On April 23, 2026, the U.S. Department of the Treasury (Treasury) announced that the Internal Revenue Service (IRS) plans to revise Form 990, Return of Organization Exempt from Income Tax, to enhance transparency and strengthen oversight of tax‑exempt organizations.
The initiative signals upcoming changes that will affect how nonprofits report certain activities, particularly those involving public funds and complex organizational structures.
Although specific revisions have not yet been released, Treasury confirmed that proposed regulations will be issued with an opportunity for public comment before any changes are finalized.
The announcement stated that the areas of focus for the revisions will be in two key areas.
- Government grants and contracts: Revisions will be intended to help regulators and the public better understand how significant public resources are being used and to reduce the risk of misuse.
- Fiscal sponsorship arrangements: Form 990 revisions are expected to require clearer disclosures regarding oversight, control, and financial accountability in fiscal sponsorship relationships.
This announcement represents a clear signal that Form 990 reporting is evolving. While Treasury will consider proportionality and administrative feasibility, nonprofits should view transparency and consistency in reporting as increasingly critical.
Schneider Downs will continue to monitor developments and provide updates as additional guidance is issued.
About Schneider Downs Not-for-Profit Services
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To learn more, visit our Not-for-Profit Industry Group page.
