2008-2025 Form

What is the Form 990

The Form 990 is a crucial tax document used by tax-exempt organizations, including charities and non-profits, to report their financial information to the Internal Revenue Service (IRS). This form provides transparency regarding the organization's income, expenses, and overall financial health. It is essential for maintaining tax-exempt status and ensuring compliance with federal regulations. The Form 990 comes in several variants, including the 990-EZ for smaller organizations and the 990-N for those with minimal revenue.

How to use the Form 990

Using the Form 990 involves several steps. Organizations must accurately report their financial activities, including revenue sources, expenditures, and program accomplishments. It's important to categorize expenses correctly and provide detailed information about the organization's mission and programs. The completed form must be filed annually with the IRS, and it is also made available to the public, which helps maintain transparency and trust with donors and the community.

Steps to complete the Form 990

Completing the Form 990 requires careful attention to detail. Here are the key steps:

• Gather necessary financial documents, including income statements, balance sheets, and previous tax filings.
• Fill out the basic information section, including the organization’s name, address, and Employer Identification Number (EIN).
• Report revenue sources and expenses in the appropriate sections, ensuring accuracy and completeness.
• Provide information about the organization’s mission, programs, and accomplishments.
• Review the form for accuracy and completeness before submission.

Legal use of the Form 990

The legal use of the Form 990 is governed by IRS regulations. Organizations must file this form annually to maintain their tax-exempt status. Failure to file or inaccuracies in reporting can lead to penalties, including loss of tax-exempt status. Additionally, the information provided on the Form 990 is subject to public scrutiny, which emphasizes the importance of accuracy and transparency in reporting.

Filing Deadlines / Important Dates

Filing deadlines for the Form 990 vary based on the organization’s fiscal year. Typically, the form is due on the 15th day of the fifth month after the end of the organization’s fiscal year. For organizations operating on a calendar year, the deadline is May 15. Extensions may be granted, but organizations must file Form 8868 to request an extension, which provides an additional six months to file.

Penalties for Non-Compliance

Organizations that fail to file the Form 990 on time or provide inaccurate information may face significant penalties. The IRS imposes fines for late filings, which can accumulate over time. Additionally, repeated failures to file can result in the automatic revocation of tax-exempt status. It is vital for organizations to stay compliant to avoid these consequences and maintain their eligibility for tax benefits.