IRS Panel Recommends Mandatory E-Filing of Form 990s

The Internal Revenue Service's Advisory Committee on Tax Exempt and Government Entities has called for the agency to require nonprofits to file financial data electronically, the Chronicle of Philanthropy reports.

According to the committee, a survey of 468 nonprofits found that less than 2 percent of organizations that file the financial form for tax-exempt organizations considered mandatory e-filing a burden. Large nonprofits already are required to file electronically, and the smallest file the 990-N, also known as the "e-postcard," which has always been electronic.

The panel's recommendation to support a congressional mandate to require electronic filing of 990s includes a number of interim measures...