Form 990 - Everything the Nonprofits Should Know About
What is Form 990?
- Form 990 is an annual information return that tax-exempt organizations are required to file annually for reporting their revenue, expenses, activities, and certain other information to the IRS.
- The IRS uses the information reported on Form 990 to ensure that the organizations aren’t misusing their tax-exempt status.
Who Must File Form 990?
Generally, Form 990 is filed by the following organizations if their gross receipts are greater than or equal to $200,000 (or) assets greater than or equal to $500,000.
- Tax-exempt organizations
- Section 4947(a)(1) nonexempt charitable trusts
- Section 527 Political organizations
What are the other variants of Form 990?
Apart from Form 990, there are different variants of 990 forms available.
- The organizations which have gross receipts value of less than or equal to $50,000, then they are eligible to file Form 990-N.
- The organizations which have gross receipts less than $200,000 and assets less than $500,000, then they are eligible to file form 990-EZ.
- The organizations that are categorized as Private Foundations should file form 990-PF.
- The organizations that file Form 990, 990-EZ 0r 990-PF and generate unrelated business income of $1000 or more must file form 990-T
When is the Deadline to file Form 990?
Form 990 is due by the 15th day of the 5th month following the end of the organization’s accounting period.
If an organization follows a calendar tax year, the deadline to file Form 990 is May 15th.
Following a Fiscal tax year? Find out your organization’s 990 deadline.
What are the Penalties for filing Form 990 late?
If an organization fails to file Form 990 before the deadline, the IRS will impose a penalty.
- For Small Organizations (gross receipts < $1,129,000) - $20/ each delayed day with the maximum penalty of $11,000 or 5% of gross receipts.
- For Large Organizations (gross receipts > $1,129,000) - $110/ each delayed day with the maximum penalty of $56,000 or 5% of gross receipts.
Learn more about 990 penalties.
Is there an extension available for Form 990?
Yes, the organizations that need more time to file their 990 return can file Form 8868 and get an automatic extension of up to 6 months from the IRS.
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