All about IRS 990 Forms

Each tax deadline has their own laws and regulations, and on top of that, each form due has different variations. It can be a little difficult to keep up with all of the different rules! However, because the Tax Exempt Organization Return deadline is approaching on May 15th then it’s a good time to read up on which form you need to file.

Return of Organization Exempt From Income Tax

Organizations exempt from federal income taxes generally consist of nonprofit organizations like charities, educational groups, religious organizations, groups against animal cruelty, and more. Every year they’re expected to file IRS Form 990, the Return of Organization Exempt From Income Tax Form.

Form 990 is to be taken pretty seriously as it’s used by the IRS to make sure that nonprofit organizations aren’t abusing their tax-exempt status. The form also provides the public with financial information about the organization.

Step one is realizing that you need to file a Form 990 and step two is figuring out which 990 to file, so let’s take a peek at the varying 990 Forms:

Form 990-EZ or the Short Form Return of Organization Exempt from Income Tax can be used by organizations with total assets that are less than $500k with total gross receipts less than $200k.

Form 990-N or the e-Postcard is the Electronic Notice for Tax-Exempt Organizations that are not required to file Form 990 or Form 990EX because they are smaller organizations with gross receipts that are $50k or less on an annual basis.

Form 990-PF or the Return of Private Foundation is for U.S. private foundations to file to list the fiscal date of the organization, including the list of grants received at the end of the fiscal year.

Your Form 990 is due on 15th day of the 5 months after your fiscal year. This means that the due date generally lands on May 15th, which is soon, so we hope you’re prepared to file.

If not you could face some penalties! The IRS will give you a penalty of $20 per day every single day that your return is late. The minimum on that fee is $1,000 or 5% of your gross receipts for the year. IF your gross receipts are over $1 million then the penalty is $100 per day with a minimum fee of $50k. Failure to provide to the public with your financial information will also result in a penalty of $20 per day.

However, if you aren’t ready to file, don’t sweat it. We have your solution. Head to ExpressExtension to e-file Extension Form 8868, which is the Exempt Organization Tax Extension Form.

By simply following ExpressExtenion’s step-by-step guide to e-file Form 8868 by the May 15th deadline you will receive an automatic extension of 6-months to file. Because the form is automatic, you don’t need to provide the IRS with a valid reason for needing an extension.

The process only takes a few minutes, then you’ll receive your extension in a matter of minutes. You will be notified via email the second that your extension has been approved. It’s really that easy!

Got Any Questions?

Well then ask us! The dedicated support team here at ExpressExtension is standing by to help. Give us a call Monday – Friday from 9 AM to 6 PM EST at 803.514.5155, contact us via live chat, or send us an email at [email protected].

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