Treasury Announces Form 990 Transparency Initiative to Expose Hidden Funding, Strengthen Oversight

The U.S. Department of the Treasury recently announced that the Internal Revenue Service (IRS) plans to revise 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, including government contracts, government grants and fiscal sponsorship arrangements. The changes are intended to detect misconduct and hold wrongdoers accountable.

Government grants and contracts can involve substantial public funds. Clearer reporting in these areas can help the IRS and the public better understand the sources and uses of that funding, support proper revenue classification and reduce the risk of fraud, abuse and misuse of taxpayer dollars.

“Public money and tax-exempt status demand public accountability,” said Trump-appointed Treasury Secretary Scott Bessent. “We are ending the days of hiding [allleged] fraud, abuse and extremist activity behind complicated nonprofit arrangements. When bad actors misuse charitable structures, directors and officers should understand that transparency can lead to scrutiny, accountability and liability under the law.”

Please select this link to read the complete press release from the Treasury Department.