Schedule a Form 990 or 990 EZ

What is the Schedule A Form 990 or 990 EZ

The Schedule A Form 990 or 990 EZ is a crucial document used by tax-exempt organizations in the United States to provide detailed information about their public charity status. This form is part of the Internal Revenue Service (IRS) Form 990 series, which organizations must file annually to maintain their tax-exempt status. The Schedule A helps the IRS and the public understand how an organization qualifies as a public charity, detailing aspects such as its sources of revenue and the types of activities it engages in. Nonprofits use this form to report their financial activities, ensuring transparency and accountability in their operations.

How to Use the Schedule A Form 990 or 990 EZ

Using the Schedule A Form 990 or 990 EZ involves several steps. Organizations must first determine if they are required to file this schedule based on their public charity status. Once confirmed, they should gather necessary financial information, including revenue sources and program expenses. The form requires organizations to disclose their public support test results, which assess whether they meet the IRS's criteria for public charity status. After completing the form, organizations must file it along with their main Form 990 or 990 EZ, ensuring all information is accurate and comprehensive to avoid penalties.

Steps to Complete the Schedule A Form 990 or 990 EZ

Completing the Schedule A Form 990 or 990 EZ involves a systematic approach:

• Gather financial documents: Collect all relevant financial records, including income statements and balance sheets.
• Determine public support: Calculate the total support received from contributions, grants, and other sources.
• Complete the form: Fill out the required sections, including the public support test and revenue sources.
• Review for accuracy: Double-check all entries for correctness and completeness.
• File the form: Submit the completed Schedule A along with the main Form 990 or 990 EZ by the deadline.

Filing Deadlines / Important Dates

Filing deadlines for the Schedule A Form 990 or 990 EZ align with the deadlines for the main Form 990. Generally, organizations must file their forms by the 15th day of the fifth month after the end of their tax year. For example, if an organization operates on a calendar year, the filing deadline would be May 15. Organizations can apply for a six-month extension, but they must file Form 8868 to request this extension. It is essential to adhere to these deadlines to avoid penalties and maintain compliance with IRS regulations.

Key Elements of the Schedule A Form 990 or 990 EZ

Several key elements are integral to the Schedule A Form 990 or 990 EZ:

• Public support test: This section evaluates the organization's public support to determine if it qualifies as a public charity.
• Revenue sources: Organizations must disclose their income sources, including contributions, grants, and program service revenue.
• Exempt activities: The form requires details about the exempt activities the organization conducts to further its charitable purposes.
• Financial statements: Organizations must provide financial statements that reflect their overall financial health and operations.

Legal Use of the Schedule A Form 990 or 990 EZ

The Schedule A Form 990 or 990 EZ serves a legal purpose by ensuring compliance with federal tax laws governing tax-exempt organizations. By accurately completing and filing this form, organizations demonstrate their adherence to IRS regulations, which is essential for maintaining their tax-exempt status. Failure to file or inaccuracies in the form can lead to penalties, loss of tax-exempt status, or increased scrutiny from the IRS. Therefore, it is vital for organizations to understand the legal implications of this form and to ensure that all information provided is truthful and complete.