On December 20, 2007, the IRS released the final version of the redesigned Form 990 for fiscal years beginning in 2008.  While this final version differs in many respects from the draft issued in June 2007, it retains the use of a “core form” of 11 pages with 16 supplemental schedules, many of which might not be applicable to a particular entity.
There are many noteworthy aspects to the new forms, and, in some cases, a significant amount of information will need to be reported for the first time.  Three examples of this are:

• New Schedule H will required hospitals to provide detailed information about charity care programs, bad debt expenses, collection practices, Medicare revenue and costs, and community activities.  Many sections of this schedule will be optional for 2008, but mandatory thereafter.
• The core form, in Part VI, will ask a series of detailed questions about, among other things, the organization’s governing body, committees, minutes-taking practices, procedures for reviewing the Form 990, conflict of interest policy, whistleblower policy, and records retention policy.
• Schedule F will require detailed information about activities and grants outside of the United States.

The revised form and schedules can be found at http://www.irs.gov/charities/article/0,,id=176637,00.html

Although the earliest due date for filings using the revised Form 990 is May 15, 2009, organizations should start to study the new form now to determine what changes they should implement to ensure that, when the time comes, they can efficiently file a complete and accurate return.

This is presented for informational purposes only and should not be construed as financial or legal advice.  For more information, please contact Drew Cheney, Tax Principal at dcheney@bnncpa.com or call 207.791.7173.