A Montana federal district court judge recently set aside the IRS’s Revenue Procedure 2018-38, which had eliminated IRS Form 990 Schedule B disclosure requirements for Section 501(c)(4) and other tax-exempt entities but left intact such requirements for Section 501(c)(3) organizations.
As most nonprofit leaders recognize, tax-exempt organizations must file an annual IRS Form 990. Until now, only very large or very small nonprofits were required to e-file. In addition, a nonprofit could lose its tax-exempt status without prior IRS notice, upon three consecutive years’ failure to file Form 990s. But under the newly enacted Taxpayer First Act (H.R. 3151) (“Act”), effective July 1, 2019, the Form 990 filing landscape has changed significantly.