What is Form 990?
- Form 990 is an annual information return that tax-exempt organizations must file each year to report their financial details, activities and certain other information required by the IRS.
- By using the information reported on Form 990, the IRS makes sure that the organization isn’t abusing their tax-exempt status.
Who Must File Form 990?
In general, organizations that have gross receipts value of less than or equal to $200,000 (or) assets less than or equal to $500,000 should file Form 990. This includes,
- Tax-exempt organizations
- Section 4947(a)(1) nonexempt charitable trusts
- Section 527 Political organizations
What are the other variants of Form 990?
Not just Form 990, there are different variants of 990 forms available.
- Form 990-N - Intended for organizations with gross receipts ≤ $50,000.
- Form 990-EZ - Intended for organizations with gross receipts < $200,000 and assets < $500,000.
- Form 990-PF - Intended for organizations treated as Private Foundations
- Form 990-T - Intended for organizations with income of $1,000 or more from unrelated businesses.
When is the Form 990 Due Date?
Generally, the organization should file their Form 990 by the 15th day of the 5th month after the end of the organization's accounting period.
Note: If your organization follows a calendar tax year, the due date for filing Form 990 is May 15th.
Following a fiscal tax year? Find out your organization's 990 deadline.
What happens if an Organization fails to Form 990?
- If an organization that was supposed to file Form 990 fails to do so, the IRS will impose a penalty. Form 990 penalties may vary depending on the organization’s gross receipts.
- For organizations with gross receipts < $1,129,000, the penalty amount is $20 per each delayed day with the maximum penalty of $11,000 or 5% of gross receipts.
- For organizations with gross receipts > $1,129,000, the penalty amount is $110 per each delayed day, with the maximum penalty of $56,000 or 5% of gross receipts.
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Furthermore, if an organization fails to file Form 990 for three consecutive years, the IRS may even revoke the tax-exempt
status of the organization.
Is there an Extension for Form 990 Deadline?
Yes, the organizations that need more time to file their 990 returns can file Form 8868 and get an extension of up to 6 months from the IRS. There is no need to provide any reason for requesting more time as this extension is automatic.
Tax990 will Simplify your Form 990 Filing with Exclusive Features!
Being an IRS-authorized e-file provider, Tax990 supports the e-filing of all the 990 forms, such as Form 990, 990-EZ, 990-PF, 990-N, and 990-T.
Tax 990 is SOC-2 certified and makes sure that your organization’s sensitive data is completely protected. Here are some of the amazing features offered by Tax990 to ease your filing experience.
- Form-based and Interview style filing options
- Ensures the accuracy of your returns with internal audit check
- Enables you to invite users for managing the filing or review and approval
- Provides seamless customer support via live chat, phone, and email
