Form 990 Tax Preparation
990 Tax Form knowledge to keep your 501c3 in compliance
If you’re running a tax-exempt organization, the 990 tax form should be in that mix. Here are five of the most important things you should know about Form 990.
WHAT IS A FORM 990?
The non profit version of a corporate tax return, IRS Form 990 is the document that certain tax-exempt organizations must file each year with the IRS. The 990 enables regulators, funders, journalists, and others to measure a nonprofit’s performance.
WHO MUST FILE FORM 990?
Schools, health and welfare organizations, business leagues, civic associations, museums, private foundations, and a myriad other nonprofit organizations exempt from federal income tax must file this form annually.
Private foundations file Form 990-PF. Larger nonprofits with gross receipts of more than $50,000 must file Form 990 or Form 990-EZ. Smaller nonprofits with gross receipts of less than $50,000 must file Form 990-N.
WHO DOESN’T HAVE TO FILE FORM 990?
Most churches or faith-based organizations, state institutions, and non profit subsidiaries are a few of the organizations that are not required to file. For more information, see the IRS guidelines.
WHEN MUST FORM 990 BE FILED?
You must file your 990, 990-EZ, 990-N, or 990-PF by the 15th day of the 5th month after your accounting period ends. Therefore, if your fiscal year ends on December 31, the 990 is due on May 15 of the following year. Check out
990 filing Due Dates Article!
WHAT IS THE MOST COMMON 990 MISTAKE?
The most common mistake on Form 990 is failing to complete Schedule A, the section of the form that requires charities and certain types of charitable trusts to list the salaries and benefits awarded to top officials and to top-paid independent contractors. This part of the form also focuses on advocacy activity and contains additional questions not covered on the Form 990 itself.
Related Articles
IRS 990 Form 990 EZ
Organizations with less than $200,000 in gross revenue and assets under $500,000 qualify to file Form 990-EZ. The IRS also refers to 990-EZ as the Short Form return. For example, an organization may have $35,000 in gross revenue, which means it ...
Why Should I File the IRS 990 vs 990-EZ or 990N?
Nonprofits with 501(c)(3) tax exemption status are exempted from paying federal taxes. However, they are still required to file their nonprofit's IRS Tax Form 990 or Form 990-N for smaller nonprofit organizations. "Your 990 is more than just a ...
990 PF - Private Foundations
Private Foundations are a specific type of 501(c)(3) tax-exempt organization. All private foundations must file Form 990-PF instead of any other 990 verities, regardless of revenue or assets Blank 990-PF Example Attached!
Will IRS 990-N Filing Satisfy Annual Reporting Requirements?
Submitting Form IRS 990-N can fulfill your annual reporting requirements, as can the other IRS 990 filings for nonprofits: Form 990 or Form 990-EZ. Small non-profits can typically file the 990-N form if their gross receipts and income are $50,000 or ...
990 T -Unrelated Business Income
When a nonprofit organization incurs unrelated business income greater than $1,000, it must file Form 990-T in addition to form 990 (Full Form). Using the same example from above, say the organization sells parking spaces for local events. Since this ...