IRS to Revise Tax-Exempt Form Amid Nonprofit Crackdown (1)

The IRS is updating the tax-exempt reporting form to better detect fraud and abuse amid a broader crackdown in the Trump administration on nonprofits.

The Treasury Department Thursday announced the plans to revise Form 990 to better show government contracts, grants, and fiscal sponsorship arrangements. House Ways and Means Committee Chair Jason Smith (R-Mo.) has repeatedly pushed for the IRS to investigate nonprofits that could have ties to terrorism organizations. President Donald Trump also directed the IRS to investigate tax-exempt organizations that could be funding domestic terrorism or political violence.

Fiscal sponsorship refers to arrangements where a tax-exempt entity may ...