It is tax season, and the goal of this episode is to help you get ready to file the correct 990 for your nonprofit organization.
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Disclaimer: The CNN Podcast, it’s Host, nor representatives are tax professionals, or experts in the law. Please contact the IRS at 800-829-4933 for the most up-to-date information.
Which 990 tax form should I file?
There are three versions of tax form 990, for nonprofit organizations to file – 990, 990 EZ, and 990 N.
Below, you will read the description of each form 990, and learn which tax form 990 your nonprofit organization should file.
Status and form to file
990 N – Your nonprofit organization should file this tax form if:
Your nonprofit organization had gross receipts normally ≤ $50,000
Note: Organizations eligible to file the e-Postcard may choose to file a full return
990 EZ – Your nonprofit organization should file this tax form if:
Your nonprofit organization had gross receipts < $200,000, and Total assets < $500,000 990-EZPDF or 990 – This is the correct tax form for your nonprofit organization if:
990 – Your nonprofit organization should file this form if:
Your nonprofit organization had gross receipts ≥ $200,000, or total assets ≥ $500,000.
How do I file Form 990-N aka e-Postcard?
Use the Form 990-N Electronic Filing system (e-Postcard) to electronically submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990EZ.
Beginning August 1, 2022, smaller charities that are eligible and choose to file Form 990-N, Electronic Notice for Tax-Exempt Organizations (e-Postcard), must sign into the IRS modernized authentication platform.
Filing Deadline – When is the 990 tax form deadline for your nonprofit organization?
Form 990 is due on the 15th day of the 5th month following the end of the organization’s taxable year. For organizations on a calendar year, the Form 990 is due on May 15th of the following year.
What is a fiscal year?
A fiscal year is a 12-month accounting period that a business uses for financial and tax reporting purposes. A fiscal year is also known as a financial year. A fiscal year can be different to a calendar year – it doesn’t need to start on January 1 and end on December 31.
What is the cost to file a 990 tax form?
The cost to file the correct 990 tax form for your nonprofit organization, will vary, sometimes greatly, depending on a few key factors:
- Accounting and tax preparation – The accounting and tax preparation may be done by different people or agencies, incurring separate fees.
- How you file – Do you want to file your 990 online, using a tax platform (think of Turbo Tax for personal tax filing).
Which 990 tax form are you filing? It is FREE to file and e-Postcard, which is also known as an Information Return.
Note: It is FREE to file Form 8868 (request for extension)
There are so many Tax Preparers who can file the 990 tax form for your nonprofit organization. There are none listed here because, in full transparency, I haven’t filed the 990 N for my nonprofit organization, LifeChangers, Inc. yet. I wanted to share the information I learned, when searching the IRS website, to get ready to file our our e-Postcard.
To make sure I did not make a mistake in sharing this info with you, I copied these instructions directly from the IRS website:
- Sign in with their existing IRS username: Users with an active IRS username have the option to access the Form 990-N submission page using their active IRS credentials
- Sign in with their existing ID.me account: Users that have an ID.me account to access other IRS online services or from a state or federal agency can sign in using their existing ID.me account.
- Create a new ID.me account: Users that don’t have an active IRS username credential must register and sign in with ID.me. ID.me account creation requires an email address and multi-factor authentication. Form 990-N filers who have an existing IRS username and register for an ID.me account must use the same email address.
More important filing information:
Note: Form 990-N must be completed and filed electronically. There is no paper form available.
- Form 990-N must be completed and filed electronically. There is no paper form.
- Do not use a smartphone or tablet to file your Form 990-N.
- Use the Form 990-N Electronic Filing System (e-Postcard) User GuidePDF while registering and filing.
See Annual Electronic Filing Requirement for Small Exempt Organizations for more information on Form.
Annual Exempt Organization Returns, Notices and Schedules – https://www.irs.gov/charities-non-profits/annual-exempt-organization-returns-notices-and-schedules
The IRS Business Agents are available Monday-Friday 7am-7pm. Their phone number is 800-829-4933
Form 990 Resources and Tools – https://www.irs.gov/charities-non-profits/form-990-resources-and-tools
Whew… this was such an in-depth topic, but definitely important to discuss and get the correct information to share!
Hopefully, you found this episode to be helpful, and you are able to add this info to your toolkit.
Do you have questions or want to share any info you know on the topic? Please write your comment or question below.