How to Fill Out your 2021
- Updated April 23, 2021 - 8.00 AM
- Admin, ExpressTaxExempt
Form 990-EZ: A Line by Line Instruction
Nonprofits and Tax Exempt Organizations must report to the IRS their revenue, expenses, Assets, liabilities, program service accomplishments, Organizations officer details. The information is to be reported through Form 990-EZ.
Organizations must report Form 990-EZ before the 15th day of 5th month after the accounting
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IRS requires all Nonprofits and Tax-Exempt Organizations to make their Form 990-EZ annual return and all related supporting documents available to the public.
Table of Contents
1. Who must File IRS Form 990-EZ?
Tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations file Form 990-EZ (also named as Short Form) with the IRS to provide the information required by section 6033.
2. When is the deadline to file Form 990-EZ?
3. Instructions on How to Fill Out Form 990-EZ?
These instructions will help you with completing the filing process of Form 990-EZ.
Basic Information about your Organization
Before proceeding further in filling out revenue and other details, IRS requires you to complete a few basic information about your organization
- The Organization name, EIN, address, and telephone number.
- Check the required field on box B if any Address change, Name change, Initial return (if the organization filing a Form 990-EZ for a first time), final return/terminated, Amended return, Application pending.
- Enter the four-digit group exemption number on box F if the organization is included in a group exemption.
- Select your Organization’s accounting method on Box 6. (The organization must use the same accounting method throughout the Form 990-EZ and schedules, whether cash, accrual, or any other)
- Enter your website on Box.I
- Check your appropriate section on Box.K to show your organization tax exempt status. (Check any one of the appropriate sections 501(c)(3), 501(c) (other than 501(c)(3), 4947(a)(1) or 527)
- To determine the gross receipts of your Organization use Box.L for finding your eligibility to file 990-EZ. (Only those organizations with gross receipts of less than $200,000 and total assets of less than $500,000 at the end of the tax year can use Form 990-EZ)
Instructions to complete Form 990-EZ Part 1 - Revenue, Expenses, and Changes in Net Assets or Fund Balances
Line 1-12 is all about the Revenue for the tax year.
Enter the values of
- contributions, Gifts, Grants
- Program service revenue including laboratory fees, and related charges for services, medical fees, tuition received by a school, royalties
- Investment income
- All sales of securities and sales of all other types of investments, capital gains dividends
- Report gross income from gaming, and fundraising events (Organizations must attach Schedule G if they receive more than $15,000 Gross income from gaming and fundraising events)
- Report the gross sale of goods.
- Enter other incomes such as interest from loans to officers, directors, trustees, key employees, and other employees. (Other revenues should describe in Schedule O)
Add all these values to calculate the revenue of the organization for the tax year.
Line 10-17 is all about the Expenses for the tax year.
Line 10 - 17 is all about Operating and Administrative Expenses for the tax year.
Enter the values of actual grants and similar amounts paid to individuals and organizations, Benefits offered value, salary, Professional fees, payment made to independent contractors, Occupancy, rent, utilities, maintenance, Printing, publications, postage, shipping, and other expenses.
Organizations should attach schedule O for describing other expenses in Schedule O.
Add all these values you paid to calculate the expenses of the organization for the tax year.
Line 18-20 is all about the Net Assets of the Organizations for the tax year.
- Enter the difference between the total revenue and expenses for the tax year to calculate the excess or (deficit) for the year on Line 18.
- Enter the Net assets or fund balances at the beginning of year on Line 19.
- Enter the value on Line 20, which is explained in Schedule O any changes in net assets or fund balances such as any unrealized gains and losses between the beginning and end of the tax year.
Combine these values to find the Net assets or fund balances at end of year.
Instructions to complete Form 990-EZ Part II - Balance Sheet
Every Nonprofits & Tax Exempt organization that files Form 990-EZ must complete Part II of the return.
Failing to complete the part II of Form 990-EZ might result in penalties.
The part is used to calculate the Net assets or fund balances of Organizations.
- Enter the interest, non-interest bearing accounts cash funds, checking accounts, savings accounts, money market funds, commercial paper, certificates of deposit, U.S. Treasury on Line 22.
- Add the book value of Organizations’ owned Lands and Buildings on Line 23.
- Enter the total of other assets such as accounts receivable, inventories, prepaid expenses on Line 24.
- Enter the total assets and total liabilities of the Organization to calculate the Net assets or fund balances.
Organization should attach Schedule O to describe the total liabilities and other assets.
All the value should be entered for the beginning of the year and end of the year.
Instructions to complete Form 990-EZ Part III - Statement of Program Service Accomplishments
Nonprofits and Tax Exempt Organizations should describe the program service accomplishments (such as adoptions, recreation for the elderly, rehabilitation, or publication of journals or newsletters) for each of their three largest program services.
Enter the top three program service accomplishments along with the total amounts spent (expenses).
Describe the program service accomplishment in Schedule O.
Instructions to complete Form 990-EZ Part IV - List of Officers, Directors, Trustees, and Key Employees
This part is all about the officers details.
Enter the officers, directors, and key employees of your Organization's average working hours per week, amounts reported on W-2 and 1099-NEC (for director services and other independent contractor services to the organization), Health benefits, contributions to employee benefit plans, and other compensation.
Instructions to complete Form 990-EZ Part V - Other Information
Line 33 to 45 is all about a mix up of “Yes or No” questions and for requesting the values about your Organization.
Check the “Yes” or “No” for the following questions.
- Organization engage in any significant activity not previously reported to the IRS
- Significant changes made to the organizing or governing documents
- If the organization have unrelated business gross income of $1,000 or more during the year from business activities
- Did the organization file Form 1120-POL for the tax year?
- Did the organization engage, directly or indirectly, in political campaign activities
Still, there are more “Yes” or “No” questions in completing this part.
Also enter the values of spending amount for
- political expenditures,
- Any loans spend to or borrow any amount from the any officer, director, trustee, or key employee (If yes, Organization must attach Schedule L),
- Section 501(c)(7) organizations must enter Initiation fees and capital contributions and Gross receipts, included on line 9 (Total Revenue)
- Section 501(c)(3) organizations should enter the amount of tax imposed on the organization during the year under section 4911, section 4912, and section 4955.
Still, there are more values to be entered on this part. Click here to find all the
Some organizations must require to attach the schedule A, C, O, L, N as per the answers on line 33 to 45.
Instructions to complete Form 990-EZ Part VI - Section 501(c)(3) Organizations Only
- All section 501(c)(3) organizations ((including, for purposes of Form 990-EZ, section 4947(a)(1) nonexempt charitable trusts)) must complete this part to provide the information about Lobbying Activities.
- School should check the box on 48 if described in section 170(b)(1)(A)(ii), . Also if you described under this section, you must attach schedule E.
- Add the information about highest compensated employees and independent contractors (who each received more than $100,000 of compensation from the organization) other than officers, directors, trustees, and key employees.
- Conform whether the organization attaches the Schedule A.
4. Instructions about Form 990-EZ Schedules
Nonprofits and Tax Exempt Organizations must provide additional information when filing Form 990-EZ through the various Schedules.
There are 8 Schedules are available for Form 990-EZ to provide more information about the Organization.
Missing to attach the required schedules may result in incorrect filing. It may lead to IRS penalties.
- Schedule A - Public Charity Status and Public Support
- Schedule B - Schedule of Contributors
- Schedule C - Political Campaign and Lobbying Activities
- Schedule E - Schools
- Schedule G - Supplemental Information
- Schedule L - Transactions with Interested Persons
- Schedule N - Liquidation, Termination, Dissolution, or Significant Disposition of Assets
- Schedule O - Supplemental Information to Form 990
Click here to learn more about the 990-EZ Schedules.
5. How to File 990-EZ electronically?
The Taxpayer First Act, enacted July 1, 2019, requires tax-exempt organizations to file all the 990 and related forms electronically. i.e., organizations tax year beginning on or after July 2, 2019, must file their 990 returns electronically.
To File Form 990-EZ electronically, get started with an IRS authorized provider like ExpressTaxExempt. Then follow our step by step instructions to complete Form 990-EZ.
Step 1: Add Organization Details
- Add your organization's name, EIN, address, and primary officer details. And then choose the Form 990-EZ to e-file.
Step 2: Complete Form 990-EZ Details
- Start entering the questions about your organization's revenue, expenses, and other required information in Form 990-EZ
Step 3: Review your Form information
- After completing all the required information, review all your Organization information to proceed further.
Step 4: Pay and transmit directly to the IRS
- Once you review all the information, you can transmit the Form 990-EZ to the IRS.