IRS Form 990 EZ Instructions for 2023: Simplified Guide for Nonprofit Tax Filing

The IRS requires you to provide the following information about your organization.

• A - Start and end dates of the corresponding tax year
• B - Purpose of the form (check if applicable)
  • Address change
  • Name change
  • Initial return
  • Final return/terminated
  • Amended return
  • Application pending
• C - Name and address of the organization
• D - Employer Identification Number (EIN)
• E - Telephone number
• F - Group Exemption Number
• G - Accounting method
  • Cash
  • Accrual
• H - Check if the organization isn’t required to attach
  Form 990 Schedule B
• I - Website
• J - Tax-exempt status (check the applicable section)
  • 501(c)(3)
  • 501(c)() - mention the number
  • 4947(a)(1)
  • 527
• K - Form of organization
  • Corporation
  • Trust
  • Association
  • Other
• L - Gross receipts

This part is split into three subparts.

• Revenue
• Expenses
• Net Assets

Revenue (Lines 1-9):

Here, you must report your organization’s revenue yielded from various sources.

• Line 1 - 8:
  • Enter the revenue generated from contributions, gifts, program service revenue, membership dues and assessments, investment income, gross income or loss from sales of assets and inventories, net income or loss from gaming and fundraising events, and other revenues.
• Line 9:
  • Enter the Total Revenue by adding lines 1, 2, 3, 4, 5c, 6d, 7c, and 8.

Expenses (Lines 10 - 17):

Report all the expenses made by your organization during the corresponding
tax year.

• Line 10 - 16:
  • Enter the expenses incurred on grants, benefits provided to members, salaries of your organization’s key personnel, payments made to independent contractors, rent, maintenance costs, the amount spent for publications, and other expenses.
• Line 17:
  • Enter the Total Expenses by adding lines 10
    through 16.

Net Assets (Lines 18 - 21):

Report the value of your organization’s net assets.

• Lines 18 - 20:
  • Enter the value of net assets or fund balances at the beginning of the tax year. If there are any changes in the value between the beginning and end of the tax year, mention it and provide an explanation on Schedule O.
• Line 21:
  • Add the values from lines 18 through 20 to determine the net assets or fund balances at the end of
    the tax year.

This section requires you to report the required values of assets and liabilities at both the beginning and end of the tax year column.

• Lines 22 - 24:
  • Enter the cash, savings, investments, properties owned by the organization, and other assets.
• Lines 25 and 26:
  • Enter the value of Total Assets and Liabilities.
• Line 27:
  • Enter the value of net assets or fund balances that should match the value of Line 21.

Program service accomplishments are activities conducted by the organization that serve the organization's exempt purpose. At the top of this part, mention your organization’s primary exempt purpose.

• Lines 28 - 30:
  • Here, you need to describe three of your organization's three largest program service accomplishments during the corresponding
    tax year.
• Line 31:
  • If your organization conducts any other program services, mention them here and provide a description of them on Schedule O.
• Line 32:
  • Enter the total expenses incurred for program service accomplishments.

This section includes a table where you need to provide information about individuals who served as Officers, Directors, Trustees, and Key Employees at any time during the tax year.

The details required are:

• Name and title
• Average hours per week
• Compensation (Forms W-2/1099-NEC), if not paid,
  enter -0-
• Health benefits, contributions to employee benefit plans, and deferred compensation
• Amount of other compensation

This part contains a series of “Yes” or “No” questions about your organization's activities.

• Lines 33 - 38:

  Include any significant activities not previously reported to the IRS and any major changes to the organizing documents.

  Additionally, provide details on:

  • Unrelated business income of $1,000 or more
  • Liquidation, dissolution, termination, or significant disposition of net assets
  • Political expenditures
  • 1120-POL filing requirements

  If the organization has borrowed or made loans to any personnel, indicate “Yes” and attach Form 990
  Schedule L.

• Lines 39 and 40:
  • Section 501(c)(7) organizations: Must report initiation fees, capital contributions, and gross receipts.
  • Section 501(c)(3) organizations: Must report any excise tax imposed during the year under sections 4911, 4912, and 4955.
  • Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations: Must indicate if they have engaged in an excess benefit transaction with a disqualified person and provide details on any excise taxes imposed and reimbursed by the organization.
• Lines 41 - 46:
  • Mention the state filing requirements where the copy of this form is submitted.
  • Specify where the organization’s books and records are maintained. Report any foreign financial accounts held by the organization.
  • Section 4947(a)(1) nonexempt charitable trusts must include the amount of tax-exempt interest earned.
  • Indicate if the organization has a controlled entity and is engaged in transactions with it under section 512(b)(13). If “Yes,” attach Form 990 Schedule R.
  • Mention if the organization has been involved in any political campaign activities. If “Yes,” attach Form 990 Schedule C.

As the name indicates, this part needs to be completed only by
Section 501(c)(3) organizations.

• Lines 47 - 49: (“Yes or “No” questions)
  • Indicate if your organization is involved in any lobbying activities.
  • If your organization is a school described in section 170(b)(1)(A)(ii), attach Form 990 Schedule E.
  • Mention if any transfers were made to an exempt non-charitable related organization.
• Line 50:
  • Provide details for the five highest compensated employees in your organization (excluding officers, directors, trustees, and key employees) who received more than $100,000 in compensation.
  • This information should be presented in a tabular format
    (columns a-e) similar
    to Part IV.
  • Also, indicate the total number of employees who were paid over $100,000
    in line f.
• Line 51:
  • Provide the details of the five highest compensated independent contractors in your organization who received more than $100,000 as compensation.
  • The required details are the name and business address of each independent contractor(a), type of service (b), compensation (c), and the total number of independent contractors receiving compensation of more than $100,000.
• Line 52:
  • Describe your organization’s Form 990 Schedule A requirement.

The president, vice president, treasurer, assistant treasurer, chief accounting officer, or other corporate officers who are authorized must sign the return.

If IRS Form 990-EZ is prepared by a paid preparer, their details can be provided.