The NEW Form 990
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Skody Scot & Company, CPAs
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| - Help Preparing Form 990 - CLICK on topic to OPEN DOCUMENT |
OVERVIEW OF NEW FORM
All exempt organizations, except certain religious, governmental,
political and Private Foundations are now required to file an annual
information return (Form 990 or Form 990-EZ) or an annual electronic
notice if they meet certain gross receipts and total assets tests.
Private Foundations are required to file form 990-PF. The IRS
instructions state that all organizations must file even if they did not
file Form 1023 or 1024 (application for tax exemption) and did not
receive an IRS determination letter recognizing their tax exempt status.
The new Form 990 is significantly different from the previous form with hundreds of additions and
changes. Many questions have been rearranged for clarity while many others have been added to
increase operational and financial transparency. Many supporting schedules have been added to provide
increased disclosure on a variety of activities and transactions.
Generally speaking, the biggest change to the new form is its “drill-down” approach to reporting
information. As one goes through the pages of the form they will notice that summary information is first
required, with more detailed information or elaboration given on subsequent pages and schedules.
Significant changes on the new form include: requiring more exempt organizations to complete applicable
sections, schedules and questions; the addition of a Checklist indicating which schedules need to be
completed; a new Governance section consisting of three parts - composition of an organization’s
governing body, its governance and Management policies and disclosure practices; increased reporting
of Compensation of Officers, Directors, Trustees, Key Employees & Independent Contractors;
requirement to use information on forms W-2 and 1099 for compensation reporting; many new schedules
from C to R (no schedule P and Q) requiring significantly more information for certain types of exempt
organizations; and expanded instructions totaling 75 pages (form 990) and 39 pages (form 990-EZ) that
includes a glossary defining important terms and an appendix of special instructions that provides
additional reporting guidance.
All exempt organizations, except certain religious, governmental,
political and Private Foundations are now required to file an annual
information return (Form 990 or Form 990-EZ) or an annual electronic
notice if they meet certain gross receipts and total assets tests.
Private Foundations are required to file form 990-PF. The IRS
instructions state that all organizations must file even if they did not
file Form 1023 or 1024 (application for tax exemption) and did not
receive an IRS determination letter recognizing their tax exempt status.
The new Form 990 is significantly different from the previous form with hundreds of additions and
changes. Many questions have been rearranged for clarity while many others have been added to
increase operational and financial transparency. Many supporting schedules have been added to provide
increased disclosure on a variety of activities and transactions.
Generally speaking, the biggest change to the new form is its “drill-down” approach to reporting
information. As one goes through the pages of the form they will notice that summary information is first
required, with more detailed information or elaboration given on subsequent pages and schedules.
Significant changes on the new form include: requiring more exempt organizations to complete applicable
sections, schedules and questions; the addition of a Checklist indicating which schedules need to be
completed; a new Governance section consisting of three parts - composition of an organization’s
governing body, its governance and Management policies and disclosure practices; increased reporting
of Compensation of Officers, Directors, Trustees, Key Employees & Independent Contractors;
requirement to use information on forms W-2 and 1099 for compensation reporting; many new schedules
from C to R (no schedule P and Q) requiring significantly more information for certain types of exempt
organizations; and expanded instructions totaling 75 pages (form 990) and 39 pages (form 990-EZ) that
includes a glossary defining important terms and an appendix of special instructions that provides
additional reporting guidance.
OTHER SIGNIFICANT CHANGES
Other areas of significant change include: determination of public
charity status and public support (Schedule A has been revised to
emphasize reporting of public charity status and public support and
has replaced the five year “advanced ruling period” requirement);
supplemental financial statement reporting; more information on
fundraising, special events and gaming; and requiring more
information on organizations maintaining collections of works of art
(Schedule D), foreign activities (Schedule F), hospitals (Schedule H),
tax exempt bonds (Schedule K), non-cash contributions (Schedule M),
and related organizations (Schedule R).
Other areas of significant change include: determination of public
charity status and public support (Schedule A has been revised to
emphasize reporting of public charity status and public support and
has replaced the five year “advanced ruling period” requirement);
supplemental financial statement reporting; more information on
fundraising, special events and gaming; and requiring more
information on organizations maintaining collections of works of art
(Schedule D), foreign activities (Schedule F), hospitals (Schedule H),
tax exempt bonds (Schedule K), non-cash contributions (Schedule M),
and related organizations (Schedule R).
