August 1 Deadline for Comments to IRS on Form 990 Proposed Refinements
Readers working at a non-profit organization, a management company that serves non-profits, or working as a non-profit contractor will want to know that August 1 is the deadline for comments to the IRS on proposed refinements to Form 990 regulations. Read on to see why you may care.
- Filing organizations that make payments to management companies or other third parties are an area of concern. A recent notice from ASAE just stated that, “The IRS said it has received some concern that organizations could shield compensation to highly-paid executives by paying those executives indirectly through management companies. Currently, management company fees are reported as payments to an independent contractor and their salaries are not disclosed along with those of key employees or highest-paid employees.”
- Also per the ASAE bulletin, the IRS is “considering whether the thresholds for reporting compensation to key employees, highest compensated employees and independent contractors should be lowered, raised or retained as is.” At issue is “concern that the thresholds for reporting compensation are too high, thereby decreasing transparency, and others have suggested that a single, uniform reporting threshold should be adopted.”
View the IRS request for public comments. Submit comments electronically via email to Form990Revision@irs.gov. Thank you, ASAE (for keeping us all informed. Want to know more about ASAE? Visit them here.