June 18, 2007 | Read Time: 1 minute
The proposed new version of the Form 990 informational tax return that was released last week relies too heavily on lengthy instructions, writes Jack Siegel of Charity Governance.
“The evidence will bear out my observation that people don’t read instructions,” he said in a letter has he sent to the Internal Revenue Service. “This is true for preparing a tax return, setting up a new computer, or using a cellphone”. Mr. Siegel, a Chicago lawyer, said he had hoped for a “self-contained form.”
Mr. Siegel says he is also disappointed that the new form would not allow attachments like PDF files.
“The laudable goals of full disclosure and transparency are best served by permitting organizations to freely attach documents containing supplemental information and disclosures,” he says.
Mr. Siegel would also like the IRS to collect information on cash flow, financial fraud, and the presence of elected officials on boards, along with more detailed information about compensation.
He has also shared his assessment of the proposed 990 form with the IRS.
What do you think about the new tax form? Will it help improve charity accountability or will it simply add new reporting duties for nonprofit groups?
