IRS Seeks Comments on Form 990 (Annual Return for Tax-Exempt Organizations)

June 17, 2011

In Announcement 2011-36, the IRS invites the public to submit comments on certain issues regarding the redesigned Form 990 for tax-exempt organizations. The IRS substantially revised the Form 990 in 2008 and continues to make refinements based on questions and comments from the public.

The IRS seeks comments on the following issues:

  • Adoption (or rejection) of a coding system for exempt activities.
  • How to report payments to management companies and other third parties that are owned or controlled by an organization manager.
  • Thresholds for reporting compensation to organization managers.
  • How to report contributions and program service revenue received from governmental units.
  • How to reduce redundancy of reporting net asset reconciliation.
  • Whether to require additional reporting on audited financial statements.
  • Whether to require reporting of names and EINs of foreign grantees.
  • Whether to require reporting of indirect foreign expenditures.
  • Whether to require reporting on deposits into and withdrawals from a bank account as business transactions on Schedule L.
  • Whether separately organized trusts or nonprofit corporations that are part of a community trust should be required to file separate Form 990 returns, or alternatively, how to increase transparency in reporting by community trusts and their component parts.
  • The advantages and disadvantages of allowing exceptions to reporting of controlling or controlled organizations on Schedule R.

Comments must be submitted to the IRS in writing by Aug. 1, 2011, under a cover page that states “Announcement 2011-36” to the following address: Internal Revenue Service, Attn: Stephen Clarke (Announcement 2011-36), SE:T:EO (3C1), 1111 Constitution Avenue, N.W., Washington, D.C. 20224.

Comments may also be submitted to the email address [email protected] with “Announcement 2011-36” in the subject line. All comments submitted will be made available for public inspection and copying.

McGuireWoods LLP Nonprofit & Tax-Exempt Organizations Group

Our nonprofit and tax-exempt organizations lawyers provide advice and guidance that enable charities and other nonprofits to operate more efficiently and effectively in today’s increasingly complicated, regulated and competitive environment.