In a recent press release, the U.S. Department of the Treasury announced that the Internal Revenue Service (IRS) is developing proposed updates to Form 990 reporting requirements that would provide greater clarity around government grants and contracts, fiscal sponsorship arrangements, and organizational control over funds and activities. The proposed changes are intended to improve both regulatory oversight and public understanding of how tax-exempt organizations receive, manage, and deploy public and tax-advantaged resources.
The Department of Treasury and the IRS confirmed that any proposed changes will be released for public comment prior to implementation. Officials emphasized that stakeholder feedback will play a key role in shaping the final requirements, with careful consideration given to administrative feasibility, proportionality, and reporting burden.
The proposed changes could expand disclosure requirements within Form 990, particularly for organizations that receive government funding or operate under fiscal sponsorship models. Treasury representatives noted that the initiative is designed to promote accountability and transparency, reinforcing that tax-exempt status carries with it an expectation of public trust and scrutiny.
If adopted, the potential changes would mark the most significant update to Form 990 since its major redesign for the 2008 filing year. That overhaul substantially expanded the core form and introduced additional schedules to capture detailed information related to governance, executive compensation, fundraising practices, and program activities. The 2008 revisions reshaped how the IRS evaluates nonprofit compliance and required many organizations to enhance their internal reporting systems.
Nonprofit organizations—particularly those receiving government grants, holding government contracts, or participating in fiscal sponsorship arrangements—are encouraged to monitor developments closely and consider engaging in the public comment process once formal proposals are issued.
The full press release is available here on the Treasury website.
