Table of Contents
For the latest information about developments related to Form 990 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form990.
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The General Instructions:
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Remind filers not to include social security numbers on Form 990, because the filing organization and the IRS are required to publicly disclose the organization's annual information returns upon request.
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Clarify which year's Form 990 may be used to file for a short period.
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Clarify that a short period return cannot be filed electronically unless it is a final return for which the “Terminated” box is checked in Item B of the Form 990 Heading.
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Clarify that only hospital organizations should attach a copy of their most recent audited financial statements to Form 990.
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In Part IV, Checklist of Required Schedules:
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Lines 12a and 12b now ask filers that obtained audited financial statements to complete Schedule D, Parts XI and XII (rather than Parts XI, XII, and XIII), because the former Schedule D, Part XI (Reconciliation of Change in Net Assets) has been eliminated.
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Instructions for lines 15 and 16 clarify when the organization should complete Schedule F, Parts II and III based on grants or other assistance for foreign organizations or individuals.
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Instructions for lines 33 and 34 clarify that both related C corporations and related S corporations are to be reported in Schedule R, Part IV.
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In Part VI, Governance, Management, and Disclosure:
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Line 3 instructions clarify what information on management companies should be provided in Schedule O if the filer answers “Yes” to line 3.
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Line 18 regarding disclosure of Forms 1023, 1024, 990, and 990-T now includes a new checkbox, “ □ Other (explain in Schedule O).”
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In Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors:
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Section A, column (B) asks for reporting of average hours per week worked for related organizations, in addition to hours worked for the filing organization.
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Section A instructions provide an example of how to report benefits provided through a self-insured medical reimbursement plan.
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Section B instructions clarify that insurance providers should not be reported as independent contractors.
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In Part VIII, Statement of Revenue:
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The heading includes a new checkbox that an organization must check if its Schedule O contains a response to a question in Part VIII.
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The instructions no longer require filers to report their share of revenue of joint ventures and other partnerships using Schedule K-1 (Form 1065); rather, they can report according to their books and records.
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The instructions clarify that a section 501(c)(3) organization that is an S corporation shareholder must treat all allocations of income from the S corporation as unrelated business income.
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The instructions clarify how to report payment card and third party network transactions reported on Form 1099-K.
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In Part IX, Statement of Functional Expenses:
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Line 3 instructions clarify when the organization should report on this line grants or other assistance for foreign organizations or individuals.
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Line 11g requires that if the amount on that line exceeds 10% of total functional expenses, the filer must list the type and amount of each line 11g expense on Schedule O.
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In Part X, Balance Sheet:
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The heading includes a new checkbox that an organization must check if its Schedule O contains a response to a question in Part X.
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The instructions no longer require filers to report their share of assets of joint ventures and other partnerships using Schedule K-1 (Form 1065); rather, they can report according to their books and records.
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Line 6 clarifies that any receivable reported in this line triggers filing of Schedule L, Part II (Loans to Interested Persons).
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Part XI, Reconciliation of Net Assets, includes new lines (formerly included in Schedule D, Part XI) for net unrealized gains (losses) on investments, donated services and use of facilities, investment expenses, and prior period adjustments.
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Part XII, Financial Statements and Reporting, eliminates the former line 2d (whether financial statements were issued on a separate or consolidated basis) and expands lines 2a and 2b to ask whether financial statements were compiled, reviewed, or audited on a separate or consolidated basis.
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In the Glossary:
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The definition of “Disqualified person” is revised to clarify that if the 5-year disqualification period ended within the organization's tax year, it may treat the person as disqualified for the entire year.
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The definition of “Grants and other assistance” deletes “program-related investments.”
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The definition of “Professional fundraising services” includes preparation of applications for grants or other assistance.
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Appendix F, Disregarded Entities and Joint Ventures, clarifies that filers can report their interests in joint ventures and other partnerships in Parts VIII, IX, and X in accordance with their books and records.
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Appendix J, Contributions, clarifies that if an organization accepts a contribution in the name of one of its programs, its donor acknowledgment should indicate the organization's name.
Forms 990 and 990-EZ are used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033.
An organization's completed Form 990 or 990-EZ, and a section 501(c)(3) organization's Form 990-T, Exempt Organization Business Income Tax Return, generally are available for public inspection as required by section 6104. Schedule B (Form 990, 990-EZ, or 990-PF), Schedule of Contributors, is available for public inspection for section 527 organizations filing Form 990 or 990-EZ. For other organizations that file Form 990 or Form 990-EZ, parts of Schedule B (Form 990, 990-EZ, or 990-PF), can be open to public inspection. See Appendix D and the instructions for Schedule B (Form 990, 990-EZ, or 990-PF) for more details.
Some members of the public rely on Form 990 or Form 990-EZ as their primary or sole source of information about a particular organization. How the public perceives an organization in such cases can be determined by information presented on its return.
If you have questions and/or need help completing Form 990, please call 1-877-829-5500. This toll-free telephone service is available Monday through Friday.
The IRS has established a subscription-based email service for tax professionals and representatives of tax-exempt organizations. Subscribers will receive periodic updates from the IRS regarding exempt organization tax law and regulations, available services, and other information. To subscribe, visit www.irs.gov/eo.
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