May 21, 1998 | Read Time: 1 minute
Congress may consider enacting new rules that would make it far easier for the public to gain access to the tax returns of private foundations, according to congressional aides on Capitol Hill.
Under a proposal that lawmakers could take up in coming weeks, foundations would have to immediately provide their three most recent informational tax returns, called Forms 990-PF, to anyone who requested them in person. Foundations would be given 30 days to send copies to people who made written requests for the forms.
Currently, private foundations must make their Forms 990-PF available only for inspection — not for photocopying — if the request for the forms is made by a U.S. citizen within 180 days of the foundations’ publishing a notice that they have filed the annual returns with the government. For half the year, private foundations may keep their forms secret.
The proposal requires foundations to match the disclosure requirements for charities that Congress approved in 1996. Those requirements will go into effect 60 days after the Internal Revenue Service issues final rules explaining how it will enforce the law.
The private-foundation proposal could be packaged with a measure to extend a key tax break for foundation donors that is about to expire, according to a staff member of the Congressional Joint Committee on Taxation. Until June 30 of this year, donors may deduct the full market value of appreciated stock they give to foundations. But unless Congress acts, starting on July 1 such donors will be allowed to deduct only the amount they originally spent to buy the stock.
