Eight Common Reporting Issues on Form 990
The redesigned Form 990, Return of Organization Exempt from Income Tax, has been the subject of much discussion since the IRS released it in 2007. As the exempt sector and practitioners have been adjusting to the new filing requirements, areas of confusion have been identified. Earlier this year, an IRS official reported filing errors in approximately 1% of redesigned Forms 990 filed electronically during 2010. Common errors include failure to file Schedule O, Supplemental Information to Form 990, and failure to complete required lobbying details when a Sec. 501(h) election has been made.
These examples suggest a narrow definition of error and do not capture many of the issues practitioners and exempt organizations face when completing Form 990. This item highlights issues frequently encountered by practitioners, including many compensation issues.