May 2026

The Treasury Department recently announced the IRS would be proposing revisions to Form 990, the annual return that most nonprofits are required to file with the IRS. While the regulatory language has yet to be released, the Department’s focus appears to be on two issues that indeed warrant further scrutiny within the tax-exempt sector: government funding for nonprofits and fiscal sponsorship. This makes the announcement welcome news. Form 990 is a public document, and the most comprehensive source of information about the financials and operations of American nonprofits. Public transparency is the 990’s core purpose, and the Treasury Department’s press release promises to improve this by providing “clearer reporting” in two specific areas.