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What’s involved?

The new Form 990 consists of an 11-page core form that contains 11 parts. This core form is to be completed by all required filers (see Article 1 for information on organizations that comprise "required filers"). There are 16 supplemental schedules to provide additional detailed information. Most large organizations will be required to complete several to nearly all of the supplemental schedules.

A checklist of required supplemental schedules also provides a quick view of whether the filing organization is conducting activities that may raise IRS concern. These include activities such as lobbying, political campaign activities, transactions with insiders or members of their family or closely associated businesses, and major dispositions of assets.

The activities conducted by a filing organization must be consistent with the tax-exempt purpose or mission. The return also includes an entire section for the organization to provide information about its tax-exempt mission, a detailed description of the three largest activities (by revenue and expenditures) the organization undertakes to achieve the mission, new activities adopted during the year, and any activities that ceased during the year.  

The new form contains many "yes/no" questions designed to determine the level of tax compliance. Examples include the unrelated business income and excise tax provisions, rules associated with reportable payments, certain state laws, tax-exempt bond provisions, private inurement prohibitions, excess benefit transaction rules, avoidance of substantial private benefit, applicable lobbying provisions, and specific rules relating to political activity. 

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