IRS issues new disclosure rules for tax-exempt organizations

The IRS earlier this year issued new regulations that tax-exempt organizations must follow in disclosing to the public certain documents as directed by the Omnibus Budget Reconciliation Act of 1987 (OBRA87) and the Taxpayer Bill of Rights 2 of 1996. The new rules went into effect June 8, 1999. Complying with these rules may pose difficulties in terms of the increased exposure of the documents that must be disclosed, increased labor, time limitations, and penalties, some of which can be imposed upon a director or officer. An organization can escape some of the burden of responding to requests by posting the documents on its Web site, but it still must make the documents available for inspection at its principal office and certain regional offices.