AICPA Provides Recommendations to Clarify the Form 990 Series

AICPA Provides Recommendations to Clarify the Form 990 Series and Related Instructions

Washington, D.C. (April 15, 2024) The American Institute of CPAs (AICPA) submitted a letter to the Internal Revenue Service (IRS) requesting clarification and workarounds for the 990 Series Form instructions. A broad category of exempt organizations must file returns with the IRS each year, including hospitals, private foundations, universities, churches and many others. Exempt organizations will generally file a form that is part of the Form 990 series.Among its recommendations for Forms 990, 990-PF and 990-T, the AICPA has requested the clarification of instructions; the simplification, addition and re-wording of language; and the updating of forms and instructions.

The AICPA's recommendations include:

• The IRS should provide clarification and workarounds for the 990 Series Form instructions, as well as Publication 4163, Modernized e-File (MeF) Information for Authorized IRS e-File Providers for Business Returns, to help practitioners successfully electronically file exempt organization returns.

• In the case of a system-wide E-file outage, the IRS should alert the public via the website page "E-file for Charities and Non-Profits"or make an announcement via an alert through the IRS' e-News for Exempt Organizations.

• The business filing superseding return function in the MeF system should be extended to exempt organizations to allow them to file superseding returns after the original-filed return has been filed, but prior to the end of the filing period (with extensions) without amending the applicable series Form 990.

The AICPA's comments also include a matrix for the Form 990 series which focuses on specific sections and the recommendations for those sections.

"Greater clarity in the Form 990 series, and the related instructions, will greatly benefit the exempt organizations that have to file those returns, as well as the tax professionals who assist them," says Peter Mills, Senior Manager, AICPA Tax Policy & Advocacy. "Allowing exempt organizations to file superseding returns, instead of requiring amended returns, will greatly streamline the filing process, saving time and costs."

About the American Institute of CPAs

The American Institute of CPAs® (AICPA®) is the world's largest member association representing the CPA profession, with more than 415,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives continuing education to advance the vitality, relevance and quality of the profession.

Contact: Veronica L. Vera
202-434-9215
[email protected]

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BACKGROUND:

June 2, 2022 - Comments on Form 990, Return of Organization Exempt from Income Tax, Form 990- T, Exempt Organization Business Income Tax Return, and Form 990-PF, Return of Private Foundation, and Related Instructions

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