If you have a nonprofit organization, then you will need to submit IRS Form 990 on a yearly basis. But, what is Form 990 and why is it required? This article will help you understand the purpose of Form 990 and what’s required when submitting the form to the IRS.
What Is A Form 990?
Form 990 is an information return that most nonprofit organizations are required to file yearly with the IRS. The form provides the public with financial information about the nonprofit. It also allows the IRS to track whether or not your organization is complying with nonprofit tax laws.
There are multiple variations of Form 990, so you will need to choose the correct one, depending on your organization. The most common variations of Form 990 are:
– IRS Form 990-EZ: This is the shortest and most simple form. It can be filed by a nonprofit organization that has gross receipts of less than $200,000 and total assets of less than $500,000.
– IRS Form 990: This is the most common variant of Form 990. It’s somewhat longer and more detailed than the EZ version. To file this form, your nonprofit must have gross receipts of more than $200,000 or total assets of more than $500,000.
-Form 990-N: This is a postcard-sized form that is to be filed by nonprofit organizations with gross receipts of less than $50,000.
-Form 990-PF: This form is filed by private foundations.
What Information Does IRS Form 990 Collect from a Nonprofit Organization?
IRS Form 990 collects information about the yearly finances, programs, and governance of a nonprofit organization. The Form collects specifics regarding how much money the nonprofit raised, how much money it spent, and what kind of programs it offered during the year. Form 990 also collects yearly information regarding the nonprofit’s board of directors and what they were paid.
What’s Required When Submitting Your IRS Form 990?
When you are ready to file your Form 990, you will need to gather some financial information about your nonprofit. This information includes:
-Your nonprofit’s financial statements for the filing year
-A list of your nonprofit’s officers, directors, and trustees
-A copy of your nonprofit’s IRS ruling letter (if you have one)
-A schedule of your nonprofit’s assets and liabilities
-A schedule of your nonprofit’s income and expenses
-A schedule of your nonprofit’s grants and other contributions
-A schedule of your nonprofit’s program service accomplishments
How To Submit Your Form 990
Once you have gathered all the required information, you can submit your Form 990 electronically or by mail.
To file electronically, you will need to create an account on the IRS website. Once you have an account, you can log in and submit your Form 990.
To file by mail, you will need to print out your Form 990 and send it to the IRS. The address will be listed on the instructions for the form.
The due date for IRS Form 990 varies, depending on the type of nonprofit organization you operate. Most organizations will need to file their Form 990 by the 15th day of the 5th month after their fiscal year ends. For example, if your nonprofit’s fiscal year ends on December 31, you will need to file your Form 990 by May 15 of the following year.
Hopefully, this article has helped you understand what’s required when submitting IRS Form 990 for your nonprofit organization. Remember to gather all the required information and details before you begin filling out the form. If you have any questions, you can always consult with an accountant or tax professional.