AICPA Recommends Changes to IRS Form 990 Used by Public Charities
Published September 20, 2012
The American Institute of CPAs
to the Internal Revenue Service on Aug. 16, 2012 about how to improve the form on which tax exempt organizations report required information annually.
The AICPA made 17 recommendations to the IRS about the changes it believes are important for the Form 990, Return of Organization Exempt from Income Tax, and the related instructions. Each of the recommendations is categorized as a “high,” “medium” or “low” priority.
Among the recommendations receiving a high priority rating are those related to
- The lack of a definition for audited financial statements in the instructions;
- The requirements for reporting income from partnerships; and,
- The granting of funds by one domestic charity to another domestic charity for use abroad.