Instructions for Form 990 EZ Instructions for Form 990 EZ, Short Form Return of Organization Exempt from Income Tax under Sectio 2011

Understanding Form 990 EZ

Form 990 EZ is a short form return for organizations exempt from income tax under Section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code, excluding private foundations. This form is specifically designed for smaller tax-exempt organizations that meet certain criteria, allowing them to file a simplified version of the standard Form 990. Organizations that qualify typically have gross receipts of less than $200,000 and total assets of less than $500,000 at the end of the year. The form provides essential information about the organization’s mission, activities, and finances, ensuring transparency and compliance with IRS regulations.

Steps to Complete Form 990 EZ

Completing Form 990 EZ involves several key steps to ensure accuracy and compliance. First, gather all necessary financial documents, including income statements, balance sheets, and any relevant records of contributions and expenses. Next, fill out the form by providing detailed information about the organization, including its name, address, and Employer Identification Number (EIN). Ensure that all financial data is accurately reported, as this will reflect the organization's financial health. After completing the form, review it thoroughly for any errors or omissions before submission. Finally, submit the form to the IRS by the appropriate deadline, which is typically the fifteenth day of the fifth month after the end of the organization’s fiscal year.

Key Elements of Form 990 EZ

Form 990 EZ consists of several critical sections that organizations must complete. These include:

• Part I: Summary of the organization’s mission and activities.
• Part II: Financial information, including revenue, expenses, and net assets.
• Part III: Statements regarding the organization’s governance and management practices.
• Part IV: Additional schedules that may be required based on specific activities or financial situations.

Each section must be filled out accurately to provide a clear picture of the organization’s operations and ensure compliance with IRS guidelines.

Filing Deadlines for Form 990 EZ

The filing deadline for Form 990 EZ is the fifteenth day of the fifth month after the end of the organization’s fiscal year. For organizations operating on a calendar year, this typically 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, which allows additional time to prepare and submit the return.

Legal Use of Form 990 EZ

Form 990 EZ serves as a legal document that provides transparency regarding the financial activities of tax-exempt organizations. It is essential for maintaining compliance with federal tax regulations. Failure to file the form can result in penalties, including the loss of tax-exempt status. Organizations must ensure that they adhere to all legal requirements when completing and submitting the form, including accurate reporting of financial data and timely submission.

Obtaining Form 990 EZ Instructions

The instructions for Form 990 EZ can be obtained directly from the IRS website or through various tax preparation resources. These instructions provide detailed guidance on how to complete each section of the form, including definitions of terms and examples of how to report financial information. It is important for organizations to refer to these instructions to ensure compliance with current IRS regulations and to avoid common mistakes during the filing process.