Guide to the Newest IRS Form 990: Interpreting and Complying With the New Tax Reporting Requirements for Transparency and Accountability

The Newest Form 990 Tax Return Could Change Your Organization. Are You Ready? Chances are, you do not personally prepare your organization's annual tax return. But you most certainly do manage, influence, or assume accountability for the policies and practices the IRS wants to know about. And whether you do or do not prepare the return, you need this guide. Here s why. The latest Form 990, revised and effective for tax years 2008 and beyond, incorporates the most substantive changes to the exempt organization information return in 30 years. The IRS is requiring more reporting related to governance, compensation, and other areas than ever before. Hence, your organization's Form 990 will present a very public face, shaped in no small part by decisions and operating protocols for which you and other leaders in your organization are responsible. In short, the revised return reflects the government's increased focus on organizational transparency and accountability. And the IRS has made it clear that public closure of Form 990 is one of the agency's primary enforcement tools. Those are some pretty good reasons to give your attention to the 990 and more importantly, to the policies, procedures, and practices that inform the required disclosures. Consider the following:The IRS wants to know how many of your voting board members are not independent, a term it defines through a three-part test, because in the agency's view, an independent governing body is a component of a well-run tax-exempt organization.For reporting purposes, the definition of key employee has been significantly expanded, meaning your organization may need to disclose the compensation of far more employees than it has before. Clearly, the newest 990 has implications for the public face and operation of your organization. Understanding what the newest 990 means will help you and your board make informed decisions. That's where this guide comes in. Guide to the Newest 990, developed by CPAs from the respected accounting firm Tate and Tryon, takes aim at the changes most relevant to associations and similar organizations, and it goes beyond instruction, to the meaning. You get practical interpretation and insight that you won t find in the IRS preparation instructions. This guide digs into understanding, interpreting, and working with the 990.