Form 990-EZ Filing Instructions for Nonprofits

Form 990-EZ is a return form used by tax-exempt organizations under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code whose gross receipts are less than $200,000 and greater than $50,000 during their tax year.

It is a shortened version of the long Form 990 return. Depending on the type of organization and its financial activities, filers may need to fill out additional documents called Schedules. 

Parts of Form 990-EZ

There are 6 parts of a Form 990-EZ. 

• First, you’ll need to provide basic information about your organization. This includes
  • Box A – Beginning and end dates of the corresponding tax year
  • Box B – Purpose of the form
    • Indicate if the form reports an address change, name change, initial return, final return/terminated organization, amended return, or pending application
  • Box C – Name and address of the organization
  • Box D – Employer Identification Number (EIN)
  • Box E – Telephone number
  • Box F – Group exemption number
  • Box G – Accounting method
    • Cash or accrual
  • Box H – Check if not required to attach Schedule B
  • Box I – Website
  • Box J – Tax-exempt status 
    • Check applicable section: 501(c)(3), 501(c)() (mention number), 4947(a)(1), or 527
  • Box K – Type of organization
    • Corporation, trust, association, or other
  • Box L – Gross receipts

• Part I – Revenue, Expenses, and Changes in Net Assets or Fund Balances

• • Revenue (lines 1-9) – Report your organization’s revenue generated from various sources
  • Expenses (lines 10-17) – Report all the expenses made by your organization during the corresponding tax year
  • Net Assets (lines 18-21) – Report the value of your organization’s net assets.

• Part II – Balance Sheet – report the value of assets and liabilities at the beginning and end of the tax year. There are two columns, beginning and end of year.
  • Lines 22-24 require the values of cash, savings, investments, properties, and other assets
  • Lines 25-26 require the value of total assets and liabilities
  • Line 27 requires the value of net assets or fund balances, matching line 21.

• Part III – Statement of Program Service Accomplishments – Program service accomplishments are activities carried out by an organization that serve that organization’s exempt purpose.
  • Lines 28-30 require a description of the 3 largest program service accomplishments made by your organization during the tax year
  • Line 31 requires a mention of any other program services. If applicable, you’ll need to attach Schedule O to expand on these.
  • Line 32 requires the total expenses incurred on program service accomplishments

• Part IV- List of Officers, Directors, Trustees, and Key Employees

• • Requires details about key employees including
    • Name and title
    • Average hours per week
    • Compensation
    • Health benefits, contributions to employee benefit plans, and deferred compensation
    • Amount of other compensation

• Part V – Other information – Asks questions about your organization’s activities.
  • Lines 33-38 require information about significant activities not reported previously and any significant changes made to organizing documents. You may also need to provide details about unrelated business income of $1000 or more, liquidation, dissolution, termination, or significant disposition of net assets, political expenditures, and 1120-POL filing requirements. Lastly, any borrowed or granted loans.
  • Lines 39-40 require details of initiation fees, capital contributions, and gross receipts as well as any engagement in an excess benefit transaction with a disqualified person and excise taxes imposed and reimbursed by the organization.
  • Lines 41-46 ask about state filing requirements, books and records, foreign financial accounts, and tax-exempt interest. Mention if the organization has a controlled entity or is involved in any transaction with a controlled entity. Lastly, mention if the organization is involved in any political campaigning.

• Part VI – Section 501(c)(3) Organizations Only – only needed by Section 501(c)(3) organizations.
  • Lines 47-49 require information about lobbying activities or transfers to an exempt non-charitable related organization. Also mention if your organization is a school.
  • Line 50 requires details of the 5 highest compensated employees who received more than $100,000 in compensation
  • Line 51 requires the details of the 5 highest paid independent contractors in your organization who received more than $100,000 as compensation. 
  • Line 52 asks for a description of your organization’s Schedule A requirement.

• Lastly, you’ll need a signature from the president, vice president, treasurer, assistant treasurer, chief accounting officer, or other corporate officers who are authorized. Paid preparers who prepared your form can also be mentioned.

What’s next?

If your organization is required to file additional 990 schedules, Tax 990 will automatically generate them onto your form. You can learn more about Schedules here.

Form 990-EZ can be a little overwhelming. Tax 990 offers a breakdown of each part as well as step-by-step help and a live customer support team. Understanding your 990 filing has never been easier.

Get started with your Form 990-EZ e-filing today at tax990.com.