The Internal Revenue Service is preparing to redesign its Form 990, “Return of Organization Exempt From Income Tax,” according to published reports.

The forms must be filed by nonprofit organizations as a way to allow donors to see how a charity handles donations, as well as a way for the government to ensure that the organization deserves its tax-exempt status. An estimated 400,000 nonprofits filed the form last year.

According to the Wall Street Journal, the IRS is planning to solicit public comment on the current state of the 15-page, 100-question form for a three-month period beginning in June.

The report said that IRS officials are planning to create a form that is more logically organized, containing a main section with questions about an organization’s revenues, liabilities and programs. Beyond that, additional schedules will provide information on certain charitable activities such as lobbying. Still in its early stages, the information requested as part of the revamped form will still fall short of the kind of details required from public companies.

The redesign won’t affect private foundations that don't raise money from the public, which file a different document, Form 990-PF.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access