Treasury and IRS Announce Planned Form 990 Reporting Changes
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have announced that they are considering revisions to Form 990, the annual information return required for most tax-exempt organizations. The proposed updates are aimed at increasing transparency, improving oversight and enhancing the IRS’s ability to administer and enforce tax laws.
Among the areas under consideration are expanded reporting requirements related to government grants, government contracts and fiscal sponsorship arrangements. According to the IRS, additional disclosures could provide the public with greater insight into how organizations receive and use government funding, while also helping regulators identify potential instances of fraud, waste or misuse of public resources.
Fiscal sponsorship arrangements are expected to be a particular focus of the proposed changes, with an emphasis on clarifying who has authority over sponsored projects and how funds are managed and distributed.
At this time, no changes have been formally proposed or adopted. Treasury and the IRS are expected to release proposed regulations for public review and comment before any new reporting requirements take effect. We will continue to monitor these developments and share updates as additional information becomes available.
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About the Author
Samantha Ramirez
Samantha Ramirez, CPA, MST, is a Tax Senior Manager in ASL’s Real Estate Group and Nonprofit Group. Sam has over 15 years of public accounting…
