Changes to Form 990 and How They Affect You

Tax reform has brought about many changes recently, but the 2017 Form 990 and schedules have only a couple very minor updates. We’ve outlined these changes for you in an easy-to-digest format. They are mostly associated with Schedule H and Schedule R instructions, both of which are important for exempt organizations to keep at top of mind.

2017 Form 990 Changes

The minor updates include:

1.Instructions to Schedule H, part V, Section B, have been revised to reflect such Section 501(r) requirements as:

• A community health needs assessment with prioritized descriptions of health needs in the community which must also now be explained,
• Applying a financial assistance policy to all of those who require emergency and other medically necessary care;
  • By the hospital facility,
  • In the hospital facility by a partnership in which the hospital owns a capital or profits interest (unless partnership is an unrelated trade or business).

2. Schedule R instructions with a revised example that show the common control of a related organization.

• There are 1,000 individuals who are members of both Organizations E and F. The members elect the board members of both Organizations E and F.

What Do These Changes Mean for You?

While Form 990 and its schedules have undergone very minor changes, it is still very important for a tax-exempt organization to understand how their form 990 was completed and why the IRS is requesting specific information on the form. The IRS is using the 990 for its data-driven approach to select organizations for audit examinations. If you need assistance completing Form 990 or understanding the questions, potential schedules or instructions, please contact your Sikich advisor.