IRS Updates Form 990 — Revises Reporting Requirements

« posted: July 24, 2008, 10:46:49 PM »


Changes being implemented by the IRS with respect to income reporting will impact record-keeping, beginning in 2008. A new Form 990 with new supporting documentation was introduced late last year; the first major change since 1979.

The new form has eleven sections that must be completed by all organizations required to file the 990, plus fifteen additional schedules applicable to particular types of organizations. In an effort to reduce confidentiality, the new form captures more information about governance policies, executive compensation, benefits delivered which justify the continuation of nonprofit status, and a financial summary that can serve as a snapshot of an organization's financial condition.

A three-year transition period has been provided for smaller organizations to get up to speed with the new reporting requirements. For 2008, NPO's with receipts of less than $1-million or total assets of less than $2.5-million will be able to file the simpler 990-EZ version. In 2009, that threshold drops to $500,000/$1.25-million. In 2010, organizations with receipts exceeding $200,000 or assets over $500,000 will be required to file the regular 990.

Meanwhile, for 2008 the IRS is also requiring small NPO's — those with receipts of under $25,000 — to file a simple "e-postcard" return; the Form 990-N. This is a first; up to now, organizations with receipts of less than $25,000 were not required to file. In 2010, the 990-N/990-EZ threshold will be moved up to $50,000.

Visit for details, and to view example of the new forms.