New Nonprofit Tax Forms
The Internal Revenue Service recently published new draft instructions for a revamped version of Form 990, used by nonprofit organizations. The new rules will go into effect when nonprofits file their 2008 tax returns.
In the interests of greater transparency and accountability, more information now must be divulged about the inner workings of the nonprofit. There are some detailed questions about such matters as compensation for officials, fund-raising sources, and whether the organization has an ethics policy.
Whereas previously nonprofits with gross receipts of less than $25,000 were exempt from filing requirements, now all nonprofits must file some version of Form 990.
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