What Nonprofits and Tax Exempt Organizations need to know about Form 990-EZ?- Updated April 29, 2020 - 8.00 AM - Admin, ExpressTaxExempt
Form 990-EZ reports information about the tax exempt organization's revenue and expenses, activities, names of trustees and officers, board members, compensation details, details of donors.
Nonprofits and Tax-Exempt Organizations must make the Form 990-EZ return available to the public.
The following are the topics that are covered to provide clear information about the Form 990-EZ, deadline, and other related information.
Why E-file Form 990-EZ with ExpressTaxExempt?
- Secure & Accurate Filing
- Auto-generate 990-EZ schedules
- E-file your Amended Return
- Retransmit Rejected Return for Free
- Supports Extension Form 8868
- Copy Data from Prior returns
Table of Content
1. What is the IRS Form 990-EZ?
Form 990-EZ (also named as “short form”) is an annual information return to be filed by the Nonprofits and Tax-Exempt organizations to provide the information required by section 6033.
2. Who must file Form 990-EZ?
Small tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations with gross receipts less than $200,000 and total assets less than $500,000 must file a Form 990-EZ return.
3. When is the deadline to file 990-EZ?
Nonprofits & Tax-Exempt organizations must file the 990-EZ by the 15th day of the 5th month after the end of their tax year.
If your organization operates under a Calendar Tax Year (which means the tax year ends on December 31), you must file Form 990-EZ on or before May 15, 2020.
In response to the COVID-19 Pandemic, Form 990 series tax filing deadline extended by the IRS to 15th July 2020 for the exempt organizations whose deadline falls between 01 Apr 2020 and
14th July 2020.
Operating on Fiscal Tax Year? Find your Form 990-EZ due date here.
4. How to File Form 990-EZ?
For tax years beginning after July 1, 2019, the IRS mandates the electronic filing of Form 990-EZ.
For the tax year beginning prior to July 1, 2019, Form 990-EZ can be filed either electronically or by paper with the IRS.
However, the IRS encourages organizations to file electronically. By E-filing, the IRS can process your returns quicker, and also you get to know the status of your submission instantly.
Choose an Electronic filing method for quick, secure, and more accurate filing. E-file Now
Anyway, If you choose to file Form 990-EZ by paper, download the Form 990-EZ, fill in the necessary details and then send it to the IRS by the address mentioned here.
5. What are the Components of Form 990-EZ?
The following are the sections to be filed in Form 990-EZ:
- Revenue, Expenses, and Changes in Net Assets or Fund Balances
- Balance Sheets
- Statement of Program Service Accomplishments
- List of Officers, Directors, Trustees, and Key Employees
- Other Information
- Section 501(c)(3) Organizations
6. Any additional requirements in filing the 990-EZ?
Nonprofits and Tax-Exempt Organizations must provide additional information through the various Schedules.
Missing to attach the required schedules may result in incorrect filing leading to IRS penalties.
There are 8 Schedules in total available for Form 990-EZ that may need to be attached based on particular organizational activities.
- 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
Visit https://www.expresstaxexempt.com/form-990-ez/form-990-ez-instructions/ for line by line instructions to complete Form 990-EZ.
7. How to file an extension for Form 990-EZ?
Nonprofits and Tax-Exempt Organizations can extend the 990-EZ filing deadline by filing the extension Form 8868 for an automatic 6-Month filing extension.
The IRS requires no explanation to file tax extension Form 8868 and is sure to request for extension will be approved.
8. What is the penalty for late filing Form 990-EZ?
Nonprofits and Tax-Exempt Organizations must pay the penalty if not providing a valuable reason for late filing. The penalty applies from the next day after the due date that the return isn’t filed.
The penalty would be $20 a day, not to exceed the lesser of $10,500 or 5% of the gross receipts of the organization for the year.
Nonprofits and Tax-Exempt Organizations with annual gross receipts exceeding $1,067,000 are subject to a penalty of $105 for each day failure continues (with a maximum penalty for any one return of $53,000).The penalty applies on each day after the due date that the return isn't filed.
If it is mandatory, organizations will be fined for not filing electronically.
However, an organization must file Form 990 electronically instead of Form 990-EZ, if it meets the following conditions:
- Files at least 250 forms of any type during the tax year, and
- Has total assets of $10 million or more at the end of the tax year