IRS significantly changes 2010 990 and 990-EZ forms

501h filers must now report lobbying activities and expenses every year

Nonprofits engaged in advocacy should have their 501(h) election form on file with the IRS, ensuring that they are meeting IRS guidelines for advocacy and lobbying. Effective for the 2010 tax year filing, the IRS has clarified the section of the Form 990 filed annually by nonprofits where nonprofits report their lobbying activities and expenses.

The Instructions for Part II-A clarify that “… this Part needs to be completed by all Form 990 filers for which the 501(h) lobbying expenditure election was valid and in effect during the 2010 tax year, whether or not the organization engaged in lobbying activities during that tax year."

According to the IRS web site, “The 2010 Forms 990 and 990-EZ, schedules and instructions have been revised to modify and clarify certain reporting requirements.” Click here to see a chart summarizing the more significant changes to the Form 990, schedules, and instructions for 2010.

Click here to see the complete 2010 Forms 990 and 990-EZ, schedules and instructions. For video, audio and written materials on how to complete the Form 990 and other forms for exempt organizations, go to Form 990 Resources and Tools for Exempt Organizations.