How to Complete Part II of IRS Form 990-EZ
As your organization gets ready for the holidays, it’s time to think about IRS filing requirements. In addition to sending out season’s greetings, nonprofits need to open up their financial records to the public. Here’s what you need to know about the balance sheet portion of Form 990-EZ.
About Form 990-EZ
IRS Form 990-EZ is a shorter form in the 990 series that allows smaller nonprofits to report their financial information to the IRS and the public. Nonprofits with gross receipts under $200,000 and total assets less than $500,000 can choose to file Form 990-EZ for a less exhaustive filing experience.
Form 990-EZ has to be filed every year. Your organization’s Form 990-EZ filing deadline is the 15th day of the 5th month following the end of your tax year.
Form 990-EZ Part II
Even though Form 990-EZ is only two pages, there are a few different parts to work through. Part II is a balance sheet that is used to provide a statement of financial position by calculating your organization’s net assets or fund balances. Transparency about your nonprofit’s resources and the ways you are using them builds up trust with your donors and allows your organization to remain tax-exempt.
Click here for instruction on completing Part I of IRS Form 990-EZ.
How to File Form 990-EZ Part II
For this section, you’ll want to have your budget handy and all your financial information prepared. Here is what you’ll need to provide on each line to complete Form 990-EZ Part II:
Line 22: Enter all your organizations’ non-interest-bearing accounts, cash funds, checking accounts, saving accounts, money market funds, commercial papers, U.S. Treasury bills, and certificates of deposits.
Line 23: Report the value of any land or buildings that your organization owns.
Line 24: Report the total of any other assets, such as accounts receivable, prepaid expenses, or inventories.
Line 25: Add together all your assets and enter your total assets on this line. It’s really important to remember that if your total assets are more than $500,000, your organization will no longer qualify for Form 990-EZ and need to file Form 990.
Line 26: Enter your total liabilities. Liabilities are any money your organization will need to pay in the future, such as accounts payable, grants payable, mortgages and loans, or deferred revenue.
Line 27: To calculate your organization’s net assets or fund balances, subtract your total liabilities from your total assets and report that number on this line.
E-file Form 990-EZ
Form 990-EZ may be a short form but it requires a lot of sensitive financial information about your organization that needs to be reported carefully and handled safely. E-filing is a great way to streamline your filing process.
When you e-file Form 990-EZ with ExpressTaxExempt, you get maximum security. Our software is all about privacy and accuracy for nonprofits. A built-in error check catches last-minute mistakes and scans your forms for typos and discrepancies.
Visit these blogs to learn more about avoiding IRS penalties and requesting an extension on your Form 990 deadline.
We know filing Form 990-EZ isn’t always easy, so our live, 100% U.S.-based support team is available by phone and email to answer any questions. When it’s time to meet your Form 990 deadline, we’re here to help.
