IRS updates Form 990 for nonprofits

The Treasury Department recently announced that the IRS will revise Form 990, which is used by tax-exempt organizations, to enhance transparency and combat fraud.

“Government grants and contracts can involve substantial public funds,” the department said. “Clearer reporting in these areas can help the IRS and the public better understand the sources and uses of that funding, support proper revenue classification and reduce the risk of fraud, abuse and misuse of taxpayer dollars.”

Treasury and the IRS expect to publish proposed regulations and provide an opportunity for public comment before finalizing any changes. See the news release.