What is Form 990? A Non-profit Guide

As a non-profit organization, staying compliant with tax regulations is crucial. One of the most important tax documents you’ll need to file is the Form 990. In this guide, we’ll explore what Form 990 is, the different types available, why it’s important, the deadline for filing, and how to e-file.

What is Form 990?

Form 990 is an annual information return that most tax-exempt organizations are required to file with the Internal Revenue Service (IRS). This form provides the IRS with information about the organization’s activities, governance, revenue, and expenses for the year.

The primary purpose of Form 990 is to ensure transparency and accountability for non-profit organizations. It allows the IRS and the public to review the organization’s operations and financial health.

Types of 990 Forms for Nonprofits

There are several versions of Form 990, each designed for organizations of different sizes and types:

• Form 990-N (e-Postcard): This is the simplest form and is intended for small organizations with gross receipts of $50,000 or less.
• Form 990-EZ: This form is for organizations with gross receipts below $200,000 and total assets below $500,000.
• Form 990: This is the long form and is required for organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more.
• Form 990-PF: This form is specifically for private foundations.

Why Is a 990 Form Important?

Filing Form 990 is crucial for non-profit organizations for several reasons:

• Maintaining Tax-Exempt Status: Failure to file Form 990 can result in the loss of an organization’s tax-exempt status.
• Public Transparency: Form 990 provides the public with information about the organization’s mission, activities, and financial health.
• Donor Confidence: Donors often review Form 990 before making contributions to ensure their funds are being used responsibly.
• Legal Compliance: Filing Form 990 is a legal requirement for most tax-exempt organizations.

990 Form Deadline

The deadline for filing Form 990 varies depending on the organization’s fiscal year:

• For organizations with a calendar year (January 1 to December 31), the deadline is May 15th of the following year.
• For organizations with a fiscal year different from the calendar year, the deadline is the 15th day of the 5th month after the end of the fiscal year.

How to E-File?

Many non-profit organizations choose TaxZerone for e-filing their Form 990 due to its convenience and efficiency.

To utilize TaxZerone’s e-filing service, organizations simply need to create an account and follow the prompts to submit their Form 990, along with any necessary attachments.

E-filing through TaxZerone streamlines the process and minimizes the risk of errors.

By leveraging TaxZerone’s services and understanding the importance of Form 990 and its filing requirements, non-profit organizations can maintain compliance and transparency with the IRS and the public, ensuring smooth operations and peace of mind.