IRS 990 Tax Forms: Which one does your tax exempt nonprofit need to file?

All nonprofits registered as tax-exempt with the federal government must file an annual report with the IRS every year. No matter what income, asset, or activity level, your organization is required to file to maintain your active status as a 501C3 public charity or foundation.  These forms may look very scary but are relatively straightforward if you have the right information available to you. You will need detailed information about your financials so access to full bank records is key. Of course, maintaining clean records throughout the year will make filling out the tax forms a breeze.

To fill out an IRS 990 form, you will need to have an EIN, basic organizational information, financial documents and records, information about the organization’s board of directors and officers, and revenue and expenditure information. Depending on the organization’s type, you may need to provide additional information or documents.


The Five Main Types of Tax Exempt IRS 990 Forms

The IRS 990 is an annual report that tax-exempt organizations must file with the Internal Revenue Service (IRS). It provides information about the organization's mission, programs, finances, and activities. There are five main types of 990 filings, and each one has a different purpose and filing requirement.

1. Form 990-EZ. Form 990-EZ is for organizations with gross receipts of $200,000 or less in the tax year, total assets of $500,000 or less at the end of the tax year, and are not a private foundation. This form is due by the 15th day of the 5th month after the close of the organization's tax year.
2. Form 990. Form 990 is for organizations with gross receipts of more than $200,000 or total assets of more than $500,000 at the end of the tax year. It is due by the 15th day of the 5th month after the close of the organization's tax year.
3. Form 990-PF. Form 990-PF is for organizations that are classified as private foundations for federal tax purposes. It is due by the 15th day of the 5th month after the close of the organization's tax year. No matter your income or asset level, you must complete this special form if your organization is a public foundation.
4. Form 990-N (also known as the e-Postcard). Form 990-N (e-postcard) is for organizations that have gross receipts of $50,000 or less in the tax year. It is due by the 15th day of the 5th month after the close of the organization's tax year. This form should take about two minutes to complete and it is simply a way for you to check in with the IRS to let them know you are still operating. If you have receipts $50,000 or less, you may choose to file Form 990EZ but it is not required. Filing 990EZ would be a good idea if you are interested in applying for grants or plan to do work with foundations who may require full disclosure of your annual income information.
5. Form 990-T.  Form 990-T is required for any organization that has income from an unrelated business (UBI). This form is used to determine whether the organization owes any taxes on the income from business unrelated to their core public service mission. Some nonprofits have unrelated income from real estate, investments, social enterprises, and sales of goods or services, among other activities.

Each form is slightly different and provides different information. Form 990-EZ is the simplest form and is used to provide basic information about the organization. Form 990 provides more detailed information about the organization's finances, activities, and governance. The Form 990-PF is more detailed and focuses on the private foundation's activities, investments, and charitable giving. Form 990-N is the simplest form and provides basic information about the organization. Form 990-T is solely for tax exempt organizations that have unrelated business income that may be open to tax liabilities.

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Option for a Six-Month Extension to File

There is a sixth form you ought to be aware of is Form 8868 "Application for Extension of Time to File and Exempt Organization Return." If the filing deadline is coming up quickly and you do not have all of your financial and organization information ready to submit your annual report tax form, then file an extension. Completing Form 8868 will put in a request to give you permission for a 6-month extension to complete your forms. 


What happens if you do not file your IRS 990 form?
Failing to file your IRS 990 form can have serious consequences. The IRS requires organizations to submit a 990 form to remain in compliance with federal tax law. If an organization does not file a 990 form, the IRS may impose penalties and fines. These penalties can range from a small fine to the revocation of the organization’s tax-exempt status.
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In addition to penalties from the IRS, not filing a 990 form can also lead to a decrease in donations and grants from donors. Donors and grantmakers often use the 990 form to assess the legitimacy of an organization's work and its financial stability. Without the 990 form, the organization is not likely to receive donations or grants.



Blackbird Philanthropy Advisors is happy to share general information related to nonprofit tax forms, however, we are not accountants. The best way to determine how to complete these forms is by contacting a tax professional who specializes in nonprofit accounting and finance. Contact us and we would be happy to provide a referral to a trustworthy CPA who can help you.