Form 990 - Everything the nonprofits should know
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An Overview of IRS Form 990
- Updated April 21, 2023 - 2.00 PM Admin, ExpressTaxExemptThe organizations which obtained tax-exempt status from the IRS are required to file tax returns annually with the IRS.
IRS Form 990 (Return of Organization Exempt From Income Tax) is used by such organizations to report their annual information to the IRS.
In this article, we have covered the following topics to provide clear details on Form 990 requirements, deadlines, and other related information.
Table of Content
2. Who must file IRS Form 990?
3. What’s New for the 2023 Tax Year?
4. When is the deadline to file Nonprofit tax Form 990?
6. Additional Requirements For Form 990
7. Is there an extension for Form 990?
8. What are the penalties for late filing or incorrect filing of Nonprofit Form 990?
1. What is IRS Form 990?
Form 990 is an annual information return filed by certain tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to report the information required by Section 6033 to the IRS.
The Nonprofit Form 990 reports details about:
- Organization's exempt and other activities
- Financial activities, governance
- Compliance with certain federal tax filings and requirements
- Compensation paid to certain persons
Filing 990 for the first time?
ExpressTaxExempt, the IRS-authorized e-file provider, can provide you with the easiest way to file your Form 990.
2. Who must file IRS Form 990?
Organizations with gross receipts higher than or equal to $200,000 and total assets higher than or equal to $500,000 must file IRS Form 990.
Other Variants of Form 990:
For organizations whose gross receipts and assets don’t fall within the range mentioned above, and for organizations with a single primary source of the contribution, there are other variants of the 990 form available such as:
- Form 990-N - For organizations with gross receipts less than $50,000
- Form 990-EZ - For organizations with gross receipts less than $200,000 and total assets less than $ 500,000
- Form 990-PF - For Private foundations and non-exempt charitable trusts regardless of gross receipts
ExpressTaxExempt - the comprehensive e-file provider for 990 forms!
Not only Form 990 ExpressTaxExempt also supports all the variants of 990 forms, such as 990-EZ, 990-N, and 990-PF. Explore more
3.What’s New for the 2023 Tax Year?
Starting from the 2023 Tax Year, the IRS requires Section 501(c)(21) trusts to File Form 990 (or submit IRS Form 990-N, if eligible) instead of Form 990-BL to meet their annual filing requirements under section 6033.
Note: Some section 501(c)(21) trusts may also be required to file Form 6069, Return of Certain Excise Taxes on Mine Operators, Black Lung Trusts, and Other Persons Under Sections 4951, 4952, and 4953.
4. When is the deadline to file Nonprofit tax Form 990?
Nonprofits and exempt organizations must file the 990 by the 15th day of the 5th month after the end of the accounting period.
The organization that operates under a Calendar Tax Year (which means the tax year ends on December 31) must file Form 990 on or before May 15.
The organization that operates in the Fiscal Tax Year can find its Form 990 due date here: https://www.expresstaxexempt.com/form-990-due-date-finder/.
Never miss your 990 deadline!
When you get started with ExpressTaxExempt, we provide you with timely updates on IRS changes and deadline reminders to ensure the on-time filing of your
Form 990.
5. Breakdown of Form 990
Form 990 consists of 12 parts. They are:
- Part I - Summary (Activities & Governance, Revenue, Expenses, and
Net Assets) - Part II - Signature Block
- Part III - Statement of Program Service Accomplishments
- Part IV - Checklist of Required Schedules
- Part V - Statements Regarding Other IRS Filings and Tax Compliance
- Part VI - Governance, Management, and Disclosure
- Part VII - Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
- Part VIII - Statement of Revenue
- Part IX - Statement of Functional Expenses
- Part X - Balance Sheet
- Part XI - Reconciliation of Net Assets
- Part XII - Financial Statements and Reporting
Not sure how to complete Form 990?
Visit here to learn how to fill out the details on your Form 990 with our step-by-step 990 instructions.
6. Additional Requirements For Form 990
990 Schedules:
The organizations filing Form 990 may also be required to report additional information to the IRS by attaching 990 Schedules with their main form.
Totally there are 16 Schedules available for Form 990 that may need to be attached as per the organization's type, activities, and financial status. Here is the list of available Schedules:
- Schedule A - Public Charity Status and Public Support
- Schedule B - Schedule of Contributors
- Schedule C - Political Campaign and Lobbying Activities
- Schedule D - Supplemental Financial Statements
- Schedule E - Schools
- Schedule F - Statement of Activities Outside the United States
- Schedule G - Supplemental Information Regarding Fundraising or
Gaming Activities - Schedule H - Hospitals
- Schedule I - Grants and Other Assistance to Organizations, Governments, and Individuals in the U.S
- Schedule J - Compensation Information
- Schedule K - Supplemental Information on Tax-Exempt Bonds
- Schedule L - Transactions with Interested Persons
- Schedule M - Noncash Contributions
- Schedule N - Liquidation, Termination, Dissolution, or Significant Disposition of Assets
- Schedule O - Supplemental Information to Form 990
- Schedule R - Related Organizations and Unrelated Partnerships
Need Help Understanding the Schedules?
If you are looking for more details regarding each Schedule, Visit here: https://www.expresstaxexempt.com/form-990-schedules/.
Form 990-T:
The organizations that file Form 990, 990-EZ, or 990-PF and have a gross income of $1,000 or more from unrelated businesses for the tax year must
file Form 990-T. Learn More
We support e-filing of 990-T too!
If you are looking for more details regarding each Form 990-T, Visit here: https://www.expresstaxexempt.com/form-990-t/what-is-form-990-t/
7. Is there an extension for Form 990?
The organizations that need more time to file IRS Form 990 can file the extension Form 8868 and get an automatic 6-Month filing extension of their
990 filing deadline.
Want to extend your Form 990 deadline?
Apply for an extension quickly and avoid any penalties from the IRS by filing your Form 8868 with ExpressTaxExempt. Learn More
8. What are the penalties for late filing or incorrect filing of Nonprofit Form 990?
The IRS may impose penalties on organizations if they fail to file Form 990 within the deadline or if they fail to provide correct information on their form.
Unless the organization provides a proper reason for the delay, the IRS imposes a penalty for each day after the due date of the return until it is filed.
9. Automatic revocation of tax-exempt status
If the organizations that are required to file 990 forms fail to complete the filing for three consecutive years, the IRS will revoke their tax-exempt status automatically. This automatic revocation will be effective on their original filing due date of the third annual return. Learn More.
How to reinstate the tax-exempt status after revocation?
The organization whose tax-exempt status got revoked by the IRS can reinstate that status by following any of the below processes based on their applicability.
- Streamlined retroactive reinstatement process
- Retroactive reinstatement process (within 15 months)
- Retroactive reinstatement (after 15 months)
- Post-mark date reinstatement
10. How to file IRS Form 990?
As per the “TaxPayer Act of 2019”, the IRS mandates organizations to file Form 990 electronically to facilitate quicker processing of forms.
To complete the electronic filing of Form 990 securely and promptly, you can get started with ExpressTaxExempt, the IRS-authorized e-file provider!
Why can ExpressTaxExempt be your best choice for 990 Filing?
- Our Form-Based filing and Interview-Style filing methods can make your form preparation easier and quicker.
- You never have to worry about meeting the additional requirements while filing your 990 with us. Our system includes applicable Schedules automatically for Free.
-
To ensure that your 990 returns are error-free, we have an Internal Audit Check system that identifies and displays if there are any errors
in your form. - You can Add More Users to aid you in form preparation. Also, you can share the form with your organization's board members to review and approve the return.
- If you encounter any issues or have any queries, our Customer Support team is available via live chat, phone, and email to resolve them quickly.
Article Sources
- Return of Organization Exempt From Income Tax
- Instructions for Form 990 return of Organization Exempt From Income Tax
-
Where To File - Forms Beginning With The Number 9
https://www.irs.gov/filing/where-to-file-forms-beginning-with-the-number-9
