Advisory Committee on Tax Exempt and Government Entities (ACT ...

More documents

Recommendations

Info

The Appropriate Role Of The Internal Revenue Service With Respect To Tax-Exempt Organization Good Governance IssuesAPPENDIX 5. EVOLUTION OF FORM 990 There has been an evolution over the last 66 years in the IRS’s interest in what wewould today characterize as charities’ governance as evidenced in the Form 990,Return of Organization Exempt from Income Tax. The Form 990 has grown from twopages (1942 Form 990) to an eleven-page core form with Schedules A through R for2008. On the 1942 Form 990, two officers were required to sign an Affidavit. Thisversion of the form contains only three questions about the exempt organization,including “have your articles of incorporation or by-laws or other instruments of similarimport been amended since your last return was filed, if so attach a copy.” In reviewingthe Forms 990 since 1960, we see increased inquiry in areas directly related toinurement and the operational test. Over time, more of these governance-type inquirieshave become more attenuated to the tax laws, presumably on the assumption that goodgovernance practices in a general sense result in more likely tax compliance.The 1960 Form 990-A was expanded to include fifteen questions about theorganization, some of which go directly to the organizational test and, today, can beviewed as inquiring about governance practices. For example, Question 14 asked ifcertain persons (creator, contributor, relative of creator/contributor, or corporationowned 50% of more by creator/contributor) entered into any of the following financialtransactions with the organization:• Borrow any part of income or corpus?• Receive compensation for personal services?• Have any part of the organization’s services made available to him?• Purchase any securities or other property from the organization?• Sell any securities or other property to the organization?• Receive any of the organization’s income or corpus in other transactions?If the answer to any was “yes,” a detailed statement was required.The 1962 Form 990-A instructions required a schedule to be attached reporting“compensation of officers, directors, trustees, etc., showing name, position, timedevoted to position, salary, and expense account allowances.” In order to betterunderstand the relationships surrounding the organization, the 1963 Form 990-Ainstructions add the reporting of “…the relationship, if any, by blood, marriage, adoption,or employment, of each such person to the creator of the organization (if a trust), to anyperson who has made a substantial contribution to the organization, or to a corporationcontrolled (by ownership of 50 percent or more) directly of indirectly, by such creator orcontributor.”In 1964, the instructions for this disclosure were updated to require a schedule showingwhether each official (“officer, director, trustee, etc.”) was:ADVISORY COMMITTEE ON TAX EXEMPT AND GOVERNMENT ENTITIES (ACT) June 11, 2008 98
The Appropriate Role Of The Internal Revenue Service With Respect To Tax-Exempt Organization Good Governance Issues• The creator or a substantial contributor,• A brother or sister, spouse, ancestor, lineal descendent of the creator orsubstantial contributor,• An employee of the creator or substantial contributor or of a businessventure owned 50% or more by the creator and/or substantial contributor,• An attorney or accountant of the creator or substantial contributor or of abusiness venture owned 50% or more by the creator and/or substantialcontributor, or• None of the aboveThe 1969 instructions related to Schedule B included an update to the requirements forthe schedule showing common ownership of any corporation, and required thefollowing:• The class of stock and number of shares owned at the beginning and end ofthe year by the parties described in (a) through (d), and• To designate the parties by relationship to the organization, not by individualnames.The 1973 Schedule A included several new questions related to governance. Question2 asked if the organization is related through common membership, governing bodies,trustees, officers, etc. to any other exempt or nonexempt organization (if “yes,” identifythe organization and describe relationship). Question 3 asked if the organizationengaged in the following acts with a trustee, director, principal officer, creator, or anyaffiliated organization. or corporation: sale, exchange, leasing of property; lending ofmoney or other extension of credit; furnishing of goods, services, or facilities; paymentof compensation or reimbursement of expenses; transfer of income or assets. .The list of Officers, Directors, and Trustees included Key Employees for the first time onthe 1992 form. A “key employee” was defined in the 1992 instructions as any personhaving responsibilities or powers similar to those of officers, directors, or trustees.After the enactment of Intermediate Sanctions, a series of questions was added to the1996 Form 990 that addressed whether the organization engaged in (or became awareof) an excess benefit transaction during the reporting year. In addition, organizationsare asked to disclose whether any excise tax has been remitted by the organization orits managers and to disclose whether they reimbursed a manager for such an excisetax.In 2005, Line 75d asking about whether the organization has a written conflict of interestpolicy was added. In an apparent step toward determining how many board membersare independent, there were two additions: Line 75a asked for the number of boardmembers who can vote on organization matters; and Line 75b asked aboutADVISORY COMMITTEE ON TAX EXEMPT AND GOVERNMENT ENTITIES (ACT) June 11, 2008 99
Page 5:
ADVISORY COMMITTEE ON TAX EXEMPT AN
Page 9 and 10:
MEMBER BIOGRAPHIESGOVERNMENT ENTITI
Page 11 and 12:
GENERAL REPORTOF THEADVISORY COMMIT
Page 13:
General Report of the Advis
Page 18:
Improving the Employee Plans Compli
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
EXHIBIT DSubmission Type:(insert fr
Page 73 and 74:
EXHIBIT D (CONTINUED)18. Descriptio
Page 75 and 76:
EXHIBIT D (CONTINUED)VCP CHECKLISTT
Page 77 and 78:
EXHIBIT D (CONTINUED)23. Have you i
Page 79 and 80:
EXHIBIT D (CONTINUED)Instructions f
Page 81 and 82:
EXHIBIT D (CONTINUED)23. Under Exam
Page 83 and 84:
ADVISORY COMMITTEE ONTAX EXEMPT AND
Page 85:
The Appropriate Role Of The Interna
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135: The Appropriate Role Of The Interna
Page 201: The Streamlined Closing Agreement F
Page 204 and 205: The Streamlined Closing Agreement F
Page 217: ADVISORY COMMITTEE ONTAX EXEMPT AND
Page 220 and 221: PROTECTING PLAN BENEFITS:IMPROVING
Page 234 and 235:
PROTECTING PLAN BENEFITS:IMPROVING
Page 236 and 237:
Page 238 and 239:
Page 240 and 241:
Page 242 and 243:
Page 244 and 245:
Page 246 and 247:
Page 248 and 249:
Page 250 and 251:
Page 252 and 253:
Page 254 and 255:
Page 256 and 257:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
Page 267:
Page 271 and 272:
Tax Treatment Of Cellular Telephone
Page 273 and 274:
Page 275 and 276:
Page 277 and 278:
Page 279 and 280:
IRC, 2007-CODE-VOL, SEC. 280F. LIMI
Page 281 and 282:
PENIRC S 274 Page 1 of 12IIRC, 2007
Page 283 and 284:
PENIRC S 274 Page 3 of 12relationsh
Page 285:
Employee Cell Phones Page 1 of 1Emp
Page 289 and 290:
15. Special Rules for Various Types
Page 292:
Withholding RequirementsACCOUNTING
Page 299:
Page 303 and 304:
Governmental Relationship and Commu
Page 305 and 306:
Page 307 and 308:
Page 309 and 310:
Page 311 and 312:
Page 313 and 314:
Page 315 and 316:
Page 317 and 318:
Page 319 and 320:
Page 321 and 322:
Page 323 and 324:
Page 325 and 326:
Page 327 and 328:
show all

Advisory Committee on Tax Exempt and Government Entities (ACT ...

Create successful ePaper yourself

Delete template?

Save as template?