Form 990

What is the Form 990

The Form 990 is a crucial document that tax-exempt organizations in the United States must file annually with the Internal Revenue Service (IRS). This form provides transparency about an organization’s financial status, governance, and activities. It includes detailed information about revenue, expenses, and compensation for the highest-paid employees. The IRS uses this data to ensure compliance with tax laws and to maintain the integrity of tax-exempt status.

How to use the Form 990

Organizations utilize the Form 990 to report their financial activities and to demonstrate compliance with federal regulations. This form is essential for maintaining tax-exempt status and for informing donors and the public about the organization’s operations. Users should carefully review the instructions provided by the IRS to ensure accurate reporting. The form can also serve as a tool for organizations to assess their financial health and operational effectiveness.

Steps to complete the Form 990

Completing the Form 990 involves several key steps:

1. Gather financial records, including income statements, balance sheets, and expense reports.
2. Review the IRS guidelines to understand the specific requirements for your organization type.
3. Fill out the form, ensuring all sections are completed accurately, including revenue, expenses, and governance information.
4. Review the completed form for accuracy and compliance with IRS regulations.
5. Submit the form electronically or via mail by the designated filing deadline.

Legal use of the Form 990

To be considered legally valid, the Form 990 must be completed in accordance with IRS guidelines. This includes providing accurate financial information and ensuring that all required sections are filled out. Organizations must also maintain records that support the information provided in the form. Failure to comply with these legal requirements can result in penalties, including the loss of tax-exempt status.

Filing Deadlines / Important Dates

Organizations must be aware of the filing deadlines for the Form 990 to avoid penalties. Generally, the form is due on the fifteenth day of the fifth month after the end of the organization’s fiscal year. For example, if the fiscal year ends on December 31, the Form 990 is due on May 15 of the following year. Organizations can apply for an extension, but they must file the extension request before the original due date.

Form Submission Methods (Online / Mail / In-Person)

The Form 990 can be submitted through various methods. Most organizations opt for electronic filing, which is often faster and more efficient. The IRS provides a designated online portal for this purpose. Alternatively, organizations can mail a paper copy of the form to the appropriate IRS address. In-person submissions are generally not accepted, and it is essential to ensure that the submission method chosen complies with IRS regulations.