When the Form 990 was revamped three years ago, it was intended to create more transparency and more accountability for organizations across the country. There is no doubt it has created more work for the leaders of those organizations.
In its ongoing attempt to make the form more relevant – and with the added goal of making it easier to complete and understand – the Internal Revenue Service has invited public comments on certain issues related to Form 990.
Specifically, the IRS welcomes feedback about reporting compensation to key employees and leaders of an organization – compensation directly from the organization and compensation through a management company or leasing company that is owned or controlled by the organization. The IRS has received complaints that the new rules allow some highly paid individuals to avoid disclosing their full compensation.
The IRS also welcomes comments on activity codes, reporting revenue from governmental units, reporting on audited financial statements, and more. The complete list of topics can be found here, along with more details about this process.
Comments are due Aug. 1 and can be e-mailed to Form990Revision@irs.gov using “Announcement 2011-36” in the subject line. We encourage you to copy your Barnes Dennig representative on the e-mail; your comments will help shape our official comment on the issue.
As always, we will monitor the situation and keep you abreast of any changes that result from this process.