IRS Releases Final Version of Form 990, Schedules

The Internal Revenue Service has made public the final Form 990 and its related instructions and schedules, more than 18 months after the first draft of the revised federal financial-disclosure form was released to the public.

The new form is the first overhaul of the Form 990 in nearly 30 years and will require tax-exempt groups to reveal much more information about how organizations are governed, pay their key employees and directors, and earn income that is not directly related to their charitable missions.

The main part of the redesigned form consists of an 11-page document — what the IRS calls the “core form” — that all organizations must complete.

The core form is accompanied by 16 supporting schedules that probe details of lobbying, business transactions with insiders, and international activities. Although the changes to the form are broad, the federal tax agency estimates that only 30 percent of nonprofit organizations will have to file the lengthy new forms — for the 2008 tax year, only groups with $1-million or more in gross receipts or more than $2.5-million in assets must complete the new Form 990. Those thresholds are cut in half for the 2009 tax year and fall to $200,000 in gross receipts and $500,000 in assets for 2010.

While the IRS intends to use the new disclosures to more closely monitor tax-exempt organizations for abuses, it says the forms ultimately provide a better way for groups to publicize the good that they accomplish.

The new Form 990 and the related instructions and schedules can be found on the tax agency’s Web site.

CHARITABLE DEDUCTIONS CLAIMED ON TAX RETURNS Total Amount (in Billions) 2001 $139.2 2002 $140.6 2003 $145.7 2004 $165.6 2005 $183.4 2006 $186.6 Percentage of Returns 2001 30.2% 2002 31.1% 2003 29.6% 2004 30.7% 2005 30.8% 2006 29.9% Average Contribution per Return For taxpayers claiming charitable deductions 2001 $3,535 2002 $3,480 2003 $3,772 2004 $4,076 2005 $4,432 2006 $4,504 SOURCE: Internal Revenue Service