Non-Profits – Changes for Tax Form 990

In an effort to improve compliance and to address changes in the non-profit sector, the IRS and Congress have made significant changes to Form 990. Chris McNeely, a Certified Public Accountant with the Fyffe Jones Group says that the IRS estimates that preparation time could increase by as much as 30%, which could mean higher professional fees. Prior years’ Form 990 included Schedules A & B while the new form contains sixteen schedules. Transitional rules have been provided for 2009, organizations with gross receipts less than $500,000 may file Form 990EZ. The 2008 cutoff was $1 million.

Changes on the 2009 Form include alterations in almost all sections. New questions have been implemented in Part IV, Checklist of Required Schedules and Part XI, Financial Statements Reporting. Also for 2009 a new glossary definitions in the Instructions has been included. McNeely suggests that the additional requirements in Part III, Statement of Program Service can provide non-profit organizations a useful marketing tool.

For a complete listing of changes visit the IRS website:
http://www.irs.gov/charities/article/0,,id=218938,00.html.

The filing deadline for calendar year non-profits is May 17, 2010.