Have you ever read through the information on the IRS website
for Form 990-EZ in its entirety? It never ends, those instructions seem to go on forever like Lambchop’s “Song That Never Ends”. The material can be condensed down a smidgen to a nice outline to help you understand the basics of IRS Form 990-EZ.
Purpose of Form 990-EZ
was created to provide a shorter alternative to filing Form 990. It is used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033.
There are multiple parts for the 990-EZ, but Parts I-V must be completed by all filing organizations. Part VI will need to be completed by section 501(c)(3) organizations and section 4947(a)(1) nonexempt charitable trusts. Here is a list of the information you will need to complete Form 990-EZ:
- Gross Income
- Total expenses incurred within the last year
- Disbursements within the year that are the reason the organizations is exempt
- Balance sheet showing assets, liabilities, and net worth
- Total contributions & gifts received during the year and the names and addresses of all substantial contributors
- Names and addresses of the foundation’s managers and highly-compensated employees
- compensation and other payments made during the year
- Lobbying expenditures and nontaxable amounts
- Direct or indirect transfers and relationships with other organizations of the same type
- Respective amounts of the taxes imposed on the organization or any manager of the organization
- Amounts of reimbursements paid by the organization during the taxable year for any taxes imposed
- Information on any excess benefit transaction
- Information on any disqualified persons
- Information on disaster relief activities
Who Can File
You will need to file Form 990-EZ if your tax-exempt organization has gross receipts of less than $200,000 or total assets of less than $500,000. This form is due on the 15th day of the 5th month after the organizations accounting period
Extension of Time To File
You can always extend your Form 990-EZ filing deadline with Form 8868
, also provided by Express990.com
. This extension will automatically give you an additional 3 months to file.
These are just your basics to understanding Form 990-EZ. Next time we will get into the nitty-gritty Conditions for a Properly Completed Form 990-EZ.