IRS Form 990-T, Exempt Organization Business Income Tax Return has existed essentially unchanged since it first appeared in 1951. In a report issued in June 2014, the Advisory Committee on Tax-Exempt and Government Entities (ACT) recommended that the IRS adopt a new Form 990-T. The ACT suggested that the form should be redesigned to be a web-based form that would feature a checklist, links to guidance and other educational materials, and activity-specific worksheets that provide step-by-step processes for calculating revenues and expenses.
While the nonprofit organizations who use the Form 990-T would probably appreciate a more streamlined form and method to report unrelated business income, it does not appear that a redesigned 990-T will be forthcoming. Judith Kindell, Senior Technical Advisor, IRS Tax-Exempt and Government Entities Division, said, while speaking at a recent program in McLean, Virginia, “I would not expect to see a redesigned 990-T anytime soon.” She indicated that the IRS does not have the resources to make that happen.