2017-2025 Form

What is the 990 Form

The 990 Form is a crucial tax document used by nonprofit organizations in the United States. It provides the Internal Revenue Service (IRS) with information about the organization’s financial activities, governance, and compliance with federal tax laws. This form is essential for maintaining tax-exempt status and ensuring transparency in financial reporting. Nonprofits must file this form annually, and it serves as a public disclosure document, allowing donors and the public to evaluate the organization’s financial health and operational practices.

Steps to complete the 990 Form

Completing the 990 Form involves several key steps to ensure accuracy and compliance. First, gather all necessary financial records, including income statements, balance sheets, and expense reports. Next, follow these steps:

• Review the form’s instructions carefully to understand the specific requirements.
• Fill out the basic information section, including the organization’s name, address, and Employer Identification Number (EIN).
• Complete the financial sections, detailing revenues, expenses, and net assets.
• Provide information about the organization’s governance, including board members and their compensation.
• Attach any required schedules that provide additional details on specific activities or financial information.
• Review the completed form for accuracy and ensure all required signatures are included.

How to obtain the 990 Form

Organizations can obtain the 990 Form directly from the IRS website or through various tax preparation software. The form is available in different versions, depending on the organization’s size and type. For smaller nonprofits, the 990-EZ or 990-N (e-Postcard) may be appropriate. Larger organizations typically use the full 990 Form. It is advisable to download the most current version to ensure compliance with any updates or changes in tax regulations.

Filing Deadlines / Important Dates

Nonprofits must adhere to specific deadlines when filing the 990 Form. 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 thirty-first, the form is due by May fifteenth. Organizations can apply for a six-month extension if needed, but they must file Form 8868 to request this extension. It is vital to meet these deadlines to avoid penalties and maintain good standing with the IRS.

Legal use of the 990 Form

The 990 Form is legally required for tax-exempt organizations to report their financial activities. Failure to file this form can result in penalties, including the loss of tax-exempt status. Organizations must ensure that the information provided is accurate and complete, as discrepancies can lead to audits or legal issues. Additionally, the form must be made available to the public, reinforcing the importance of transparency in nonprofit operations.

Key elements of the 990 Form

The 990 Form consists of several key sections that provide comprehensive information about the organization. Important elements include:

• Basic organization information, including name, address, and EIN.
• Financial statements that detail revenues, expenses, and net assets.
• Governance details, including board member information and compensation.
• Program service accomplishments that outline the organization’s mission and impact.
• Disclosure of any related organizations or partnerships.