IRS Issues Tips for Reporting Executive Compensation on Form 990
Tax-Exempt Organizations Update 05/06/09
In our last alert, we advised readers of an update from the IRS with "tips" on preparing the new Form 990. The IRS has now issued a new update on properly reporting executive compensation on the redesigned Form 990. This new update is part of a series of tips that the IRS plans to issue regarding the redesigned Form 990 and its associated schedules.
In its new compensation tips, the IRS highlights the following issues:
- Identifying which individuals an organization must list on the Form 990;
- Explaining the calendar-year compensation reporting requirements;
- Identifying which organizations need to complete Schedule J, which includes heightened compensation disclosures for certain individuals; and
- Defining what types of compensation are to be reflected on the Form 990, including "reportable compensation," "other compensation," and "deferral of compensation."
This update is intended as a general summary of legal matters and not as specific advice to any particular client. If you have questions concerning the subject matter of this update, please contact your Quarles & Brady attorney.