October 4, 2022

IRS 990-T Information Disclosure

By Frank Smith, National Nonprofit Tax Leader

IRS 990-T Information Disclosure Nonprofit Tax Services

The federal Form 990-T is the business income tax return filed by tax-exempt entities to report and pay tax on unrelated business income. While the Internal Revenue Service (IRS) is required to publicly disclose the Form 990-T for entities exempt from tax under Sec. 501(c)(3), entities exempt from tax under sections other than Sec. 501(c)(3) are not subject to the same public disclosure requirements for the Form 990-T.

On September 2, 2022, the IRS issued a news statement on IRS.gov regarding improper public disclosure of Form 990-T information available through their Tax Exempt Organization Search (TEOS). Information related to the Form 990-T was inadvertently published for organizations exempt under sections other than Sec. 501(c)(3). This information was available on the TEOS for bulk downloads of machine-readable (“XML”) Form 990-T data, in a section primarily for those with the ability to use machine-readable data. Other more widely used sections of TEOS were not affected.

The IRS has since removed the files from TEOS and will be working with groups that routinely use the XML files to remove erroneous versions and replace them with correct versions as they become available. The IRS continues to review the situation and will contact all impacted filers in the coming weeks.

For additional information on this recent Tax Flash, do not hesitate to contact Frank Smith at Frank.Smith@marcumllp.com, or your Marcum Nonprofit Tax professional.