Earlier this year the IRS issued drafts of the 2013 Form 990, Return of Organization Exempt From Income Tax, and 2013 Form 990 Instructions.   Although there were no major changes to the Form 990, there were several changes and clarifications in the draft instructions, including:

• Short Period Returns.  The draft instructions clarify that a short period return cannot be filed electronically unless it is appropriately designated as an initial return or final return.
• Change in Accounting Method.  The draft instructions provide that an organization that files Form 990-N (electronic postcard) must report its accounting changes on Form 990, Form 990-EZ or Form 1128.
• Documentation.  The draft instructions clarify what documentation must be attached to Form 990 to support a name change, or by an organization that has terminated, dissolved, merged or had its exemption revoked by the IRS.
• Public Support Test.  The draft instructions clarify when an organization can exclude from Schedule B contributors that fall below the greater-than-$5,000/2% threshold.  In order to limit the contributors an organization reports on Schedule B, an organization must complete the “support tests” in Schedule A, Part II.