Exempt Organizations Advisory - 2006 Form 990 Question-and-Answer Document Released by IRS

By:      Catherine W. Wilkinson (cwilkinson@steptoe.com)
           Suzanne Ross McDowell (smcdowell@steptoe.com)

On April 26, the IRS issued a new question-and-answer document, 2006 Form 990 Qs and As, which supplements the 2006 Form 990 instructions.  Issues addressed include: Line 1d (government contributions); Line 25 (compensation of current and former officers, directors, trustees and key employees, including other distributions to disqualified persons); Line 75b (family or business relationships); Line 75c (compensation from related organizations); Part V-B (compensation to former officers, directors, trustees and key employees); Lines 106-107 (transfers to or from controlled entities); Schedule A (compensation of highest paid employees); and Schedule B (schedule of contributors).

According to the IRS, the new guidance is separate from plans to redesign the Form 990 for the future.  The first version of the new Form 990 is expected to be released for comment in June.

More information can be found at http://www.irs.gov/charities/article/0,,id=167156,00.html.