It is surprising to discover that nonprofit entities face stringent filing obligations with the IRS, despite their exemption from federal income taxes. Every nonprofit organization falling under Section 501(c)(3) of the IRS tax code, which grants tax-exempt status, is mandated to submit an annual 990 series return to the IRS.
What prompts such meticulous reporting requirements? It’s a compelling query! Nonprofits, as tax-exempt entities, operate with a singular charitable mission. Executing this mission involves acting as responsible stewards of the donations and contributions they receive from their community, donors, and even granting organizations. The IRS publicly discloses all 990 series returns, aiming to enhance financial transparency within the nonprofit sector.
These reporting obligations also encompass entities established to financially support nonprofits in their charitable pursuits, commonly known as private foundations. Such organizations are designed to channel their resources into the activities and programmatic needs of charitable entities rather than focusing on their own interests.
Keep reading for an overview of the 990 filing requirements, what organizations today’s deadline applies to, and tips for filing on time (today)!
Which Nonprofits Must File Today?
Nonprofits are most likely required to file their annual 990 report with the IRS today if they meet the following criteria:
- The organization operates on a tax year beginning on September 1st and ending on August 31st.
- The organization filed an IRS tax extension Form 8868 to extend a 990 deadline on July 15, 2023.
Organizations that are unsure about their tax year, can find this information on their IRS determination letter.
Determining What 990 Return to File
Organizations with a deadline today – that aren’t sure where to start, must begin by determining which form they are required to file. Here is an overview of the 990 series returns which should be filed based on your organization’s financial situation.
Form 990-N: This is the shortest form available to the smallest nonprofit organizations, those with gross receipts of $50,000 or less.
Form 990-EZ: Organizations with gross receipts less than $200,000 and total assets less than $500,000 should file this form with the IRS.
Form 990: This is the standard long form. This form should be filed by organizations with annual gross receipts of $200,000 or more (or) total assets of $500,000 or more. It is also worth noting that organizations of any size can file the 990, they may choose to do so to increase their financial transparency for the benefit of their donors and other funding opportunities.
Form 990-T: This form is slightly different, not all organizations are required to file it. However, some organizations may need to file this form to report unrelated business income of $1,000 or more. Unrelated business income (UBI) is defined by the IRS as income that is generated by an organization through activities that are not directly related to its charitable purpose.
Meet Today’s 990 Deadline with Tax990!
Filing your entire 990 return on the day it’s due might seem challenging, but Tax 990 is here to assist you in completing the process efficiently. Start by collecting all the financial information for your organization throughout the year. Key details to gather include annual gross receipts, total assets, expenses, programming and activity costs, any unrelated business income, and information on compensation for key officials in the organization. While it’s not the ideal scenario, Tax 990 is designed to streamline the process for you.
After gathering this crucial information, you can now begin the process of e-filing with Tax990. We can help you file with these key features!
- Direct-Form Entry or Interview-Style Filing Options
- Internal Audit Checks using the IRS Business Rules
- Required Schedules are included in the filing fee
- Prior year filing and 990 amendments are supported.
- Instant IRS notifications are provided when 990 returns are accepted/rejected.
- Any rejected returns can be corrected and retransmitted to the IRS at no additional cost.
- Share 990 returns with organization officials and board members for final approval using the ‘Reviewers and Approvers’ feature.
Don’t worry, our dedicated customer support team is here to assist you during the e-filing process by phone, email, and live chat!
