Form 990 schedules and instructions for 2013 - Form 990, Schedules C, F, I, L and R  

November 12: The IRS posted the final version of Form 990-series forms, schedules, and instructions for tax years beginning in 2013—
  • Form 990, Return of Organization Exempt From Income Tax
  • Schedule C, Political Campaign and Lobbying Activities
  • Instructions for Schedule F, Statement of Activities Outside the United States
  • Schedule I, Grants and Other Assistance to Organizations, Governments, and Individuals in the United States
  • Instructions for Schedule I
  • Instructions for Schedule L, Transactions With Interested Persons
  • Instructions for Schedule R, Related Organizations and Unrelated Partnerships

Annotated versions of text of these releases are provided below.

Changes from 2012 form, schedules

Schedule C and Schedule I generally do not contain significant changes from the 2012 schedules.

However, significant changes to Form 990 itself and to the instructions for Schedules F, I, L, and R include the following:

  • Form 990 clarifies that an organization must file Schedule L, Part II if it reported receivables from or payables to interested persons on Part X (Balance Sheet), Lines 5, 6, or 22. The IRS has not yet finalized Form 990 instructions.

  • Schedule F instructions (read TaxNewsFlash-Exempt Organizations for a discussion of Schedule F)—
    • Require reporting of grants made to "domestic" persons that are "designated" for "foreign" beneficiaries (rather than grants made for "foreign activity")
    • Clarify that investments in foreign-domiciled entities that are traded on a U.S. stock exchange do not require reporting
    • Direct that Forms 3625, 2635-A, and 5713 are not to be attached to Form 990

  • Schedule I instructions—
    • Define new terms “domestic organizations,” “domestic governments,” and “domestic individuals”
    • Remove from Schedule I reporting, grants made to “domestic” persons that are “designated” for “foreign” persons (rather than made for “foreign activity”) (see Schedule F instructions)

  • Schedule L instructions (read TaxNewsFlash-Exempt Organizations for a discussion of Schedule L)—
    • Add section 501(c)(29) organizations to the type of filers that may be required to complete Part I
    • Add contributing employers and sponsoring organizations of VEBAs to the definition of "interested persons" in Part II
    • Expand the definition of "interested persons" in Part III with respect to a 35% controlled entity to include organizations controlled by family members of current or former ODTKEs
    • Provide that a foreign organization are to be treated as a section 501(c)(3) organization in Part IV—and not an interested person—if it is: (1) recognized by a charity in its foreign country; or (2) determined by the filing organization to be the equivalent of a section 501(c)(3) organization

  • Schedule R instructions clarify that a sponsoring organization is not to report a VEBA as “related” unless a factor other than its relationship as a sponsoring organization causes it to be related (read TaxNewsFlash-Exempt Organizations for a discussion of Schedule R).

A reference to a Form 990 webpage on the IRS website has been added to the header of each schedule.

KPMG observation

KPMG tax professionals have annotated versions of these new schedules and instructions, noting new language with “yellow” highlights. Read the KPMG annotated versions:

Read TaxNewsFlash-Exempt Organizations: Form 990 schedules - 2013 Schedule B instructions, for a recent discussion of other final 2013 Form 990-series schedules and instructions.

For more information, contact:

Rick Speizman, Partner-in-Charge of KPMG's Washington National Tax Exempt Organizations Tax group

+1 (202) 533-3084

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