|
IRS Releases Redesigned Form 990
By Rosalie W. Miller, CPA
On December 20, 2007, the IRS officially released the redesigned Form 990 (Return of Organization Exempt From Income Tax). The new form was unveiled approximately six months after a draft version was released, and incorporates several changes suggested during the 90-day comment period.
The new form consists of an 11-section core form, supplemented with 16 schedules lettered A through O, designed to replace attachments currently used. All filers must complete the core form, but not necessarily every schedule. In addition, the form features a checklist that will allow preparers to determine which schedules are applicable to their organization.
Returns filed for tax year 2007 will still use the current form, with the new form coming into use beginning with returns filed for tax year 2008. However, due to concerns expressed regarding the transition for small organizations, the IRS is allowing a phase in period over three years by raising the threshold of eligibility for filing a 990-EZ. This will allow more organizations to file the 990-EZ, which remains unchanged (although certain schedules from the new Form 990 will replace attachments that are currently used). The filing thresholds are as follows:
|
May file 990-EZ for: |
If gross receipts are: |
If assets are: |
|
2008 tax year (filed in 2009) |
> $25,000 and < $1,000,000 |
< $2.5 million |
|
2009 tax year (filed in 2010) |
> $25,000 and < $500,000 |
< $1.25 million |
|
2010 and later tax years |
> $50,000 and < $200,000 |
< $500,000 |
The IRS plans to release draft instructions for the 2008 form 990 in early 2008. In the meantime, if you would like to view the revised form and new schedules, you can do so at the IRS website (Click Here).
If you would like to discuss this subject further, please contact either Rosalie Miller (rmiller@pmn.com) or any member of our not-for-profit group at 617-426-9440.
Note: This article represents a general overview of or opinion on certain tax issues or developments and should not be relied upon without an independent, professional analysis of how any of these provisions may apply to a specific situation. We recommend you consult your professional tax advisor before taking any action based on anything in this article.
IRS CIRCULAR 230 NOTICE: In compliance with U.S. Treasury Circular 230 Regulations and any applicable state laws, we hereby notify you that any tax advice contained in the body of this document, or attachments thereto, was not intended or written to be used, and cannot be used, by the recipient or any other party for the purpose of (1) avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein.
|
Full Newsletter
