Many people are surprised to find that nonprofit organizations have strict filing requirements with the IRS, despite the fact that they are exempt from federal income taxes. All nonprofit organizations that are exempt under Section 501(c)(3) of the IRS tax code are required to file a 990 series return with the IRS on an annual basis.
Why are these reporting requirements so intricate? Great question! As a tax-exempt organization, nonprofits exist for a sole charitable purpose, their mission so to speak.
Part of carrying out this mission is by being an excellent steward of the donations and contributions they receive from their community, donors, and even granting organizations. All 990 series returns are released to the public by the IRS with the goal of increasing financial transparency within the nonprofit sector.
These filing requirements also extend to the organizations that are created to fund nonprofits in their charitable endeavors. This is typically referred to as a private foundation. These organizations are structured in a way that allows them to fund the activities and programming requirements of charitable organizations rather than their own.
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 Organizations Are Required to File Today?
Organizations are 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 July 1st and ending on June 30th.
- The organization filed an IRS tax extension Form 8868 to extend a 990 deadline on May 15, 2023.
Organizations that are unsure about their tax year, should check their IRS determination letter to confirm.
Determining What 990 Return to File
Organizations with a deadline today – and no idea where to start- should begin by determining which form they must file. Here is an overview of the 990 series return and the filing requirements for each:
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.
Last Minute 990 E-filing with Tax990!
Filing an entire 990 return on the day it’s due may sound daunting, and while it’s not ideal, Tax 990 is here to help you get it done! First things first, gather all of your organization’s financial information for the year. Some of the most important information will include the annual gross receipts, total assets, expenses, programming and activity costs, any unrelated business income, and details and compensation of key officials in the organization.
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.
Plus, our dedicated customer support team is here to assist you during the e-filing process by phone, email, and live chat!
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