Last October, Senate Finance Committee Ranking Member Max Baucus (D-MT) released a report examining interactions between five tax-exempt organizations and lobbyist Jack Abramoff and his associates, finding instances of serious abuse. And now most recently, the founder of one of those organizations was charged with tax evasion and obstruction of justice as part of the continuing federal criminal investigation.

Senator Max Baucus (D-MT) has made another noteworthy formal communication to Treasury Secretary Paulson, this time along with ranking Finance Committee member Charles Grassley (R-IA). The leaders of the Senate Finance Committee have urged Treasury to update Form 990, the federal tax form nonprofits file each year to report tax information, so that the financial operations of nonprofits can be better understood. There is a particular focus of concern on scrutinizing hospitals and universities.

The Georgetown University Law Center held a conference titled, "Representing and Managing Tax-Exempt Organizations 2007." BNA Money and Politics ($$) reported on much of its content, including news that Congress may be making technical corrections to some of the provisions of the Pension Protection Act (PPA). The Internal Revenue Service (IRS) also issued a new question-and-answer document to help exempt organizations file their 2006 Form 990s.

Since the Pension Protection Act of 2006 (PPA) tax exempt organizations that gross $25,000 or less will be required to annually file electronically Form 990-N, also called the e-Postcard. Starting in 2008, this filing requirement applies to tax periods beginning after December 31, 2006. The Internal Revenue Service (IRS) plans to mail educational letters beginning in July 2007 to the small organizations that may now have to file the e-Postcard. Changes to the 2006 Forms 990 and 990-EZ and Schedule A were discussed in Phone Forums in March. For more information visit the IRS website.