- April 17, 2023
Most tax-exempt organizations are required by the Internal Revenue Service (IRS) to submit an annual information return, either e-file Form 990 or Form 990-EZ, based on their size and type. If an organization has total assets over $500,000 or gross receipts exceeding $200,000 annually, it should file a Form 990. However, if its revenues don’t exceed $200K or assets are under $500K, it could opt to file form 990-EZ instead of form 990. Some entities, like churches, are not required to file these tax Forms.
E-File IRS Form 990:
The annual information return for tax-exempt organizations, which also consists of political organizations, is called Form 990 or Return of Organization Exempt From Income Tax.
If a political organization has an annual gross receipt of $25,000 or higher, it must submit Form 990 unless exempted. Political organizations that fall under the exception category for filing Form 8871 and those categorized as association or caucus of state/local officials are also exempted from filing for Form 990. Qualified local/state political organizations should only file for Form 990 if their gross receipts go beyond $100,000.
The deadline for submitting Form 990 is on the 15th day of the fifth month after the conclusion of the organization’s taxable year. For organizations following a calendar year, May 15th of the succeeding year is when they should file their Form 990.
IRS Form 990- EZ:
The annual information return for exempt organizations, specifically political organizations, is called Form 990-EZ. If a political organization is mandated to file Form 990 and has not surpassed certain limits on its total gross receipts for the year or total assets at year-end, it may submit Form 990-EZ instead of the standard Form 990. Additional details concerning these thresholds can be found in the Filing Phase-In section.
990-EZ is a two-page tax return Form that can be filed electronically. Generally, the non-profits that grow in their revenues will switch from the 990-e postcard to Form 990-EZ. It is important to know the organization’s financials in detail to file this tax Form with the IRS. Information that is required is,
- Revenue, expenses, fund balances, and net assets changes.
- Statements concerning service accomplishments
- Company balance sheets
- Itemization of the grants received
- List of directors, trustees, and key employees of the organization.
In Short, Tax Form 990-N is filed by organizations with gross receipts of less than $5000. Tax Form 990-EZ is filed by the organization with gross receipts between $50,000 and $2,00,000. An organization files Form 990 with gross receipts that are more than $2,00,000. Form 990-PF is filed by all private foundations, regardless of their financial status.
Bottom Line:
Thus, organizations should file different 990 Forms according to their type and functioning. These Forms are due by the 15th day of May month of the tax year, after the close of the tax year. It is pertinent to get help from credible tax filing professionals like Tax2efile to get these Forms e-filed with the IRS within the deadline.
