November 27, 1997 | Read Time: 1 minute
The I.R.S. is asking for public comment on an idea that it has recently pondered: Should many more small tax-exempt groups be allowed to avoid filing informational tax returns that detail their finances. Non-profit organizations must provide such a return — known as the Form 990 — if their annual gross receipts total more than $25,000.
In a statement (Announcement 97-114, Internal Revenue Bulletin 1997-47), the I.R.S. said it was considering a proposal to raise that threshold, perhaps to $40,000 or $100,000. A key reason: keeping up with inflation. The $25,000 threshold has not been changed since 1982.
About 600,000 tax-exempt groups now report gross annual revenue of at least $25,000. The I.R.S. has said that about 40,000 organizations would be relieved of the filing requirement if the threshold were raised to $40,000.
The revenue service is worried that such a change would result in the government’s winding up with less year-to-year data about non-profit organizations. To compensate, the I.R.S. invited the public to suggest “less burdensome alternative methods of periodic reporting by organizations excepted from filing Form 990 that would provide the service with information necessary to maintain and update computer lists of exempt organizations.”
Comments must be submitted to the government by February 23, 1998. They should be mailed to: CP:E:EO:P:1 (Announcement 97-114), Room 6033, Internal Revenue Service, 1111 Constitution Avenue N.W., Washington 20224.
Comments also may be sent to the I.R.S. electronically by following the instructions on the revenue service’s World-Wide Web site at http://www.irs.ustreas.gov/prod/tax_regs/comments.html.
