During the Holiday season, IRS filing requirements may be the last thing on your mind, but filing Form 990 is a great way to celebrate your organization and the giving season. Charities do so much for their community, and Form 990 opens up their financial records to the public and lets donors see the positive impact of their gifts.
Is My Nonprofit a Charity?
Charitable organizations are nonprofits because they work for social wellbeing instead of income, but not all nonprofits are charities. While nonprofits are based on the fact that any funds they receive aren’t going towards making a profit, charities are also specifically devoted to philanthropy and the public good.
Charities serve a wide variety of educational, scientific, and service-based functions, all geared towards the welfare of the public. The category of public charity covers hospitals, schools, and a lot of other similar organizations. These nonprofits rely on donations and contributions from their communities and actively work to support other charitable organizations.
IRS Requirements for Charities
If the IRS approves your organization as a charity under section 501(c)(3) you’ll be tax-exempt but you will need to file some yearly forms. The Form 990 series allows nonprofit organizations to disclose their finances to the IRS and the public.
Not sure which 990 form your organization is required to file? IRS requirements for tax-exempt filing are based on your nonprofit’s gross receipts. Click here to find out which form to file.
Tax-exempt charitable organizations with gross receipts of $50,000 or less can meet their IRS requirements easily with a short form. By e-filing Form 99-N, the e-postcard of tax-exempt filing, they can skip the longer filing process necessary for Form 990 or Form 990-PF.
Click here for everything you need to know about e-filing Form 990-N.
Tax-exempt charitable organizations with gross receipts less than $200,000 and total assets less than $500,000 file Form 990-EZ. This form is a little more extensive than Form 990-N, but still much shorter than Form 990.
Visit these blogs for Part 1 and Part 2 instructions for Form 990-EZ.
If your tax-exempt charitable organization has gross receipts of $200,000 or more and total assets of $500,000 or more, you will need to file Form 990.
Organizations that are Private Foundations file Form 990-PF.
How to File Form 990 for Charities
The best way to meet all your charitable organization’s Form 990 requirements is by e-filing. ExpressTaxExempt makes it simple. With a choice of form-based and interview-style filing, you can customize your experience for maximum ease and efficiency.
Our software checks your returns for errors and discrepancies and helps you file correctly the first time. When the IRS accepts your return, instant notifications ensure that you’ll know immediately. To e-file Form 990, simply select your form, enter your information, correct any errors, and transmit your return directly to the IRS.