BIG CHANGES AHEAD FOR THE FORM 990

The Internal Revenue Service issued the final version of the Form 990 for 2008 in December 2007. The new form is remarkably different from the form currently in use. The current Form 990 consists of a core form of nine pages and two schedules. The schedules are only completed if the organization meets certain criteria.

The new form, on the other hand, has a core form of eleven pages and a total of sixteen schedules. The schedules will be completed only if your organization engages in the activity the particular schedule addresses.

The instructions for the 2008 form are currently issued in draft form. The IRS has requested comments from the public, with June 1 set as the final date for submission. The final version of the instructions is due to be released later in the summer.

There are many new questions in the revised form. However, not only is more information requested, but the way the information will need to be compiled may be different than under the current requirements.

Obviously, it is time to start gathering information for the new form. To help in this effort, Rubino & McGeehin will be adding a new section to the newsletter.

990 Tips will make its debut in the next issue of the newsletter. We will discuss one of the new questions or requirements in each issue of the newsletter. In each case, a brief summary of the issue will be given so that you can determine whether it applies to your organization.

So what will the first tip cover? Look for the phase-in rules for smaller nonprofit organizations.

Ms. O'Malley may be reached directly at pomalley@rubino.com. For more information about Rubino & McGeehin, please visit http://www.rubino.com/ or call 301.564.3636.