October 27, 2005 | Read Time: 1 minute
TAX WATCH
The Internal Revenue Service has released a draft version of a revised Form 990 informational tax return for nonprofit organizations and has asked charities to comment on its ideas.
The draft form requires more information from charities about the compensation they pay. Charities would have to state how much they paid key employees who no longer are on their staffs and trustees who no longer serve the organization.
Charities would also have to disclose whether key officials have family or business relationships with each other, and whether they are paid by any organization related to the entity filing the form.
In addition, charities would be required to state whether they had authority over any financial accounts held outside the United States, and whether they make overseas grants — part of an effort by the Internal Revenue Service to keep a closer eye on organizations as it monitors possible terrorist activities.
The IRS draft forms are available online at http://www.irs.gov/charities/index.html.
Comments about the forms may be e-mailed to the IRS by visiting http://www.irs.gov/formspubs/page/0,,id=10179,00.html.
