GCSAA chapters to use revised 990 tax form in 2009

For the 2008 tax filing year (returns to be filed in 2009), exempt organizations -- including GCSAA-affiliated chapters -- will be working with a completely redesigned Form 990 or 990-EZ – the first major overhaul of these documents in 30 years.

The 990 tax return is filed annually by tax-exempt and non-profit organizations to provide the IRS with annual financial information. The form is intended to give the IRS and the public more information about tax-exempt organizations.

According to the IRS, the redesigned 990 tax return should "enhance transparency, promote tax compliance, and minimize burden" for reporting organizations.

All GCSAA-affiliated chapters must file at least some version of the 990 tax return next year. Under the old rules, chapters with annual gross receipts under $25,000 did not need to file a return. Now chapters with annual gross receipts under $25,000 are required to file the new Form 990-N, or "e-Postcard," to report basic information on the organization. Starting with the 2010 tax year, the IRS will increase the filing threshold for organizations required to file Form 990-N (the e-postcard) from $25,000 to $50,000.

Chapters with more than $25,000 in gross revenues must file either the Form 990 or 990-EZ. Affiliated chapters that meet this criterion are required to forward a copy of the 990 tax form to GCSAA as part of their annual reporting. Affiliated chapters with less than $25,000 are required to submit a year-end financial report to GCSAA as part of the affiliation reporting.

Several significant changes have been included in the redesigned Form 990 tax form. The new Form 990 includes an 11-page core form and 16 schedules, many of which are new. The IRS is now delving deeper into organization’s executive and key employee compensation, political activities, and governance among other areas. You may need to make changes in your operations and procedures in the future to file the Form 990. You’ll want to make sure you have policies in place that address governance, compensation and other issues.

Unlike Form 990, which has been extensively redesigned for 2008, the 2008 Form 990-EZ is little changed. It now consists of a 4-page core form and up to seven schedules. The new Form 990-EZ instructions provide filing organizations two options to report compensation for its officers, directors, trustees, and key employees.

The IRS is providing a three year graduated transition period for smaller organizations to start using the revised Form 990. This will be accomplished by allowing significant numbers of small organizations to file the Form 990-EZ, rather than the new Form 990, for 2008 and 2009. Beginning with 2008 tax years, an organization may file a Form 990-EZ (rather than a Form 990) if it satisfies both the gross receipts and assets tests set forth in this table.

The final Form 990 and Form 990-EZ and background material explaining the changes from the current form are available on the Exempt Organizations portion of the IRS Web site at www.IRS.gov/eo.

To ensure your chapter is prepared for the new requirements, GCSAA recommends that you discuss the changes with your accountant and/or legal advisor as soon as possible. For further information, please feel free to contact Cameron Oury, GCSAA, Managing Director of Finance, at 800-472-7878, ext. 4402 or coury@gcsaa.org. You may also contact the IRS at 877-829-5500 Monday-Friday to get help completing Form 990 or Form 990-EZ.