Gear Up Nonprofits! Your 990 Filing Season for 2024 is Here

As you’re aware, the 15th of this month marks the deadline for nonprofits to e-file 990 Series Forms. This period isn’t just about tax compliance; it’s also an opportunity to demonstrate transparency, accountability, and social responsibility.

In this blog, we’ll walk you through the essential aspects of Form 990 filing.

Tax Compliance for Nonprofits – An Overview

While nonprofits enjoy exemption from federal taxes, this status entails certain obligations, with annual filing being among the most significant. Form 990 is tailored for nonprofits and tax-exempt organizations to report their yearly information to the IRS. Unlike other forms, these filings are subject to public inspection, underscoring the reputation of such nonprofits within the community.

Select the Applicable 990 Form

Given the availability of five distinct types of 990 forms, it’s crucial for nonprofits to choose the one that aligns best with their organization’s profile. A thorough understanding of the criteria and nuances of each form is essential for meeting filing requirements. 

Below, we outline the requirements of each form that nonprofits need to be aware of.

Form 990-N (e-Postcard) – Designed for small non-profit organizations with annual gross receipts of $50,000 or less.

Form 990-EZ – Applicable for non-profits with gross receipts under $200,000 and assets less than $500,000. 

Form 990 – Applicable for organizations with gross receipts equal to or more than $200,000 (or) assets equal to or more than $500,000.

Form 990-PF – Organizations classified as private foundations must file Form 990-PF. 

Form 990-T – Organizations with $1,000 or more in Unrelated Business Income (UBI) are required to file this form.

990 Penalties and Extensions

Missing the deadline for filing Form 990 can incur penalties ranging from $20 to $120 per day, or potentially jeopardize your organization’s tax-exempt status if filing requirements are continuously missed for three years. However, if you require additional time, you can obtain an extension by filing Form 8868 with ExpressExtension, prolonging the 990 deadline by up to six months.

E-file Mandate for 990 Returns

The IRS mandates electronic filing for Form 990. Therefore, choosing the right e-file provider is important to ensure a seamless and error-free filing process.

Tax990, our sister product, offers a comprehensive solution tailored to the unique needs of nonprofits. With features such as,

• Direct-form entry and interview-style filing options for simplified preparation of forms. 
• The Internal Audit Check feature checks the form for correctness based on the IRS Business Rules, preventing common errors and spotting missing information. 
• All the 990 Schedules are included free of cost.
• If the return is rejected, clients can easily amend any errors and Retransmit it to the IRS for free 
• Using the Reviewers and Approvers feature, the organizations can share their 990 returns with the organization’s key officials and board members for approval.

The 2024 Form 990 filing season is upon us, understanding the requirements, selecting the right forms, and leveraging the right tools are essential, nonprofits can navigate this process effectively by using Tax990.