Quick answer: Most tax exempt organizations must file a Form 990 return every year, and the version depends on size: the 990-N for gross receipts normally $50,000 or less, the 990-EZ for receipts under $200,000 and assets under $500,000, and the full Form 990 above that. For a calendar year organization, the return is due May 15.
Most tax exempt organizations do not pay income tax, but they still file an annual return with the IRS. Which version you file depends mostly on your size. Here is how to tell which one applies.
Which version do you file?
| Form | Generally for organizations with |
|---|---|
| 990-N (electronic postcard) | Gross receipts normally $50,000 or less |
| 990-EZ | Gross receipts under $200,000 and total assets under $500,000 |
| Form 990 | Gross receipts of $200,000 or more, or total assets of $500,000 or more |
| 990-PF | Private foundations, regardless of size |
Churches and certain church related organizations are generally not required to file, though some choose to.
When it is due
The return is due on the 15th day of the 5th month after your fiscal year ends. For a calendar year organization, that is May 15. When the date falls on a weekend or holiday, it moves to the next business day.
You can request an automatic six month extension with Form 8868. The 990-N cannot be extended.
What happens if you do not file
- Late returns can trigger daily penalties, which grow with the size of the organization
- An organization that does not file for three consecutive years automatically loses its tax exempt status
- Getting exemption back means reapplying, which takes time and money
What the full Form 990 asks for
- Revenue by source and expenses by program, management and fundraising
- Your mission, programs and accomplishments
- Board members, officers and key employee pay
- Governance policies, such as conflict of interest and whistleblower policies
The full Form 990 is public, and donors and grantors read it. Accurate nonprofit bookkeeping all year makes it far easier to prepare.
Virginia filings to remember
Many Virginia nonprofits that ask the public for donations also register with the Virginia Department of Agriculture and Consumer Services under the charitable solicitation law, and renew each year. Our guide to starting a nonprofit in Virginia covers the details.
→Related guideNonprofit Bookkeeping: Fund Accounting, Chart of Accounts and a Monthly ChecklistAccurate books all year are what make Form 990 straightforward, and this guide shows how to keep them.Form 990 FAQs
Can a small nonprofit file Form 990-EZ instead of the 990-N?
Yes. An organization eligible for the 990-N may choose to file the 990-EZ or full Form 990 instead. Some do this to give donors and grantors more detail.
Does Form 990 have to be filed electronically?
Yes. The full Form 990 and Form 990-EZ must be filed electronically for current tax years, and the 990-N is only available as an online filing.
Is a nonprofit’s Form 990 public?
Yes. Form 990 and 990-EZ returns are public, except for the names and addresses of donors. Organizations must provide copies of their last three annual returns when asked.
Do nonprofits ever pay income tax?
They can. An exempt organization with $1,000 or more of gross income from an unrelated business generally must file Form 990-T and may owe tax on that income.
Does a private foundation file a 990-N or 990-EZ?
No. Private foundations file Form 990-PF every year, no matter how small they are.
We prepare Form 990s
We prepare 990-N, 990-EZ and Form 990 returns as part of our nonprofit accounting service for organizations across Northern Virginia, DC and Maryland.
This article is general information and not tax advice for your situation. Tax rules change, so talk with a qualified professional before making decisions.
