Watch out For Proposed IRS Changes to Fiscal Sponsorships

The House Committee on Ways and Means released a committee markup of H.R. 9721, the “Fiscal Sponsorship Transparency Act of 2026.” https://www.congress.gov/bill/119th-congress/house-bill/9721/text

 Charities watch out.

PROPOSED CHANGES that would apply to taxable years beginning after December 31, 2027 (i.e. 2028 tax returns) include :

 (a) additional Form 990 disclosure and

(b) a possible tax on the organization AND foundation manager on "improper conduit arrangements."