OMB Watch Comments on Electronic Filing of Form 990

With more and more individuals filing their taxes electronically, it should come as no surprise that the IRS is looking to expand e-filing to other venues. The comment period has just closed on the IRS Form 990 e-filing proposal, and they report receiving many positive comments on the proposal. OMB Watch's comments focused on public use of Form 990 data, citing the 15,000 daily visitors that access GuideStar to find financial data on charities, often as a precursor to making donations. Data on GuideStar consists of scanned 990 forms, and as such is not searchable. Electronic submission of data would allow for a much more powerful database of information taken from Form 990. The comments also point out that electronic submission would simplify the reporting process for nonprofits, especially because many states accept Form 990 for state reporting requirements. Electronic filing would also make the job of regulators easier. Comments from Independent Sector also strongly encouraged the IRS to implement e-filing, citing the increased ease of filing for nonprofits, and cautioned that electronic filing must indeed be made easier than paper filing. The Urban Institute also filed comments that stressed the importance of e-filing for those who conduct research on the nonprofit sector. Independent Sector and the Council on Foundations are providing leadership for a group of organizations working on this issue. The activity of the group is called the Electronic Data Initiative for Nonprofits (EDIN). Contact Independent Sector’s Pat Read at 202/467-6100 for more information.
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