Preparing a Nonprofit Tax Return
Summer is almost here and so is the May 16th 990 series return deadline. IRS Form 990 is an annual information return that tax-exempt and nonprofit organizations must file each year with the IRS. Organizations are required to file Form 990 to report information regarding their mission, programs, and finances for the tax year. 990 forms serve as a way for organizations to uphold their tax-exempt status.
To help your organization prepare for the upcoming deadline and file your return quickly and easily, review this checklist to ensure you have all the necessary information to begin your return:
Which 990 form do you file?
An organization’s gross receipts, assets, and public charity status will determine which 990 series form they are required to file. However, this does not apply to organizations that need to file Form 990-PF. Private foundations will need to file Form 990-PF.
Form 990 is typically filed if an organization has gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000 at the end of their tax year.
Form 990-EZ is typically filed if an organization has gross receipts of greater than $50,000 but less than $200,000 and total assets at the end of the year less than $500,000.
Form 990-PF is typically filed by Exempt & Taxable Private Foundations as well as Non-Exempt Charitable Trusts which the IRS treats as private foundations.
Form 990-N(e-Postcard), is typically filed if an organization has gross receipts of $50,000 or less. Organizations can also voluntarily file Form 990 or 990-EZ instead of Form 990-N.
What is the due date to file 990 Series Returns?
Form 990 due dates depend on the tax calendar and organization follows. For fiscal tax year organizations, Form 990 must be filed by the 15th day of the 5th month after an organization’s accounting period ends. If an organization follows a calendar tax year, its deadline for the 2021 tax year is May 16, 2022.
What Information will I need to file my return?
When filing a 990 series return, you will need to provide a lot of information about your organization. Considering this, it is extremely helpful to have certain information and documents handy while filing your return.
IRS Determination Letter:
Your IRS determination letter will include important information regarding your organization’s accounting period end date, annual filing requirements, and tax-exempt status.
Identification Information:
When you begin filing your return, you will need to provide some basic information about your organization. This information will include your organization’s name, EIN, address, and fiscal or calendar tax year information. You will also need to include information regarding the programs your organization offers, officer information, and your group exemption number.
Financial Information
You will be asked to provide your organization’s financial information when you file a 990 series form. Be ready to report all your revenue, expenses, and assets. Filing a nonprofit 990 series return provides a statement of your organization’s financial position to the IRS and the public.
E-Filing your Return
The Taxpayer First Act, enacted on July 1, 2019, mandates tax-exempt organizations to electronically file their Form 990s.
ExpressTaxExempt is here to provide nonprofit and tax-exempt organizations with a streamlined e-filing experience. With ExpressTaxExempt, nonprofits and tax-exempt organizations can meet their Form 990 series deadlines quickly and easily. If you have a May 16th 990 series deadline, start e-filing your return today with ExpressTaxExempt!
