The Treasury Department announced that the IRS plans to revise the Form 990 to improve transparency related to tax-exempt organizations.
Details: Treasury said:
-
The initiative will provide clearer reporting on certain activities described in section 501(c)(3) of the Internal Revenue Code, including government contracts, government grants, and fiscal sponsorship arrangements.
-
Clearer reporting in government grants and contracts can help the IRS and the public better understand the sources and uses of that funding; support proper revenue classification; and reduce the risk of fraud, abuse, and misuse of taxpayer dollars.
-
It expects to publish proposed regulations and provide an opportunity for public comment before any reporting changes are finalized.
Credit Union Exemption: ICBA has repeatedly called on Congress to require federal credit unions to file 990s to provide transparency into their expenditures.