2017-2025 Form

What is the 990-EZ Form?

The 990-EZ Form is a streamlined version of the Form 990, designed specifically for small tax-exempt organizations in the United States. This form is required for nonprofits that have gross receipts exceeding $50,000 but less than $200,000 and total assets under $500,000 at the end of the tax year. The primary purpose of the 990-EZ Form is to provide the Internal Revenue Service (IRS) with essential financial information regarding the organization’s activities, governance, and compliance with tax regulations.

How to Use the 990-EZ Form

Using the 990-EZ Form involves several key steps. Organizations must first gather relevant financial data, including income, expenses, and asset information. Once the necessary information is compiled, the organization can fill out the form, ensuring all required sections are completed accurately. The form can be submitted electronically through the IRS e-file system or by mailing a paper copy to the appropriate address. It is important for organizations to review the completed form for accuracy before submission to avoid potential penalties.

Steps to Complete the 990-EZ Form

Completing the 990-EZ Form involves a series of methodical steps:

• Gather financial records, including income statements and balance sheets.
• Fill out the organization’s basic information, including name, address, and Employer Identification Number (EIN).
• Report total revenue, expenses, and changes in net assets on the form.
• Complete the governance section, detailing the organization’s board members and any related party transactions.
• Review the form for completeness and accuracy.
• Submit the form electronically or via mail to the IRS.

Filing Deadlines / Important Dates

The filing deadline for the 990-EZ Form is typically the 15th day of the fifth month after the end of the organization’s fiscal year. For organizations operating on a calendar year, this means the form is due by May 15. If the deadline falls on a weekend or holiday, the due date is extended to the next business day. Organizations can apply for an automatic six-month extension by filing Form 8868, but it is crucial to ensure that the extension is submitted on time to avoid penalties.

Legal Use of the 990-EZ Form

The 990-EZ Form serves as a legal document that provides transparency regarding a nonprofit’s financial activities. Filing this form is a legal requirement for eligible organizations, and failure to submit it can result in penalties, including the loss of tax-exempt status. The information disclosed in the form is publicly accessible, allowing stakeholders, including donors and regulatory bodies, to assess the organization’s financial health and compliance with IRS regulations.

Key Elements of the 990-EZ Form

The 990-EZ Form consists of several key sections that organizations must complete:

• Basic information about the organization, including its name, address, and EIN.
• Financial data, including total revenue, expenses, and net assets.
• Details about the organization’s mission and programs.
• Information regarding governance, including the board of directors and any related party transactions.
• Signature of an authorized individual certifying the accuracy of the information provided.