990 Ez 2017

What is the 990 EZ?

The IRS Form 990 EZ is a streamlined version of the standard Form 990, designed for smaller tax-exempt organizations. This form provides a concise overview of the organization's financial activities, governance, and compliance with tax regulations. It is typically used by organizations with gross receipts of less than two hundred fifty thousand dollars and total assets under five hundred thousand dollars. The 990 EZ helps organizations report their income, expenses, and changes in net assets, ensuring transparency and accountability to the public and the IRS.

How to use the 990 EZ

Using the IRS Form 990 EZ involves several key steps. First, organizations must gather relevant financial data, including income statements, balance sheets, and details about expenses. Once the necessary information is compiled, organizations can fill out the form, which includes sections on revenue, expenses, and net assets. It is crucial to ensure accuracy and completeness to avoid potential penalties. After completing the form, organizations must submit it to the IRS by the appropriate deadline, typically the fifteenth day of the fifth month after the end of their fiscal year.

Steps to complete the 990 EZ

Completing the IRS Form 990 EZ requires a systematic approach. Follow these steps for accurate completion:

• Gather financial records, including income, expenses, and asset details.
• Fill out Part I, which covers revenue and expenses.
• Complete Part II, detailing the balance sheet.
• Provide information about governance and management in Part III.
• Review the form for accuracy and completeness.
• Submit the completed form to the IRS by the designated deadline.

IRS Guidelines

The IRS provides specific guidelines for completing the Form 990 EZ. Organizations must adhere to these instructions to ensure compliance. Key guidelines include accurately reporting all sources of income, categorizing expenses correctly, and maintaining proper documentation to support the reported figures. The IRS also emphasizes the importance of timely filing to avoid penalties and maintain tax-exempt status. Organizations should consult the IRS website or seek professional advice if they have questions regarding the guidelines.

Filing Deadlines / Important Dates

Filing deadlines for the IRS Form 990 EZ are crucial for compliance. Generally, organizations must file the form by the fifteenth day of the fifth month following the end of their fiscal year. For example, if an organization’s fiscal year ends on December thirty-first, the form is due by May fifteenth of the following year. Organizations can apply for an extension, but they must file Form 8868 to receive an additional three months. It is essential to keep track of these dates to avoid penalties and maintain good standing with the IRS.

Required Documents

Before completing the IRS Form 990 EZ, organizations should prepare several key documents. These include:

• Financial statements, including income and balance sheets.
• Records of all sources of income and expenses.
• Documentation of any significant changes in net assets.
• Details about governance, including board member information.
• Any additional schedules that may be required based on the organization's activities.

Penalties for Non-Compliance

Failure to comply with the IRS Form 990 EZ filing requirements can result in significant penalties. Organizations that do not file on time may incur fines, which can accumulate for each month the form is late. Additionally, repeated failure to file can lead to the loss of tax-exempt status. It is vital for organizations to understand these risks and ensure timely and accurate filing to avoid negative consequences.