Exempt Organization Annual Reporting Requirements: Compensation Reported in Prior Year


Some amounts reported on Form 990 as current year compensation may have also been reported in a prior year’s Form 990 or 990-EZ. This could overstate the cumulative compensation reported as paid to the individual. May the organization back out this duplicate amount on the current year's form?

Part VII core form reporting does not permit amounts to be backed out if they were reported in a prior filing of Form 990; such double reporting may be explained in Schedule O PDF.  However, for persons listed in Schedule J PDF, Part II, column (F) of that schedule allows for a backing out of duplicate amounts that were included in the current year’s reportable compensation amount as well as in a prior year’s Form 990 filing.  This may occur for compensation deferred in a prior year but paid in the current year.  This allows the organization to depict more accurately the cumulative compensation paid to individuals listed on Schedule J.