IRS Announcement 2012-19 Revises Form 990 Reporting

The Internal Revenue Service announced today in IRS Announcement 2012-19 that it is now optional for Form 990 reporting for exempt organization filers to use information from Schedule K-1 to report interests in the income, expenses, and assets of flow-throughs which they possess an ownership interest. In such regard, an exempt organization may generally continue to report its flow-through interests based on its internal books and records. However, that being said, exempt organizations must continue to use Schedule K-1 to report specified partnership information on both Schedule H and Schedule R of the Form 990.