AICPA Urges One Threshold for Reporting Compensation on Form 990

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The American Institute of Certified Public Accountants asks IRS to allow exempt organizations to use a single reporting threshold for telling the government about the compensation paid to its employees and other individuals on Form 990. Among a broad range of changes and clarifications to the form, used by tax-exempt organizations to report their finances and business activities to the government, AICPA says charities should be allowed to use a threshold of $150,000 for such reporting. “We think that the substantial majority of employees that may be receiving excessive compensation would be reported with a threshold of $150,000,” AICPA notes. The 11-page letter to IRS comes as the agency is seeking input from the EO community on how to refine the form, which must be publicly disclosed.