How to complete form 990

IRS Form 990 is an annual information return filed by most nonprofits and tax-exempt organizations. This includes organizations under Section 501(a), and certain political organizations and nonexempt charitable trusts.

1. How to complete Form 990 A simple guide for Nonprofits and Exempt organizations

2. What is Nonprofit tax return Form 990? IRS Form 990 is an annual information return filed by most nonprofits and tax-exempt organizations. This includes organizations under Section 501(a) , and certain political organizations and nonexempt charitable trusts . The form provides the IRS with information on the organization's activities, governance, and detailed financial information. If an organization's gross receipts are greater than or equal to $200,000 or the total assets are greater than or equal to $500,000 at the end of the tax year, then it must file Form 990.

3. When is the due date to file 990 tax returns? Nonprofits & Tax-Exempt organizations must file 990 Form by the 15th day of the 5th month after the end of the organization’s accounting period. If the organizations follow the calendar tax year , then the return must be filed on or before May 17, 2021 . Note - If the due date falls on a Saturday, Sunday or any legal holiday, file the form on the next business day.

4. Basic information required to file IRS Form 990 The following information is required to complete the Form 990 return Name of your Organization, EIN, address, and telephone number. Organization's Gross Receipts Check the appropriate field on Box B for any Address change, Name change, Initial return (if the organization is filing a Form 990 for the first time), final return/terminated, Amended return, or Application pending. Organization Section (501(c)(3), 501(c), 4947(a)(1) or 527) for tax-exempt status Organization Type (Corporation, Trust, Association, Other), and the year of formation Group exemption number (Mandatory for central and parent organizations who are filing for their subordinate organizations)

5. Form 990 part I - Summary Part I of Form 990 consists of 4 subsections to complete Activities & Governance Revenue Expenses Net Assets or Fund Balances To complete this part, the organization must all of the required information in each subsubsection. For more details, https://www.expresstaxexempt.com/form-990/form-990-instructions/

6. Form 990 Part II - Signature block To complete Part II of Form 990, the Nonprofit tax return 990 must be signed by the current president, vice president, treasurer, assistant treasurer, chief accounting officer, or other corporate officer (such as a tax officer) who is authorized to sign as of the date the return is filed. If the organization has a Paid Preparer complete the return on their behalf, the preparer must sign the return, list their taxpayer identification number (PTIN), and fill in the other details like firm's Name, address, EIN. The paid preparer must: Sign the return in the space provided for the preparer's signature; Enter the preparer information, including the preparer's PTIN; and Give a copy of the return to the organization

7. Form 990 Part III - Statement of Program Service Accomplishments Part III of Form 990 requires information on the organization’s Program Service Accomplishments for the tax year. Provide a brief explanation about your organization’s mission in this part. If the organization undertook any new significant program services prior to the end of the tax year or stopped conducting, or made significant changes in how it conducts the program services, provide the required information and explain it briefly using 990 Schedule O , Supplemental Information . Also, describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses.

8. Form 990 Part IV - Checklist of Required Schedules Part IV of Form 990 consists of a series of Yes or No questions that need to be answered based on the various activities the filing organization was involved in. Based on the answers provided, the organization may be required to attach additional Schedules and Statements along with the Nonprofit 990 return. Note - Some organizations may need to attach all 16 990 Schedules based on the answers it provided on Part IV, lines 1 to 38 of Form 990.

9. Form 990 Part V - Statements Regarding Other IRS Filings and Tax Compliance Part V, lines 1 to 16 of Form 990 requires information about IRS Filings. To complete this part, provide information regarding various activities conducted by the organization on IRS Forms 1096, W-2G , W-3, 990-T, 8886-T, 8282, 4720. Enter the value, if the organization receives any funds, pay premiums, directly or indirectly, on a personal benefit contract, qualified intellectual property. Also, enter the values of gross income from members, shareholders, or other sources. Note - Some questions in this part pertain to other IRS forms which ExpressTaxExempt do not Support!

10. Form 990 Part VI Governance, Management, and Disclosure Part VI of Form 990 consists of 3 subsections to be completed Section A.Governing Body and Management - In this section, the organization must provide the details of voting members, members or stockholders, and about governing body members. Section B. Policies - This section requests information about policies not required by the Internal Revenue Code Section C. Disclosure - In this section, list the states with which a copy of Form 990 is required to be filed, even if the organization hasn't yet filed Form 990 with that state.

11. Form 990 Part VII - Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors Part VII of Form 990 consists of 2 subsections to be completed Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees This section requires information about the employees of the organization. This includes officers, directors, trustees, key employees, and other highly compensated employees.

12. Cont. Enter the following details for each employee (a) Name and title (b) Average hours per week (list any hours for related organizations below dotted line) (c) Position (do not check more than one box, unless person is both an officer and a director/trustee) (d) Reportable compensation from the organization (W-2/1099-MISC) (e) Reportable compensation from related organizations (W-2/1099-MISC) (f) Estimated amount of other compensation from the organization and related organizations

13. Cont. Section B. Independent Contractors In this section, enter the five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization’s tax year. Also, enter the total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization .

14. Form 990 Part VIII - Statement of Revenue Part VIII of Form 990 consists of 4 subsections Contributions, Gifts, Grants and Other Similar Amounts Program Service Revenue Other Revenue Miscellaneous Revenue To complete this part, enter the total revenue, unrelated business revenue from Federated campaigns, Membership dues, Fundraising events, Related organizations, Government grants (contributions), all other contributions that the organization received . Also, enter the program service revenues, and other revenues such as Investment income, Income from investment of tax-exempt bond proceeds, Gross rents, Rental income. Also provide information about miscellaneous revenue.

15. Form 990 Part IX - Statement of Functional Expenses Part IX of Form 990 requires information about the organization’s functional expenses To complete this part, enter the value of total expenses, Program service expenses, Management and general expenses, Fundraising expenses for grants & other assistance, Benefits paid to or for members, Other employee benefits, Payroll taxes, Fees for services, travel, occupancy, interest, royalties, occupancy, advertising & promotion, and more. Note - Section 501(c)(3) and 501(c)(4) organizations must complete all columns of Part IX. All other organizations must complete only column (A).

16. Form 990 Part X - Balance Sheet Part X of Form 990 is a balance sheet that requires information from the organization from the beginning of the tax year to the end. The balance sheet depicts the financial position of an organization during its tax year . The balance sheet includes three main sections: Assets Liabilities Net Assets or Fund balance Organizations must provide details related to the above subsections for the beginning of the tax year until to the end.

17. Form 990 Part XI - Reconciliation of Net Assets Part XI of Form 990 is about the Reconciliation of Net Assets . Reconciled items are used to determine whether the net asset balance in the financial statements matches the net asset balance in the Nonprofit Form 990. In this part, enter the total revenue, expenses, net assets, or fund balances at the beginning of the year to reconcile the Net Assets . Also check the box in the heading of Part XI if you need to explain any information pertaining to this part in Schedule O , Supplementary Information .

18. Form 990 Part XII - Financial Statements and Reporting Part XII requires information about financial statements and reporting used in Nonprofit tax Form 990 . To complete this part, e nter the accounting method used by the organization to prepare their Form 990, and verify whether the organization’s financial statements compiled, reviewed, or audited by an independent accountant. Also check the box in the heading of Part XII if you need to explain any information pertaining to this part in Schedule O , Supplementary Information .

19. How to complete Form 990 with ExpressTaxExempt With ExpressTaxExempt, you can easily e-file Form 990 ! Just follow the simple steps below: Step 1: Search the organization's EIN Step 2: Choose the tax year for which the 990 return must be filed Step 3: Provide all of the required information about the organization Step 4: Review the form and transmit it to the IRS

20. Form 990 schedules When filing IRS Form 990 , the organization may be required to attach various Schedules based on the activities it conducted during the tax year. There are 16 Schedules associated with Form 990 that may need to be attached by the filing organization based on the activities it participated in: Schedule A - Public Charity Status and Public Support Schedule B - Schedule of Contributors Schedule C - Political Campaign and Lobbying Activities Schedule D - Supplemental Financial Statements Schedule E - Schools Schedule F - Statement of Activities Outside the United States Schedule G - Supplemental Information Regarding Fundraising or Gaming Activities

21. Cont. Schedule H - Hospitals Schedule I - Grants and Other Assistance to Organizations, Governments and Individuals in the U.S. Schedule J - Compensation Information Schedule K - Supplemental Information on Tax Exempt Bonds Schedule L - Transactions with Interested Persons Schedule M - Noncash Contributions Schedule N - Liquidation, Termination, Dissolution, or Significant Disposition of Assets Schedule O - Supplemental Information Schedule R - Related Organizations and Unrelated Partnerships To know more about 990 schedules in details , click here .

22. IRS mandated e-filing of Nonprofit Form 990 The IRS has mandated the electronic filing of Form 990 for nonprofit and tax-exempt organizations. The Taxpayer First Act , enacted July 1, requires tax-exempt organizations to file Form 990 and related forms electronically. For example, organization's with a tax year beginning after July 2019 must file their 990 returns electronically. E-filing your 990 return with the IRS will save you time and ensure that your return is processed quickly and efficiently! Get started with ExpressTaxExempt , and IRS-authorized e-filing provider, and e-file your 990 return!

23. ExpressTaxExempt is the tax-exempt e-filing solution you need! ExpressTaxExempt is an IRS authorized e-file provider that thousands of nonprofit organizations trust to file their tax returns with the IRS. Benefits of filing 990 series forms with ExpressTaxExempt Supports both interview-based and form-based filing style Supports all 16 990 Schedules for FREE Supports internal audit check feature Import Gifts & Contributions data quickly with our Bulk Upload option Instant notifications about the filing status Re-transmit rejected returns for free Copy Information feature to copy data from prior year returns Excellent customer support by phone, email, or live chat

24. Contact us ExpressTaxExempt has a dedicated, live customer support team that filers can contact if they ever need help. Our dedicated US based support team is available to assist you on Monday-Friday, from 9 AM-6 PM EST by phone, email, and live chat.

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