Exempt Organizations Advisory - IRS Releases Guidance on Public Disclosure of Unrelated Business Income Tax Returns (Forms 990-T)

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

On May 9, the IRS published Notice 2007-45, which provides interim guidance on the new Pension Protection Act provision requiring charities to publicly disclose their annual IRS Form 990-T, Exempt Organization Business Income Tax Return.  Any Form 990-T filed by an organization exempt from tax under Section 501(c)(3) of the Internal Revenue Code with the IRS after August 17, 2006 must be made available for public inspection.

The IRS and the Treasury Department expect to revise the regulations under Code Section 6104(d)(1)(A)(ii) to take account of the change made by Section 1225 of the Pension Protection Act; in the meantime, charities may rely on Notice 2007-45.  For more information, see http://www.irs.gov/pub/irs-drop/n-07-45.pdf.