2010-2025 Form

What is the Form 990 EZ

The Form 990 EZ is a simplified version of the standard Form 990, used by tax-exempt organizations in the United States to report their financial information to the Internal Revenue Service (IRS). This form is designed for smaller organizations that have gross receipts of less than $200,000 and total assets of less than $500,000. By using Form 990 EZ, eligible organizations can provide essential details about their income, expenses, and activities in a more straightforward format, making it easier to comply with federal tax reporting requirements.

How to use the Form 990 EZ

To effectively use the Form 990 EZ, organizations must first ensure they meet the eligibility criteria based on their financial thresholds. Once confirmed, they can obtain the form from the IRS website or other authorized sources. The organization should gather all necessary financial documentation, including income statements, balance sheets, and records of expenses. After filling out the form, it must be signed by an authorized individual, such as the executive director or board chair, before submission to the IRS.

Steps to complete the Form 990 EZ

Completing the Form 990 EZ involves several key steps:

1. Gather financial records, including income, expenses, and asset information.
2. Download the Form 990 EZ from the IRS website.
3. Fill in the required fields, ensuring accuracy in reporting financial data.
4. Review the completed form for any errors or omissions.
5. Sign the form by an authorized representative of the organization.
6. Submit the form to the IRS by the designated deadline, either electronically or by mail.

Legal use of the Form 990 EZ

The Form 990 EZ is legally binding when completed and submitted according to IRS guidelines. Organizations must ensure that the information provided is accurate and truthful to avoid potential penalties. The form must be signed by an authorized individual, which adds to its legal standing. Compliance with the IRS's filing requirements is essential for maintaining tax-exempt status and avoiding issues with federal regulations.

Filing Deadlines / Important Dates

Organizations must adhere to specific filing deadlines for the Form 990 EZ. 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 an organization’s fiscal year ends on December 31, the Form 990 EZ must be filed by May 15 of the following year. It is crucial for organizations to track these deadlines to maintain compliance and avoid late filing penalties.

Required Documents

When completing the Form 990 EZ, organizations should prepare several key documents, including:

• Financial statements, including income and expense reports.
• Balance sheets detailing assets and liabilities.
• Records of contributions and grants received.
• Documentation of any program service accomplishments.

Having these documents ready will streamline the completion process and ensure accurate reporting.

Penalties for Non-Compliance

Failure to file the Form 990 EZ or submitting inaccurate information can result in significant penalties. The IRS may impose fines for late filings, which can accumulate over time. Additionally, organizations that do not comply with filing requirements risk losing their tax-exempt status. It is essential for organizations to prioritize timely and accurate submissions to avoid these consequences.