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The Treasury Department announced that the IRS will revise Form 990, which is used by tax-exempt organizations, to enhance transparency and combat fraud. Treasury Secretary Scott Bessent stated: "Public money and tax-exempt status demand public accountability," emphasizing the need for clearer reporting on funding sources and uses. The revisions aim to address concerns regarding "fiscal sponsorship arrangements" that may obscure project control and funding. The IRS plans to publish proposed regulations and seek public input before finalizing changes. Treasury Assistant Secretary Ken Kies added: "Tax-exempt status is not immunity from scrutiny," highlighting the expectation for organizations to disclose financial control and allocation. This initiative follows a recent IRS whistleblower alert urging reports of misuse of federal funds by tax-exempt entities.
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