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The IRS just released the draft instructions for Form 990. Here's ASAE & The Center's notice about it:

The IRS this afternoon released draft instructions for the redesigned Form 990 that tax-exempt organizations will file beginning with the 2008 tax year (returns filed in 2009). The draft instructions can be downloaded from the IRS website here: http://www.irs.gov/charities/article/0,,id=181091,00.html .

While the new Form 990 was finalized in late December 2007, the IRS is seeking comments on the 2008 Form 990 instructions to ensure they address the needs of filing organizations. Comments are due by June 1, 2008.

The IRS is requesting comments on all aspects of the draft instructions, including suggestions for further reducing the complexity of the form and the burden on filing organizations. At the beginning of the instructions for the core form and each schedule, the IRS has highlighted specific areas where comments might help. The agency indicated it's particularly interested in comments on the definitions in its glossary, and the instructions for significantly revised or new areas of the form such as compensation, governance, foreign activities, disregarded entities and joint ventures and hospitals. As it did with the Form 990 last summer, the IRS plans to post all comments on the instructions on its website (www.irs.gov).

According to the IRS, the draft instructions are intended to provide specific and clear guidance for completing the core form and each schedule. This approach has increased the length of the instructions, but the IRS believes the new content will make it easier for organizations to complete the form. The IRS has included a number of new tools to enhance compliance and promote more uniform reporting, including a comprehensive glossary of terms; a sequencing list to help organizations determine the order in which to complete sections of the form; and a compensation table to help organizations determine how and where to report compensation data.

ASAE is in the process of reviewing the draft instructions and welcomes feedback from the association community as we work toward submitting comprehensive comments prior to June 1.
For more information about the new Form 990, please contact ASAE's Public Policy Division at 202-626-2703 or email us at publicpolicy@asaenet.org.