The purpose of the Internal Revenue Service's 2008 revision of the Form 990 is to simplify and shorten the form so that it takes less time for not-for-profit organizations to complete.

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The purpose of the IRS overhauling the Form 990 is threefold: (1) to enhance transparency about the organization, (2) allow the IRS to efficiently assess noncompliance, and (3) minimize the burden of filing on tax-exempt organizations. Although many smaller organizations will be able to prepare the postcard Form 990-N, it is likely that other not-for-profit organizations will find that the revised form takes more time as it incorporates governance and executive compensation questions.

The Purpose of the Internal Revenue Service's 2008 Revision of the Form