciting contributions for other organizations.

The IRS has added a check box in Part II for an organization to indicate whether it accounts for joint costs in accordance with the AICPA's Statement of Position 98-2 (SOP 98-2), Accounting for Costs of Materials and Activities of Not-for-Profit Organizations and State and Local Government Entities that Include Fund-Raising.

Additionally, the IRS will no longer require an organization to attach the lists of contributors and disqualified persons to substantiate the amounts reported on Schedule A, Part IV-A, lines 26(b), 27(a) and (b), and 28. Instead, the organization must prepare these lists and keep them with its records.

--Electronic Accountant Newswire staff

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