Form 990-EZ - Everything the nonprofits should know

The following organizations with gross receipts less than $200,000 and total assets less than $500,000 must file a Form 990-EZ return.

• The organizations that are exempt from income tax under section 501(a)
• Section 4947(a)(1) nonexempt charitable trusts (if they aren’t treated as private foundations)
• Section 527 political organizations

• The organizations must file the 990-EZ by the 15th day of the 5th month after the end of their tax year.
• If your organization operates under a Calendar Tax Year (which means the tax year ends on December 31), you must file IRS Form 990-EZ on or before
  May 15.

The following are the sections in Form 990-EZ that the organizations should fill out:

• Part I - Revenue, Expenses, and Changes in Net Assets or Fund Balances
• Part II - Balance Sheets
• Part III - Statement of Program Service Accomplishments
• Part IV - List of Officers, Directors, Trustees, and Key Employees
• Part V - Other Information
• Part VI - Section 501(c)(3) Organizations Only

The organizations that file 990-EZ form may have to provide additional information through various Schedules.

There are 8 Schedules available for Form 990-EZ that may need to be attached by the organizations based on their purpose and activities.

• Schedule A - Public Charity Status and Public Support
• Schedule B - Schedule of Contributors
• Schedule C - Political Campaign and Lobbying Activities
• Schedule E - Schools
• Schedule G - Supplemental Information
• Schedule L - Transactions with Interested Persons
• Schedule N - Liquidation, Termination, Dissolution, or Significant Disposition of Assets
• Schedule O - Supplemental Information to Form 990

The organizations must be subjected to penalties if they haven’t provided a valid reason for late filing.

• The penalty would be $20 / day, not to exceed the lesser of $12,000 or 5% of the gross receipts of the organization for the year.
• The organizations with annual gross receipts exceeding $1,208,500 are subject to a penalty of $120 / day with a maximum penalty of $60,000 / return or 5% of the gross receipts of the organization for the year.
• The penalty applies on each day after the due date that the return isn't filed.

Click here to know more about Form 990-EZ Penalties.

The organizations can extend the 990-EZ filing deadline by filing the extension
Form 8868.

By filing Form 8868, the organization can get an automatic 6-Month
filing extension.

Note: The IRS requires no explanation to file tax extension Form 8868.

For tax years beginning after July 1, 2019, the IRS mandated the electronic filing of Form 990-EZ. Therefore, the organizations should file Form 990-EZ electronically.

To make your filing process trouble-free, all you need is a dependable e-file provider. You don’t have to spend more time finding such a provider. Because as we said earlier, ExpressTaxExempt is already here for you!

• Two Different Filing Methods

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