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.
