The Nonprofit’s Guide to Form 990-EZ for the May 17 Deadline!

Form 990-EZ

Form 990-EZ filers, it’s time to get prepared for the May 17, 2021 deadline. As smaller nonprofits get ready to meet their annual IRS requirements, there are some important things to review for the 2020 tax year. 

Here is what you need to know about IRS requirements for Form 990-EZ, penalties, and how to meet your deadline easily.

What is Form 990-EZ?

Form 990-EZ is a 990 series form that allows smaller nonprofits to report their annual information to the IRS and the public. Small nonprofits can meet their 990 deadlines without filing Form 990, which is 12 pages and much more intensive. 

Nonprofits use Form 990-EZ to report their financial details, governing officers, activities, and more.

Who needs to file Form 990-EZ?

Nonprofits whose gross receipts are less than $200,000 and total assets are less than $500,000 can use Form 990-EZ to meet their IRS requirements.

Tax-exempt organizations are required to file Form 990-EZ, or another 990 series form, every year. 990 series forms help preserve transparency in the nonprofit sector and give the IRS and the public a report on nonprofits’ financial position and activities. 

Some organizations are required to file Schedules along with Form 990-EZ. Click here to find out more about Form 990-EZ Schedules.

When is the Form 990-EZ deadline?

Form 990-EZ is due on the 15th day of the 5th month after an organization’s tax period ends. When this date falls on a weekend or holiday, the IRS pushes the deadline to the next business day. 

For nonprofits operating on a calendar year, the Form 990-EZ deadline is May 17, 2021.

Form 990-EZ Penalties

Small nonprofits can be penalized by the IRS for missing the Form 990-EZ deadline or for filing late. The amount your organization could owe depends on how long it takes you to provide the correct information to the IRS.

Small organizations are fined $20 a day every day their form is late. The maximum penalty is $10,500 and cannot exceed 5% of the organization’s gross receipts for the tax year. Larger nonprofits, defined as organizations with gross receipts exceeding $1,067,000 can be penalized $105 a day with a maximum penalty of $53,000. 

Information required on Form 990-EZ

Form 990-EZ is a short form, but there’s still a lot of information to report. The best way to keep your filing process simple and quick is to get prepared ahead of time.

When you file Form 990-EZ, you’ll need to provide details about revenue, expenses, and changes in net assets or fund balances for your nonprofit. For more information on how to complete Part 1 of Form 990-EZ, visit this blog

Nonprofits are also required to balance a balance sheet to give the IRS a clear outline of their financial position. For instructions on how to complete the balance sheet portion of Form 990-EZ, click here.

You will also need to provide a description of your organization’s programs and service accomplishments. Be ready to list officers, directors, trustees, and any key or highly compensated employees. 

E-file Form 990-EZ Easily

The IRS mandates e-filing for 990 series forms, and Form 990-EZ is no exception. If you’re looking for an easy and safe way to keep your organization IRS compliant, working with an IRS-authorized e-file provider is a great option.

With ExpressTaxExempt, you can complete Form 990-EZ in 4 simple steps.

  1. Create a FREE account or sign in with ExpressTaxExempt
  2. Enter basic organization details and select Form 990-EZ
  3. Enter your organization’s information
  4. Review information summary and transmit to the IRS

We’re here to support you with great, U.S.-based support and everything you need to have a smooth deadline. Don’t forget to file Form 990-EZ for your organization by May 17, 2021. 

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