What are some Common 990 Filing Errors?

What are some Common 990 Filing Errors?

  • The most common error is forgetting or not knowing to file the IRS Form 990. Failing to complete the 990 for three consecutive years can result in losing 501(C)(3) status.
  • Incomplete 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.
  • Failing to note primary exempt mission as required in the statement of program accomplishments.
  • Arithmetic errors account for about 20% of all 990 tax returns.
  • Not having the signature of any of the organization’s officers.
  • Failure to attach required supporting schedules.
  • Not listing the correct tax year.

    • Related Articles

    • 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-N Detailed Overview - Should I do myself or Hire BryteBridge?

      990-N Detailed Overview What is IRS Form 990-N? The 990N is a convenient filing process the IRS makes available to help ease the financial reporting burden for smaller nonprofits through a straightforward process. Organizations with less than $50,000 ...

    • IRS 990 Form

      To keep things confusing, the IRS Return of Organization Exempt From Income Tax is Form 990. There is no additional designation. At BryteBridge, we refer to form 990 as the Full Form because it is the complete 990 annual report. Organizations with ...

    • What is the deadline for filing Nonprofit Form 990 and Form 990-N?

      What is the deadline for filing Nonprofit Form 990 and Form 990-N? 501c3 organizations are exempt from federal taxes. However, they must still file Form 990 with the IRS each year. This annual report is due on the 15th day of the 5th month after a ...

    • How significant are the taxes on unrelated business activities?

      The tax rates are the same as those that apply to regular corporations on Form 1120. However, an exempt association files Form 990-T to report unrelated business taxable income. Most associations, simply by the nature of their operations, will not ...