Nonprofits Can Avoid IRS Visit by Correctly Completing IRS New Form 990

Complying with the IRS has never been more challenging for nonprofit organizations. Following the most extensive redesign of Form 990 in 30 years, nonprofit organizations face increased transparency, public scrutiny, and demands for good governance at a time when competition for charitable contribution dollars is fierce.

The IRS is shining an ever-brighter light on perceived abuses in nonprofit reporting. As IRS Tax Exempt and Government Entities Commissioner Sarah Ingram recently explained, " the more we [IRS] can use the Form 990 to figure out who needs our attention and who doesn't, the less likely we are to show up in your doorstep when you are a compliant taxpayer. " According to Ingram, the IRS is exploring why some organizations have failed to answer new questions or fill out new schedules on governance on the revised Form 990, stating "we [IRS] would like to look a little more closely at the patterns on blank spaces."