May 31, 2001 | Read Time: 1 minute
By ELIZABETH SCHWINN
Nonprofit organizations are being asked by the I.R.S. for their suggestions on how to simplify salary-disclosure requirements. The tax agency said it was concerned that many charities have said the rules are too hard to follow.
Charities are required to list the salaries of their top executives — officers, directors, trustees, foundation managers, and other key employees — on their informational tax returns.
One issue under review is the requirement that groups that hire an outside management company reveal the salaries of top officials at that company.
Tax-exempt groups say that it’s difficult for them to obtain information about employees’ salaries at a private company. They also say the rule invades the privacy of the company’s employees.
But the I.R.S. says that without the rule, nonprofit groups could avoid revealing their top executives’ pay by saying that the executives work for outside management groups. The revenue service asked for comment on how common it is for charities to hire management companies, and on how the rule about reporting salaries at those companies could be simplified while still protecting against abuse.
Comments should be sent in writing by July 23 to: Internal Revenue Service, 1111 Constitution Ave., N.W., Washington, D.C. 20224, Attn: David W. Jones, T:EO:RA:T, Room 3T3.
