Additional Reporting Requirements

Filers of Form 990, Return of Organization Exempt From Tax) must now disclose the amount of taxes that the organization paid during the year under Code Secs.:

• 4911, excess expenditures to influence legislation; 
• 4912, disqualifying lobbying expenditures;
• 4955, political expenditures; and 
• new 4958, excess benefit transactions. 

Organizations are also required to disclose the amount of any excess benefit tax paid by a disqualified person.

Tax-Exempts Must Produce Returns

Public inspection rules are liberalized.

Organizations generally must comply with written or in-person taxpayer requests.

Organizations need not comply if the documents requested are widely available or IRS determines upon application by the organization that the organization was subject to harassment.

The penalty for willful failure to allow public inspection is increased to $5,000.

Effective for requests made on or after the 60th day after IRS first issues regulations.