IRS Releases Advance Draft of 2010 Form 990

The Internal Revenue Service has now released a draft of the core Form 990 for 2010 while cautioning that the form is subject to change and Office of Management and Budget approval.

It does not appear substantively different from the 2009 form, with a few exceptions. Several additional questions have been added to the form including a question for tax-exempt hospitals asking if audited financial statements are attached; new questions related to qualified nonprofit health insurance issuers asking if the organization is licensed to issue qualified health plans in more than one state; questions about payments for indoor tanning services (a new federal excise tax on indoor tanning was included in the health care reform bill); and a new Part XI asking for a “reconciliation of net assets.” Click here to download the draft Form 990.

The Form 990 was substantively rewritten for the 2008 tax year to include major changes on the summary page of the form, a new section on governance and organizational policies, and more detailed questions on compensation of chief executives and key employees. The core form is accompanied by additional schedules for executive compensation, related organizations, foreign activities, hospitals, and more.

Most tax-exempt organizations are required to file an annual return with the IRS, but the IRS built in a three-year transition period for tax-exempt organizations that are required to file the Form 990. For the 2010 tax year, organizations with gross receipts of greater than $200,000 and total assets greater than $500,000 must file the Form 990. Organizations with less than $200,000 in gross receipts and less than $500,000 in total assets may file the Form 990-EZ. Organizations with less than $50,000 in gross receipts can file a e-postcard, also called the Form 990-N.

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