The Internal Revenue Service is preparing to redesign its Form 990, âReturn of Organization Exempt From Income Tax,â according to reports.
The forms filed by nonprofit organizations to allow donors to monitor how a charity handles donations, as well as a tool for the government to verify an organization's tax-exempt status. An estimated 400,000 nonprofits filed the form last year.
According to the Wall Street Journal, the IRS is planning to solicit public comment on the current state of the 15-page, 100-question form for a three-month period beginning in June.
The report said that IRS officials are planning to create a form that is more logically organized, containing a main section with questions about an organization's revenues, liabilities and programs. Beyond that, additional schedules will provide information on certain charitable activities such as lobbying. Still in its early stages, the information requested as part of the revamped form will still fall short of the kind of details required from public companies.
The redesign won't affect private foundations that don't raise money from the public, which file a different document, Form 990-PF.