The IRS 990 form is a document that reports the financial information of nonprofit organizations. The form includes donors, board members, salaries and bonuses, investments and grants. It also includes how much money goes to programs versus how much is spent on administration costs. In order for nonprofits to receive tax exemption, they are required by law to file the 990 with the IRS each year.
The purpose of this blog post is to help readers understand what exactly the 990 Form entails and why it’s important for people in nonprofit fields to know about it if they don’t already.
The Purpose of The 990 Form
Form 990 is a tax document filed with the IRS by federally exempt organizations. The Form 990 provides information on contributions, investments, expenditures and revenue to help decide whether an organization can maintain their tax-exempt status.
Do All Nonprofits Have To File 990?
All private foundations are required to file a 990 exempt religious organizations. This includes the organizations with tax exempt status and those who have assets of $500,000 in value or over. Gross receipts must also be at least $200,000 for this requirement to apply.
When Is The 990 Due?
990 should be filed after your accounting period ends by the 15th day of the 5th month. For example, the 990 should be filed no later than 15th May if your fiscal year ends on December 31st. That way, you’ll avoid any penalties for not filing it by this date.
The 990 form is a complex document, but it’s important for nonprofit professionals to be aware of the filing requirements and deadlines.
If you need assistance in filing your organization’s 990, then contact a2zfilings. Our team of experts can provide guidance on how to fill out this complicated form as well as help you meet state-specific filing regulations, all while keeping up with IRS guidelines and timelines.