Preparing a Nonprofit Tax Return

How to prepare a nonprofit tax return

IRS Form 990 is an annual information return that tax-exempt and nonprofit organizations must file each year with the IRS to report information regarding their mission, programs, and financial statements for the tax year. 990 forms serve as a way for organizations to uphold their tax-exempt status. 

To help your organization prepare your nonprofit tax return quickly and easily, review this checklist to ensure you have all the necessary information to begin your return: 

  1. Choosing the right form to file

There are different variants of 990 forms available. Depending upon the gross receipts, assets, and the primary source of income of your organization, the 990 forms you require to file may vary.

    • Form 990-N (e-Postcard) is typically filed if an organization has gross receipts of $50,000 or less. Organizations can also voluntarily file Form 990 or 990-EZ instead of Form 990-N.
    • Form 990-EZ is typically filed if an organization has gross receipts of greater than $50,000 but less than $200,000 and total assets at the end of the year are less than $500,000. 
    • Form 990 is typically filed if an organization has gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000 at the end of its tax year.
    • Form 990-PF is typically filed by Exempt & Taxable Private Foundations as well as Non-Exempt Charitable Trusts, which the IRS treats as private foundations.

  2. Knowing your deadline

Form 990 due date depends upon the accounting period that your organization follows.

    • For fiscal tax year organizations, the return must be filed by the 15th day of the 5th month after an organization’s accounting period ends. 
    • If an organization follows a calendar tax year, its deadline will be May 15th

If the 15th is a weekend or holiday, the due date will be the next weekday.

  3. Reporting all the required information

When filing a 990 series return, you will need to provide a lot of information about your organization. Considering this, it is extremely helpful to have certain information and documents handy while filing your return.

IRS Determination Letter: 

Your IRS determination letter will include important information regarding your organization’s accounting period end date, annual filing requirements, and tax-exempt status.

Identification Information: 

When you begin filing your return, you will need to provide some basic information about your organization. This information will include your organization’s name, EIN, address, and fiscal or calendar tax year information. You will also need to include information regarding the programs your organization offers, officer information, and your group exemption number. 

Financial Information

You will be asked to provide your organization’s financial information when you file a 990 series form. Be ready to report all your revenue, expenses, and assets. Filing a nonprofit tax return provides a statement of your organization’s financial position to the IRS and the public. 

Based on the information you report on your 990 forms, you may also be required to report additional information through 990 Schedules.

  4. Meeting Your IRS-Mandated E-filing Requirements

The Taxpayer First Act, enacted on July 1, 2019, mandates tax-exempt organizations to electronically file their 990 series returns. Starting from the 2019 Tax year, Form 990 can only be e-filed.

To make your e-filing process simpler and straightforward, all you need is an ideal e-file solution provider, and, Tax 990 can be your perfect choice!

Get Started with Tax 990!

Tax 990 is here to provide nonprofit and tax-exempt organizations with a streamlined e-filing experience. With the helpful features of Tax 990, nonprofits and tax-exempt organizations can meet their IRS Form 990 series deadlines quickly and easily.  

  • We offer two different filing methods such as Form-based filing and Interview-style filing, to make your nonprofit tax filing easier than ever
  • Tax 990 comprises an Internal Audit Check system to ensure the accuracy of your returns.
  • You never have to worry about getting your queries resolved, as our Live Customer Support team is available via live chat, phone, and email. Learn more about our features

Start e-filing your return today with Tax 990! E-file Now