Tax-exempt organizations must file the Form 990-EZ annually with the IRS to maintain their tax-exempt status. This is used to report an organization’s revenue, expenses, assets, liabilities, accomplishments, and officer/employee details.
This Form is due to the IRS on the 15th day of the 5th month after the close of an organization’s accounting year. For calendar year filers the actual due date is May 15, 2020. (Due to COVID 19 pandemic, IRS extends the deadline to July 15, 2020)
The IRS Form 990-EZ is considered the “short” form, but there is still a lot of information that filers must include. Here is some helpful information to get you started on your Form 990-EZ.
What Basic Information Is Required For the Form 990-EZ?
Before you begin filing, there is some basic information that you will need to have on hand to begin the process.
Your organization’s name, address, and phone number
Your group exemption number, if you are part of a group.
What Is Required In Each Section of the Form 990-EZ?
In total there are 6 parts of Form 990-EZ.
Part I- Revenue, Expenses, and Changes in Net Assets or Fund Balances
This section is all about your organization’s expenses, where the revenue came from (donations, grants, etc), and how you used these contributions.
There are 20 lines in this section, where you will record this information.
Part II- The Balance Sheet
This section compares your liabilities and assets between the beginning of the tax year and the year-end. This section consists of lines 22-26 and the Schedule O should be attached.
Part III- Statement of Program Service Accomplishments
This part of the Form 990-EZ describes the top 3 accomplishments that your organization has made throughout the year. You will also need to attach the total cost that went into each accomplishment.
Part IV- List of Officers, Trustees, and Key Employees
This portion of the form is dedicated to the individuals that are involved in the governance of your organization, you should list them all whether or not they receive compensation.
If they do receive compensation, be sure to list their salaries and benefits information.
Part V- Other Information
This section of the form contains lines 33-45. These are a series of “yes” or “no” questions that will give the IRS specific information about your organization. Some organizations will be required to attach additional Schedules here.
Part VI- Section 501(c)3 Organizations Only
If you are not classified as a 501(c)3 organization, you can simply keep on trucking past this portion of the form.
If you are a 501(c)3 this is where you will include information on your highest compensated employees and independent contractors.
Lastly, the appropriate official such as the executive director will need to sign the form. Don’t worry, the Form 990-EZ can be e-signed for organizations that prefer to file electronically.
There are 8 Schedules that are associated with the Form 990-EZ. Be sure that you attach all of the schedules that apply to your organization. The IRS will not consider your application to be correct and complete
Schedule A- Public Charity Status and Public Support
Schedule B- Schedule of Contributors
Schedule C- Political Campaign and Lobbying Activities
Schedule E- Schools
Schedule G-Supplemental Information
Schedule L- Transactions with Interested Persons
Schedule N- Liquidation, Termination, Dissolution, or Significant Disposition of Assets