New Form 990 Taken to Task

The IRS is assessing hundreds of comments, including those by an AICPA task force, on its draft revised Form 990, Return of Organization Exempt From Income Tax . The task force suggested a new summary should emphasize exempt purpose and activities, rather than compensation and fundraising and total expense ratios. It also expressed concern about the clarity, comparability and fairness of compensation reporting and recommended at least a year of transitional relief after publication of new requirements.

IRS officials have already decided to drop some questions from the summary, Ronald J. Schultz, an IRS senior technical adviser, told the American Bar Association Section of Taxation at its fall meeting in Vancouver, Tax Notes Today reported. Comments submitted to the IRS can be read at www.irs.gov/charities/article/0,,id=173106,00.html.