IRS to Revamp Form 990 to Enhance Transparency and Accountability in Charities
The Treasury Department has announced that the Internal Revenue Service (IRS) will be revising Form 990, which is used by tax-exempt organizations, including charities, to improve transparency and uncover potential fraud and hidden funding sources. This initiative aims to provide clearer reporting on the activities of organizations operating under Section 501(c)(3) of the Tax Code. The revisions are intended to help the IRS and the public better understand the sources and uses of funding from government contracts and grants, thereby reducing the risk of fraud, abuse, and misuse of taxpayer dollars. Treasury Secretary Scott Bessent emphasized the need for public accountability, stating that transparency can lead to scrutiny and accountability under the law. The Treasury is particularly focused on fiscal sponsorship arrangements, which have raised concerns about obscuring project operations and fund control. Proposed regulations will be published for public comment before finalizing any changes. 
