Treasury Dept.: Form 990 Initiative to Improve Transparency

The Department of the Treasury announced on April 23, 2026, that the Internal Revenue Service (IRS) will be revising the Form 990 to “improve transparency, strengthen tax administration, and provide clearer reporting on certain activities of tax-exempt organizations described in section 501(c)(3) of the Internal Revenue Code. . . . The changes are intended to detect misconduct and hold wrongdoers accountable.” Specified activities include government contracts and grants, and fiscal sponsorship arrangements. By gaining a greater understanding of both the sources and uses of public funds, the IRS hopes to reduce the probability of fraud and misuse of taxpayer- funded dollars. Treasury and the IRS expect to promulgate proposed regulations with opportunity for public comment prior to finalization.