A Form 990 is a tax form that an organization must file annually with the IRS. This form provides information about the organization’s income, expenses, and other information to the IRS for most exempt organizations.
The Internal Revenue Code requires an organization to file a Form 990 if its gross receipts over $200,000 or more than 25% of its total assets consist of stocks or securities.
Reasons For Filing Form 990
Form 990 helps organizations provide transparency to donors and supporters, which, in turn, builds trust between nonprofits and those who support them. The form also provides documentation for grantors or contributors who may be considering giving a gift or donation to your organization.
When Should a Nonprofit file Form 990
Every nonprofit organization has a responsibility to report their income and expenditures, as well as any other information that the IRS requires. Nonprofits are required to file Form 990 with the IRS each year. It’s important that you understand when you should file form 990 so that you don’t miss the deadline.
How To Know Which Form 990 to File?
There are 4 different types of Forms 990:
- 990 N– Your organization needs to 990 N if your gross receipts are under $50,000.
- 990 EZ– If your organization’s assets are under $500,000 and gross receipts are under 200,00 then your organization needs to file 990 EZ.
- 990 Full– if your gross receipts and total assets are above $200,000 and $500,000 respectively, your organization needs to file 990 Full.
- 990 PF– Regardless of their status, all private foundations are required to file 990 PF.
How Can a2z-Filings Help?
Filing Form 990 can be confusing and difficult at first, but don’t worry. A2zFilings has the right information and experts to help your organization succeed.