990 Ination 2022-2025 Form

What is the 990 EZ?

The 990 EZ is a simplified version of the IRS Form 990, designed specifically for smaller tax-exempt organizations. It is used to report annual financial information, including revenue, expenses, and changes in net assets. Organizations that typically qualify to use the 990 EZ include those with gross receipts under two hundred fifty thousand dollars and total assets under five hundred thousand dollars. This form allows these organizations to fulfill their tax reporting obligations while minimizing the complexity involved in the process.

How to Use the 990 EZ

To effectively use the 990 EZ, organizations should gather all necessary financial information before starting the form. This includes income statements, balance sheets, and details about any grants or contributions received. The form consists of several sections that require organizations to disclose their financial activities, governance structure, and any changes in operations. Properly completing the 990 EZ ensures compliance with federal regulations and maintains the organization’s tax-exempt status.

Steps to Complete the 990 EZ

Completing the 990 EZ involves several key steps:

1. Gather financial records, including income, expenses, and assets.
2. Fill out the basic information section, including the organization’s name, address, and EIN.
3. Complete the financial sections, detailing revenue, expenses, and net assets.
4. Provide information about governance, including board members and any changes in leadership.
5. Review the completed form for accuracy and ensure all required schedules are attached.
6. File the form with the IRS by the appropriate deadline.

Filing Deadlines / Important Dates

Organizations must file the 990 EZ by the fifteenth day of the fifth month after the end of their fiscal year. For many organizations operating on a calendar year, this means the deadline is May 15. It is essential to keep track of these deadlines to avoid penalties. If an organization cannot meet the deadline, it may apply for an extension, which typically grants an additional six months to file.

Required Documents

When completing the 990 EZ, organizations should have several documents on hand to ensure accurate reporting. These documents include:

• Financial statements, including income and balance sheets.
• Records of contributions and grants received.
• Documentation of expenses incurred during the fiscal year.
• Information on any changes in governance or leadership.

Penalties for Non-Compliance

Failing to file the 990 EZ on time can result in significant penalties. The IRS imposes fines that can accumulate for each month the form is late, reaching a maximum penalty amount. Additionally, organizations that fail to file for three consecutive years may automatically lose their tax-exempt status. Therefore, it is crucial for organizations to prioritize timely and accurate filing to maintain compliance and avoid these repercussions.