Exempt Organizations Advisory - IRS Promises Guidance on Changes in Form 990 Regarding Compensation

On March 21 and 22, the IRS held a Phone Forum regarding changes to Form 990, Return of Organization Exempt from Tax. Two experts from IRS Exempt Organizations provided an in-depth look at the changes in 2006 Form 990, 990-EZ, 990-PF and Schedule A. Significant changes to these forms (which we reported on here) were dictated by the Pension Protection Act in 2006 (PPA).

As a result of many questions received by the IRS, the Service intends to provide guidance in the form of Q’s and A’s which will address questions regarding new lines 25a and 25b, as well as line 75c, on Form 990 relating to compensation paid to former, as well as to current, officers, directors, trustees and key employees. The IRS hopes that the promised guidance will be released in the next four to six weeks.