2011 Form 990 Released by IRS

The 2011 version of the Form 990 has recently been released by the Internal Revenue Service. Not surprisingly, there are very few material revisions to either the core form of the Form 990 or any of the 16 different Schedules. One important revision to note is in regards to the preparation of Schedule F. It is now a requirement that an exempt organization must complete Schedule F, Part I if the exempt organization owned foreign investments of more than $100,000 at any point during the applicable year.

Other revisions/changes to the 2011 version of the Form 990 include the following:

  • The Instructions for Part VI of the core form set forth that a Director does not compromise their independence, in and of itself, because the Director (or someone related to the Director)  was a key employee of an entity that engaged in a business transaction with the filing exempt organization (reportable on Schedule L)
  • Part VI, Line 7b of the Form 990 was expanded to inquire whether any governance decisions of the organization are subject to approval by persons other than the governing body of the filing exempt organization
  • The Part VII Instructions clarify some facets of the compensation table reporting regarding reportable compensation and other compensation
  • Requirement to report distributive shares in partnerships according to ending capital account balances
  • Contributions of conservation easements must be reported consistently with how the organization reports revenue from such contributions on their financial books
  • The definition of “grants and other assistance” has been revised in the Glossary
  • Appendix K of the Form 990 Instructions has been revised to address whether a donor’s phone bill can adequately substantiate contributions made via text message pursuant to §170(f)(17) of the Internal Revenue Code