22 February 2018

EY-annotated Form 990 and instructions highlight changes for 2017

EY has prepared annotated versions of the 2017 federal Form 990 (Return of Organization Exempt From Income Tax), schedules and instructions that show what Form 990 changes the IRS has made for tax year 2017. These documents (which are attached) highlight changes from tax year 2016, explain significant changes, and include a Table of Contents from which a reader can hyperlink to particular parts of the form and specific schedules and instructions.

Changes to the 2017 federal Form 990, schedules and instructions

The majority of changes to the 2017 federal Form 990, schedules and instructions consist of minor clarifications and updates. However, changes of note include:

1. The instructions to Schedule H, Part V, Section B, have been revised to reflect the Section 501(r) requirements that: (a) the community health needs assessment includes prioritized descriptions of significant health needs in the community (which now must be explained in Part V, Section C), and (b) the financial assistance policy must apply to all emergency and other medically necessary care provided (i) by the hospital facility, and (ii) in the hospital facility by a partnership in which the hospital owns a capital or profits interest, unless the provision of care by that partnership is an unrelated trade or business.

2. The instructions to Schedule R include a revised example illustrating common control of a related organization.

Implications

Few significant changes to the 2017 Form 990, schedules and instructions have been made from the 2016 versions. This reflects the IRS Tax Exempt and Government Entities Division's shift from redesigning Form 990 to using Form 990 as a source for its data-driven approach to exam case selection. Thus, exempt organizations should continue to complete Form 990 and its associated schedules pursuant to the instructions, while incorporating any changes to the instructions into their compliance procedures.

Please contact your Ernst & Young LLP professional for further information.

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RELATED RESOURCES

— For more information about EY's Exempt Organization Tax Services group, visit us at www.ey.com/ExemptOrg.

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Contact Information
For additional information concerning this Alert, please contact:
 
Tax-Exempt Organizations Group
Steve Clarke(202) 327-6064
Terence Kennedy(216) 583-1504
Melanie McPeak(813) 225-4950
Amber Gazica(202) 327-7550
John Rigney(314) 290-1106

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Other Contacts
Exempt Organizations Tax Services Markets and Region Leadership
Scott Donaldson, Americas Director – Phoenix(602) 322-3062
Mark Rountree, Americas Markets Leader and Health Sector Tax Leader – Dallas(214) 969-8607
Bob Lammey, Northeast Region and Higher Education Sector Leader – Boston (617) 375-1433
Bob Vuillemot, Central Region – Pittsburgh(412) 644-5313
John Crawford, Central Region – Chicago(312) 879-3655
Debra Heiskala, West Region – San Diego(858) 535-7355
Joyce Hellums, Southwest Region – Austin(512) 473-3413
Kathy Pitts, Southeast Region – Birmingham(205) 254-1608

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ATTACHMENTS

2017 Form 990

2017 Form 990 Instructions

Document ID: 2018-0393