IRS Discusses Plan to Revise Nonprofit Tax Form

The Internal Revenue Service will soon rework the most common tax form filed by nonprofit groups, known as the Form 990, to eliminate redundant questions and present information more logically, reports The Wall Street Journal.

Most notably, the IRS will require charities to fill out a “core” section that gathers information about its revenues, liabilities, and charitable programs in one place. The new 990 is also likely to require charities to disclose lobbying activities. The changes do not affect the 990-PF, a separate form for private foundations.

Some people quoted in the article expressed disappointment that the 990 will not ask charities to compare themselves to their peers, as most private corporations must, even with commonly accepted measurements of charities’ performance.

The director for the IRS’s tax-exempt unit justified the decision to not ask for that information by saying, “I’m pretty sure the public doesn’t want the government deciding who’s effective and who isn’t.”

Read The Chronicle of Philanthropy’s coverage of new 990 tax forms.

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