Published May 10, 2013

Tax-Exempt Organizations: Reporting Changes You Need to Know for 2012 Forms

In preparation for the May 15, filing deadline, a summary of the key changes to the 2012 Form 990 (for organizations whose tax year began in 2012) is provided below:

Governance, Management, and Disclosure

  • Line 18 regarding disclosure of Forms 1023, 1024, 990, and 990-T now includes a new check box, “Other (explain in Schedule O).”

Compensation

  • Section A, column (B) asks for reporting of average hours-per-week worked for related organizations, in addition to hours worked for the filing organization.

Revenue

  • Filers are no longer required to report their share of revenue of joint ventures and other partnerships using Schedule K-1 (Form 1065); instead, they can report according to their books and records.
  • The instructions clarify that a section 501(c)(3) organization that is an S-corporation shareholder must treat all allocations of income from the S corporation as unrelated business income.

Expenses

  • A filer must list the type and amount of each line 11g (Other Fees for Services) expense on Schedule O when the amount on line 11g exceeds 10% of total functional expenses.

Balance Sheet

  • Filers are no longer required to report their share of assets of joint ventures and other partnerships using Schedule K-1 (Form 1065); rather, they can report according to their books and records.

Net Assets

  • New lines are included (formerly included in Schedule D, Part XI) for net-unrealized gains (losses) on investments, donated services, and use of facilities, investment expenses, and prior-period adjustments.

Financial Reporting

  • Former line 2d is eliminated (whether financial statements were issued on a separate or consolidated basis) and lines 2a and 2b are expanded to ask whether financial statements were compiled, reviewed, or audited on a separate or consolidated basis.

If you would like to discuss the implications of these form changes on your organization, please contact the expert listed below at PYA, (800) 270-9629.

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