990s – Where do I start?
It’s almost that time of year for most nonprofits, 990s. Not sure where to start?
Read on to learn more about the basics to make sure you are CYA-ing.
WHEN DO I NEED TO FILE?
Registered nonprofits must file their annual tax returns by the 15th day of the 5th month after their fiscal year ends.
For most nonprofits, the fiscal year ends on December 31, so you would need to file by May 15th.
WHY DO I NEED TO FILE?
If you miss your deadline or fail to even file, major penalties can stack up.
Penalties can range from to a daily fine until it is filed to revocation of your tax exempt status.
WHAT DO I NEED TO FILE?
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Full 990 – The full 990 form is the full format of the 990 form it is the longest version of the form. You must complete this version if:
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For the year you are filing, your gross revenue greater is or equal to $200k
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OR you have an asset valuation of $500k or more even if your revenue falls into the 990-EZ range
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900-EZ – This abbreviated version of the full 990 is intended for smaller nonprofits. The criteria can get a bit complicated, but you must complete this version if:
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Your 3 year average gross revenue is greater than or equal to $50k but less than $200k
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Your most recent year is equal or greater to $200k for the year you are filing, you have to do the full 990.
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990-N – This form is the shortest of the forms. It is web based through the IRS website or approved 3rd party vendors and known as the “e-postcard”. This is intended for small or new nonprofits with less than $50,000 in gross revenue (3 year rolling average).
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990-PF – This form is exclusively for private foundations or for private operating foundations regardless of how much revenue you bring in.
The rule of thumb when dealing with the IRS, is that you should investigate some of the other exceptions and special rules, especially for speciality and/or supporting organizations.