Redesigned Form 990 for Tax-exempt Organizations

Statement

Today the Internal Revenue Service released for comment and discussion a significantly revised draft Form 990, the annual return required to be filed by tax-exempt organizations to report information about their operations. The IRS hopes to have the form ready for use for the 2008 filing year (returns filed in 2009). Sen. Max Baucus, chairman of the Committee on Finance, and Sen. Chuck Grassley, ranking member and former chairman, last month urged the IRS to update this form. They made the following comments on today's announcement.

Grassley comment:

"This is good news. The 990 filing is often the public's only look at a non-profit's finances. If you're making a donation, you may want to research what proportion of your money is going to executive salaries rather than helping people in need. With the current form, transparency is lacking.
A potential donor might get frustrated and give up. That doesn't help charities. And the lack of transparency doesn't serve taxpayers. They deserve accountability for the generous tax breaks the federal government offers to tax-exempt groups. The IRS' revisions are on the right track. I'm
disappointed that the disclosure threshold for salaries is too high. Salaries are a huge expense, and the public needs adequate information. Now I hope the agency keeps moving to analyze public comments and get the final form in place as soon as possible. President Carter was in office the last
time the IRS rewrote this form. Let's open the blinds and let the sunshine in."

Baucus comment:

"This new form will help the public and the IRS assess whether tax exempt organizations are staying true to the reasons they were granted exempt status in the first place. We must be assured that the public's donations are used appropriately. I will continue to value greater transparency and
openness as I work with my colleagues to oversee the tax-exempt sector and to maintain public confidence in their work."

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