Can You Switch from Form 990-N to 990-EZ? What Nonprofits Need to Know

Estimated reading time: 7 minute(s)

If your nonprofit has been faithfully filing the 990-N e-Postcard year after year, you might wonder: what happens when your organization starts to grow? Can you simply switch to the 990-EZ? And more importantly, do you have to?

The short answer is yes, you can switch, and in many cases, you are required to. Here’s everything nonprofits need to know about making that transition smoothly.

First, a Quick Refresher on the Two Forms 

Form 990-N (the e-Postcard) is the IRS’s simplified filing option for small tax-exempt organizations. It’s available to nonprofits with gross receipts of $50,000 or less per year. The form itself is minimal; just eight data points confirming your organization is still active.

Form 990-EZ is a step up: a four-page “short form” return for organizations with gross receipts under $200,000 and total assets under $500,000. It requires more detailed reporting on finances, programs, governance, and key personnel — but it’s still far less involved than the Full Form 990.

When Can You Switch?

You can voluntarily file a 990-EZ at any time, even if your gross receipts are low enough to qualify for the 990-N. Some organizations choose to do this early on to: 

• Build a track record of more detailed financial transparency 
• Satisfy requirements of certain grant funders or foundations 
• Demonstrate organizational maturity to prospective donors 
• Prepare for anticipated growth

Filing a more comprehensive form than required is always permitted, and often builds greater donor trust and transparency. 

When Are You Required to Switch?

Once your organization’s gross receipts exceed $50,000 in a tax year, you are no longer eligible to file 990-N. At that point, you must file a minimum of the 990-EZ (or the full 990, depending on your size and preference). Also note: If your receipts jump past $200,000 or your assets exceed $500,000, you’ll bypass the 990-EZ entirely and move directly to the full Form 990.

What If You’ve Already Filed the Wrong Form?

If you realize you filed a 990-N in a year when you should have filed a 990-EZ, prepare and file a paper Form 990-EZ as soon as possible, and check the “Amended Return” box in the heading of the form. The IRS is generally more receptive to organizations that proactively address errors than those who ignore them.

The Bottom Line 

Switching from the 990-N to the 990-EZ is a natural part of a nonprofit’s growth. Get your financial records in order early, understand where your state obligations stand, and never let a filing year slip by unaddressed. 

Interested in making the switch to Form 909-EZ? Learn how to easily file Form 990-EZ with Tax990.