We’ll explore how these forms work, the information you need to include, and how to file them with the IRS.
Non-profit, foundation, and charity Annual Information Return requirements
All tax-exempt organizations, including non-profits, foundations, and charities must file an “annual information return” or notice with the IRS, unless you have an exception, which is rare. These annual information returns mean that you must complete and file one of Form 990, Form 990-EZ, Form 990-N, or Form 990-PF.
Managing a non-profit — The form you need to return to maintain tax-exempt status
The specific form you need to fill in and file tends to depend on how much money your non-profit takes in — your “Gross Receipts,” and the total value of the assets of your non-profit.
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Annual gross receipts and total assets |
Type of 990 form |
|
Gross receipts less than $50,000 |
File 990-N* |
|
Gross receipts less than $200,000 and total assets less than $500,000 |
File 990-EZ or 990 |
|
Gross receipts more than $200,000, or total assets more than $500,000 |
File 990 |
|
Private foundation, regardless of financial status |
File 990-PF |
*Note that even if you only need to file a Form 990-N, you can still choose to file a full 990 return if you choose to do so.
What a Form 990 tax-exempt return and variant forms are used for
The IRS and non-profit organizations use Form 990 and related forms in various ways including:
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IRS — Get information about tax-exempt organizations.
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IRS — Educate non-profits about tax law requirements to maintain 501(c)(3) status.
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IRS — Promote compliance with IRS rules to remain tax-exempt.
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Non-profits — Share information with the public about the organization and programs.
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State gov. — Complete charitable and regulatory oversight of non-profits.
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State gov. — Manage state income tax filing requirements for state income tax-exempt organizations.
Key information for filling in a Form 990-N tax-exempt return
Form 990-N, also known as an e-postcard can only be filed online with the IRS, there is no paper version of the form. You will need the following information to fill in and file a 990-N:
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Employer identification number (EIN).
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Legal name of the non-profit and mailing address.
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Any other names the organization uses.
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Name and address of a principal officer.
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Web site address.
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Confirmation that the organization’s annual gross receipts are $50,000 or less.
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If applicable, a statement that the organization has terminated or is terminating.
That’s it — nice and simple.
Key information for filling in a Form 990-EZ tax-exempt return
The EZ (easy) version of Form 990 is more complex than the 990-N, but not as detailed as the full 990. Here are the key areas you’ll need to provide information on, in addition to what you’d provide in a 990-N.
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Summary of grants, contributions, membership dues, investment returns received, and other income.
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Summary of operational expenses and money spent on running the organization and charitable activities.
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Summary of gross and net income, profit, or loss and total revenue.
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Benefits and salaries paid to various parties and employees.
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Summary of types of assets, their value, and changes in asset value over the year.
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What the non-profit has accomplished in its three largest programs.
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Officers, directors, trustees, and key employees with compensation and benefits.
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Other miscellaneous information and schedules.
Key information for filling in a Form 990 tax-exempt return
Finally, we have the full Form 990. Here’s the information you’ll need to provide, in addition to that shown under Form 990-N and Form 990-EZ above.
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Checklist of required schedules that must also be filed.
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Statements regarding other IRS filings and tax compliance.
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Details of governing body and management.
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Policies and disclosures.
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Complete statement of revenue — how much the non-profit earned from various sources.
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Complete statement of expenses — how much the non-profit spent on various activities.
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Balance sheet — current financial position.
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Reconciliation of net assets.
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Financial statements and reporting declarations.
You will also have to fill in and file additional schedules, depending on the nature, activites, and other factors of your non-profit, foundation, or charity. 990 is a long and complex form, so be sure to get some expert advice when you’re filling it in.
When Form 990 and variants are due to be filed
The IRS defines the dates that these forms must be returned by. We’ve detailed the information below for convenience.
|
Ending date of tax year |
Initial return due date |
Extended due date |
|
December 31 |
May 15 |
November 15 |
|
November 30 |
April 15 |
October 15 |
|
October 31 |
March 15 |
September 15 |
|
September 30 |
February 15 |
August 15 |
|
August 31 |
January 15 |
July 15 |
|
July 31 |
December 15 |
June 15 |
|
June 30 |
November 15 |
May 15 |
|
May 31 |
October 15 |
April 15 |
|
April 30 |
September 15 |
March 15 |
|
March 31 |
August 15 |
February 15 |
|
February 28/29 |
July 15 |
January 15 |
|
January 31 |
June 15 |
December 15 |
How to file Form 990 and variants
These forms can be completed and mailed to the ITRS so they arrive before the due date, or they can be filled in and filed electronically.
Penalties for Not Filing a Form 990 or Variant as Required by the IRS
If a non-profit or other tax-exempt organization doesn’t file a Form 990 annual return or files late, the IRS may penalize the organization with a fine. If an organization does not file as required for three consecutive years, it will automatically lose its tax-exempt status.
What causes Form 990 and variants to be rejected
The IRS will return or reject 990 forms that are incomplete, on the wrong form, or that otherwise contain errors. They will normally provide information on why the form was rejected, so the organization can make corrections and re-file. The most common issues that cause rejection is missing or incomplete schedules.
