Insights: Article

2017 Form 990: What You Need to Know

By Laurie Hanson

March 01, 2018

No changes were made to Form 990 for 2017. And, only one change was made to a schedule supporting Form 990, shown as follows:

Schedule D, Supplemental Financial Statements. This schedule is used primarily to support information provided on the balance sheet. A change was made to Part II, Conservation Easements. The schedule now asks for the number of conservation easements on certified historic structures that were acquired after July 25, 2006, that are not listed as historic structures in the National Register. The question is not new, except that the date changed from August 17, 2006, to July 25, 2006, effective on the 2017 schedule.

Other Items of Interest
Goods or services with insubstantial value have been indexed for inflation. Therefore, the value of items displaying the organization’s name or logo that are given to donors in exchange for a donation do not need be disclosed to the donor if the value is $10.70 or less.

In accordance with recent tax reform law changes, payroll tax withholding tables for 2018 have been updated. The updated tables give effect to the increase in the standard deduction, repeal of personal exemptions, and changes in tax rates and brackets effective for tax years beginning Jan. 1, 2018. The new tables are to be used no later than Feb. 15, 2018. 

An organization with foreign financial accounts having an aggregate value exceeding $10,000 at any time during the calendar year is required to file FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR) by April 15 of the year following the year being reported. A six-month extension is available. This reporting date is new for any tax year that begins on or after January 1, 2016, previously, this report was due June 30 with no extensions.

The Bipartisan Budget Act of 2018, signed into law on Feb. 9, 2018, brought forth a significant change to the rules related to excess business holdings by private foundations. Under the new law, a private foundation will not be subject to the 10 percent tax imposed on excess business holdings for holding 100 percent of the voting stock in a business enterprise, acquired other than by purchase, which is held at all times during the taxable year by the private foundation, so long as that business enterprise is independently operated. This change is effective for tax years beginning after Dec. 31, 2017.

Looking Forward
We know changes will be required to the 2018 Form 990 and Form 990-T to reflect changes due to tax reform. We will continue to provide updates on tax reform, and other legislative changes, as information becomes available. 

Please contact your Eide Bailly nonprofit tax advisor to discuss any of the above items.

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