March 10, 2013 | Read Time: 1 minute
The Internal Revenue Service has made dozens of changes to clarify the informational tax forms that tax-exempt organizations must file with the federal agency.
Among them: Nonprofits must report the number of hours an employee worked at organizations affiliated with a nonprofit, not just at the organization filing the form.
In addition, the IRS has dropped the requirement that addresses of key employees, officers, and directors be noted on the form and has reminded nonprofits not to include Social Security numbers because the forms are often disclosed to the public. The move comes after a study last year found that nearly one in five nonprofits had published Social Security information on the forms.
In another change, the tax agency noted that when nonprofits tally the figures for the amount they spend on professional fundraising services, they should include preparation of applications for grants and other assistance.
The tax agency said the changes were all needed to clarify areas that had been confusing for nonprofits since the form was overhauled in 2008.
