The IRS has issued an updated version of Form 990, the return that charities and other tax-exempt organizations are required to file annually. The final form, released Dec. 20, retains the redesigned draft’s format of a core form and a series of schedules. In response to public comments, the new core form allows an organization to describe its exempt accomplishments and mission up front and provides more opportunities throughout the form for the organization to explain its activities. Other major changes were made to the form’s summary page, governance section, and various schedules, including those relating to executive compensation, related organizations, foreign activities, hospitals, noncash contributions, and tax-exempt bonds. A checklist of schedules was also added.
The new form, Return of Organization Exempt from Income Tax, will be used for the 2008 tax year (returns filed in 2009). The IRS plans to release the related instructions in early 2008.
HFMA worked with the IRS in redesigning the form to enhance transparency, promote tax compliance, and minimize the burden on the filing organization. In Schedule H of the new form, there is a reference to HFMA's Statement 15. Read the HFMA comment letter. Access more information on the new form.
