T.D. 9423, under Sections 170, 507, 509, 6033, and 6043 affect tax-exempt organizations required to file an annual return under Section 6033. The regulations provide guidance relating to the computation of public support, new procedures for organizations seeking classification of public charities, and guidance regarding the reporting of other information required on the annual return.
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Section 817.—Treatment the advance ruling process for new orga- income tax under section 501(a) are gener- of Variable Contracts nizations, change the public support com- ally required to file an annual information putation period for organizations described return reporting gross income, receipts, 26 CFR 1.817-5: Diversification requirements for in sections 170(b)(1)(A)(vi) and 509(a)(1) disbursements and such other information variable annuity, endowment, and life insurance con- and in section 509(a)(2) to five years, con- as the IRS requires. Certain exceptions tracts. sistent with the revised Form 990, and clar- to this filing requirement apply. For ex- This notice provides guidance that an insur- ify that support must be reported using the ample, churches are not required to file ance-dedicated money market fund’s participation organization’s overall method of account- annual information returns. The Treasury in Treasury’s Temporary Guarantee Program for ing. All tax-exempt organizations required regulations direct that the annual infor- Money Market Funds won’t result in a violation of under section 6033 of the Internal Revenue mation return shall be filed on Form 990, the section 817(h) diversification requirements in the Code (Code) to file annual information re- “Return of Organization Exempt From case of a segregated asset account that invests in the turns are affected by these temporary reg- Income Tax” or Form 990–PF, “Return of insurance-dedicated money market fund. See Notice 2008-92, page 1001. ulations. The text of these temporary reg- Private Foundation or Section 4947(a)(1) ulations also serves as the text of the pro- Nonexempt Charitable Trust Treated as posed regulations (REG–142333–07) pub- a Private Foundation.” The regulations Section 6033.—Returns by lished in this issue of the Bulletin. further specify certain information to be Exempt Organizations reported on the return. DATES: Effective Date: These regulations The IRS revises forms and instructions 26 CFR 1.6033–2: Returns by exempt organizations are effective on September 9, 2008. on an annual basis to reflect changes in the (taxable years beginning after December 31, 1969) Applicability Date: These regulations law and evolving tax administration needs. and by certain nonexempt organizations (taxable apply to taxable years beginning on or after years beginning after December 31, 1980). On December 20, 2007, the IRS released January 1, 2008. a redesigned Form 990. The Form 990 had not been significantly revised since T.D. 9423 FOR FURTHER INFORMATION 1979, and both the IRS and stakeholders CONTACT: Terri Harris at (202) regarded the form as needing major revi- Department of the Treasury 622–6070 (not a toll-free number). sion to keep pace with changes in the law Internal Revenue Service SUPPLEMENTARY INFORMATION: and with the increasing size, diversity, and 26 CFR Parts 1 and 602 complexity of the exempt sector. The new Paperwork Reduction Act form incorporates many recommendations Implementation of Form 990 made in public comments on the discus- The collection of information contained sion draft released on June 14, 2007. With AGENCY: Internal Revenue Service in these temporary regulations has been the exception of certain smaller organiza- (IRS), Treasury. reviewed and approved by the Office of tions for which there is a graduated transi- Management and Budget in accordance tion period, organizations must begin us- ACTION: Final and temporary regula- with the Paperwork Reduction Act of 1995 ing the new form for the 2008 tax year tions. (44 U.S.C. 3507(d)) under control number (returns filed in 2009). The current Form 1545–2117. An agency may not conduct 990 will be used for tax year 2007 (returns SUMMARY: This document contains fi- or sponsor, and a person is not required filed in 2008) but will be replaced with the nal and temporary regulations necessary to to respond to, a collection of information redesigned Form 990 beginning with the implement the redesigned Form 990, “Re- unless it displays a valid control number 2008 tax year. Earlier this year, the IRS re- turn of Organization Exempt From Income assigned by the Office of Management leased draft instructions for the new form Tax.” The final regulations contained in and Budget. Books or records relating to a and schedules for public comment. this document make only nonsubstantive collection of information must be retained These regulations make the revisions revisions to comply with Federal Regis- as long as their contents may become ma- that must be made to the regulations under ter requirements. The temporary regula- terial in the administration of any internal sections 6033 and 6043 of the Code to tions make revisions to the regulations un- revenue law. Generally, tax returns and implement the Form 990 redesign. For ex- der section 6033 and section 6043 to al- tax return information are confidential, as ample, the regulation that currently gives low for new threshold amounts for report- required by 26 U.S.C. 6103. organizations a choice of using either the ing compensation, to require that compen- calendar year or the organization’s an- Background sation be reported on a calendar year ba- nual accounting period as the basis for sis, and to modify the scope of organiza- Form 990 reporting compensation of officers, direc- tions subject to information reporting re- tors, trustees and certain employees and quirements upon a substantial contraction. Under section 6033 of the Code, or- contractors is revised to require calendar The temporary regulations also eliminate ganizations that are exempt from Federal year reporting. Revisions are also made 2008–43 I.R.B. 966 October 27, 2008 to allow for new threshold amounts for if it normally receives at least 10 percent of The effect of the current rule rega
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