Should I File 990-EZ or 990-N? Form 990 Overview

All you need to know is that form 990-N means your company makes less than a certain amount in revenue, and thus there’s less for you to fill out versus the other versions of the form. How do I know which 990 to file? An organization that normally has $50,000 or more in gross receipts and that is required to file an exempt organization information return must file either Form 990PDF, Return of Organization Exempt from Income Tax, or Form 990-EZPDF, Short Form Return of Organization Exempt from Income Tax.

The days of spending countless hours completing a Form 990 by hand are fading fast. E-filing IRS Form 990 is very simple; it can be completed in five steps or less. Before you begin e-filing for your organization, it is important to understand which version of the IRS Form 990 Series you are required to file. There are four variations of IRS Form 990 included in the Form 990 Series. Each form provides information on specific types of exempt organizations. Select the appropriate 990 Form based on the following credentials: Form 990-N (e-Postcard): Filed by tax-exempt organizations with gross receipts less than or equal to $50,000. Form 990-EZ: Filed by tax-exempt organizations with gross receipts that come to less than $200,000 and $500,000 in total assets.

Form 990-N Filing Criteria

Who should file 990-N? Nonprofits who make less than $50,000 in gross receipts in a tax year are eligible to file the 990-N form. This should be the total amount of revenue without taking into account any expenditures. Organizations that are less than a year old could receive up to $75,000 and still be eligible to file, while organizations that are between one and three years old can average $60,000 or less and still file.

If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. Depending on the size and the nature of their assets and their annual receipts, the non-profits should file any type of Form 990, such as 990 EZ, 990- N, or 990- PF, which is meant for private organizations. Organizations that are not eligible to file Form 990-N. The organizations that are not eligible to file Form 990-N are as follows. They are expected to file a different format of Form 990, as per the instructions of the IRS.

Penalties and Exemptions

If an organization fails to file a required Form 990 by the due date (including any extensions), it must pay a penalty of $20 per day for each day the return is late. The penalty generally may not exceed the lesser of $10,000 or 5% of the organization’s gross receipts. Nonprofits use Form 990 to prove their tax-exempt status. Who Should File a Form 990? All of the organizations who will file a form 990 are tax exempt, but not all tax exempt organizations have to file the form.

Filing Form 990-EZ

Who should file Form 990-EZ? Form 990-EZ is for tax-exempt organizations with annual gross receipts between $50,000 and $200,000.

Where to find an organization’s 990? The IRS requires nonprofits to make their last three 990s public. Also their 1023 filed for tax exemption.

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