IRS Releases Final Form 990 For 2011

The Internal Revenue Service (IRS) has released the final Form 990 for 2011, with most of the significant changes applying to tax-exempt organizations with joint ventures and investment partnerships; foreign activities or investments; and hospitals.

According to an article in Bloomberg BNA, the 2011 instructions require an organization with joint ventures and investment partnerships to use Schedule K-1 reported amounts, rather than amounts from their books and records, to report revenues, expenses, and assets regarding these investments.

Schedule H for tax-exempt hospitals has also been significantly expanded for 2011, partly to accommodate questions relating to the new health care law and hospitals' community needs assessment practices, financial assistance policies, billing and collection practices and emergency care policies.

In the section of the form on board governance practices, the 2011 form requires that if a governing body delegates broad authority to an executive committee or similar committee, the filing organization should explain those responsibilities in Schedule O. The 2011 instructions also clarify that organizations should answer "No" if they merely inform their governing body that a copy of their Form 990 is available upon request, instead of having each of them review the form before filing.