{"id":13224,"date":"2025-05-05T21:12:55","date_gmt":"2025-05-06T04:12:55","guid":{"rendered":"https:\/\/www.irs.com\/?p=13224"},"modified":"2025-05-06T12:21:23","modified_gmt":"2025-05-06T19:21:23","slug":"irs-form-990-ez-2","status":"publish","type":"post","link":"https:\/\/www.irs.com\/en\/form-990-ez\/","title":{"rendered":"Nonprofits With Tax Returns: What Are IRS Form 990 and Form 990-EZ Used For?"},"content":{"rendered":"<blockquote><p><b><i>There\u2019s no profit in not turning in your Form 990 or Form 990 EZ!<\/i><\/b><\/p><\/blockquote>\n<p>When it comes to keeping your organization\u2019s tax-exempt status in good standing, IRS Form 990 and Form 990-EZ are important tools for reporting financial information.<\/p>\n<p>Form 990 is a comprehensive annual information return for tax-exempt organizations while Form 990-EZ is a shorter version for smaller organizations that meet certain eligibility requirements. They look like a corporate tax return, but because they list so much information such as program service accomplishments, they can be much longer. These annual tax forms are crucial for providing the IRS and the public with an overview of your nonprofit\u2019s mission, programs, and finances.<\/p>\n<div style=\"width: 640px;\" class=\"wp-video\"><video class=\"wp-video-shortcode\" id=\"video-13224-1\" width=\"640\" height=\"360\" preload=\"metadata\" controls=\"controls\"><source type=\"video\/mp4\" src=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/Importance_of_Form_990_Compliance.mp4?_=1\" \/><a href=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/Importance_of_Form_990_Compliance.mp4\">https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/Importance_of_Form_990_Compliance.mp4<\/a><\/video><\/div>\n<p>Nonprofits need to include key information such as revenue, expenses, assets, and liabilities when completing these tax forms, along with details about their governance and activities. Filing Form 990 or Form 990-EZ on time is essential for maintaining your organization\u2019s tax-exempt status and ensuring transparency with donors and stakeholders.<\/p>\n<p>So, remember to keep these tax forms on your radar and make sure to dot your i\u2019s and cross your t\u2019s when it comes to reporting your private foundation\u2019s financial information and revenue sources.<\/p>\n<p>It\u2019s all part of keeping your nonprofit on the right track!<\/p>\n<h2><b>The Forms for Tax Returns for Organizations Exempt from Income<\/b><\/h2>\n<p>Annual tax forms for organizations exempt from income tax, such as non-profit organizations, include Form 990-EZ. This form is required to be filed by tax-exempt organizations, nonexempt charitable trusts, and <a href=\"https:\/\/www.irs.gov\/charities-non-profits\/political-organizations\" target=\"_blank\" rel=\"noopener\">section 527 political organizations<\/a>. In certain cases, organizations may be exempt from filing Form 990, such as faith-based organizations, state institutions, and subsidiaries covered under a group return.<\/p>\n<p>Additionally, these organizations may need to file employment tax forms, like Form 941, which is used to report withheld federal income tax, <a href=\"https:\/\/www.irs.com\/en\/irs-form-8919-helps-you-patch-up-social-security-and-medicare-payments\/\">social security tax, and Medicare tax<\/a> from employees\u2019 wages. It\u2019s important to stay up to date with the specific requirements for tax-exempt organizations to ensure compliance. Stay informed about any exemptions and other relevant forms that may apply to your organization.<\/p>\n<p>Don\u2019t let the tax form filing process overwhelm you. Keep in mind the exemptions available for certain organizations, and familiarize yourself with the necessary employment tax forms.<\/p>\n<p>When it comes to Form 990, it\u2019s all about sharing the right information with the IRS to stay on top of your nonprofit\u2019s filing requirements. The form includes details like revenue and expenses, program service accomplishments, compensation of key employees, and governance structure.<\/p>\n<p>Basically, Form 990 is the way you let the IRS know what your nonprofit is up to and how you\u2019re using your resources to benefit the community. This helps the IRS keep tabs on the finances and activities of nonprofit organizations, ensuring transparency and accountability.<\/p>\n<p>So, the next time you\u2019re filling out Form 990, just keep in mind that it\u2019s all about sharing the necessary info with the IRS to show them that your nonprofit is doing everything by the book. It\u2019s just one of those administrative tasks that keeps everything running smoothly and in compliance with the law. Keep up the great work, and keep those forms filed on time!<\/p>\n<h3><b>What Are the Schedules for Form 990?<\/b><\/h3>\n<p>If you\u2019re running a nonprofit and getting ready to file Form 990 or Form 990-EZ, you should know there are extra schedules you may need to include. These schedules help the IRS get a fuller picture of your organization\u2019s activities, and which ones you\u2019ll need depends on what your nonprofit has been up to during the year.<\/p>\n<p>For Form 990, there are 16 possible schedules: A, B, C, D, E, F, G, L, M, N, O, R, and S through V. Each schedule covers a different area, like compensation, lobbying, foreign activities, or financial breakdowns. It might sound like a lot, but each one has a clear purpose and only needs to be included if it applies to your nonprofit.<\/p>\n<p>If you\u2019re filing the shorter Form 990-EZ instead, you\u2019re looking at 8 schedules: A, B, C, E, G, L, N, and O. These are designed to match the simpler nature of Form 990-EZ, but they still gather similar information\u2014just in a more scaled-back format for smaller organizations.<\/p>\n<p>Here are a few of the more common schedules and what they\u2019re used for:<\/p>\n<ul>\n<li aria-level=\"1\"><strong>Schedule E<\/strong> is for schools. It\u2019s used to report income from things like endowment funds, real estate, annuities, trusts, and royalties, as well as the expenses tied to those. If your school brought in more than $5,000 from activities that don\u2019t relate to your core mission (called unrelated business income), you\u2019ll need to complete this one.<\/li>\n<li aria-level=\"1\"><strong>Schedule G<\/strong> focuses on fundraising and gaming. This schedule lets you explain how your nonprofit raises money (whether through events, raffles, or other activities) and where that money shows up on your books. Accurate reporting here matters, especially if you\u2019re applying for grants or funding, since it gives others a sense of your fundraising effectiveness.<\/li>\n<li aria-level=\"1\"><strong>Schedule L<\/strong> is all about transparency in relationships. It\u2019s where you report transactions between your nonprofit and people closely connected to it, like board members, key employees, or major donors. If you made or received any loans, or had other financial dealings with these individuals, Schedule L helps keep those relationships on the up-and-up.<\/li>\n<li aria-level=\"1\"><strong>Schedule N<\/strong> is used when a nonprofit shuts down or winds things down significantly. If your organization is dissolving, merging, or going through a big downsizing, you\u2019ll use Schedule N to report what\u2019s happening with your assets and operations. It\u2019s a way for the IRS to track how everything gets wrapped up.<\/li>\n<\/ul>\n<p>By including the right schedules, you\u2019re not only staying compliant, you\u2019re also building trust and showing that your organization is serious about transparency and accountability.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-13227 aligncenter\" src=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-shotbyrain-5072316-1024x683.jpg\" alt=\"irs form 990 ez\" width=\"640\" height=\"427\" srcset=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-shotbyrain-5072316-1024x683.jpg 1024w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-shotbyrain-5072316-300x200.jpg 300w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-shotbyrain-5072316-768x512.jpg 768w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-shotbyrain-5072316-1536x1024.jpg 1536w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-shotbyrain-5072316-2048x1365.jpg 2048w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-shotbyrain-5072316-18x12.jpg 18w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-shotbyrain-5072316-640x426.jpg 640w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<h2><b>What\u2019s the Difference Between Form 990 and Form 990-EZ?<\/b><\/h2>\n<p>If you\u2019re a nonprofit organization, then you already know the importance of filing your annual tax return using Form 990 or Form 990-EZ. But do you know the difference between the two? Let\u2019s break it down for you.<\/p>\n<p>First off, the filing requirements for Form 990-EZ are less stringent than for Form 990, which is an eight-page form. Organizations with gross receipts less than $200,000 and total assets less than $500,000 can file Form 990-EZ while those with higher numbers must file Form 990. Small community-based nonprofits or local associations may qualify for Form 990-EZ while larger, more complex organizations with higher revenue and assets would typically file Form 990. That said, the lowest threshold version is still a four-page form and not quite as EZ to fill out.<\/p>\n<p>Additionally, Form 990-EZ has fewer reporting and disclosure requirements compared to Form 990. However, both forms are important for nonprofits to accurately report their financial information to the IRS and the public.<\/p>\n<h3><b>Which Organizations Qualify to Use the 990-EZ Form?<\/b><\/h3>\n<p>If you\u2019re wondering whether your tax-exempt organization qualifies to use the 990-EZ form, here\u2019s the lowdown.<\/p>\n<p>Typically, organizations with gross receipts of less than $200,000 and total assets less than $500,000 for the tax year can use the 990-EZ form. This applies to a range of <a href=\"https:\/\/www.irs.com\/en\/tax-breaks-charity-work\/\">tax-exempt organizations including charitable<\/a>, religious, educational, scientific, literary, and certain other types of organizations.<\/p>\n<p>In some cases, filing requirements may also necessitate the attachment of certain schedules such as <a href=\"https:\/\/www.irs.gov\/charities-non-profits\/exempt-organizations-annual-reporting-requirements-form-990-schedules-a-and-b-public-charity-support-test\" target=\"_blank\" rel=\"noopener\">Schedule A for public charities<\/a>, Schedule B for Schedule of Contributors, or Schedule N for liquidation, termination, dissolution, or substantial contraction.<\/p>\n<p>So, if your organization fits the bill with gross receipts and total assets within the specified criteria, the 990-EZ form might just be the right form for you. But as always, it\u2019s best to consult with a tax professional to make sure you\u2019re on the right track.<\/p>\n<h2><b>Deadlines for Form 990<\/b><\/h2>\n<p>You must turn the form in before the 15th day of the 5th month after your accounting period\u2019s over. Does your organization follow the calendar tax year? Well, then you\u2019ll have to turn your Form 990 or Form 990-EZ in before May 15. If your organization has a tax period ending other than December 31, it\u2019s important to know the deadlines for filing Form 990 or Form 990-EZ. For organizations with a tax period ending on June 30, for example, the due date for Form 990 is November 15. If your accounting period follows a different schedule, the deadlines will vary accordingly.<\/p>\n<p>To find the specific deadlines for your organization\u2019s Form 990 or Form 990-EZ, you can check out the IRS website or <a href=\"https:\/\/www.irs.com\/en\/6-critical-questions-to-ask-a-tax-professional\/\">consult with a tax professional<\/a>. They\u2019ll be able to help you determine the exact due dates based on your organization\u2019s tax period and accounting period.<\/p>\n<p>Stay on top of your filing deadlines to avoid any penalties or fines. Remember, staying informed and proactive is the key to staying compliant with your tax obligations.<\/p>\n<h3><b>Any Penalties for Late Filing Form 990<\/b><\/h3>\n<p>So, you know that filing Form 990 on time is super important for nonprofits, right? Well, if you miss the deadline, you could be facing some hefty penalties. The penalties for late filing Form 990 vary based on your organization\u2019s gross receipts and can range from $20 to $100 per day, with a maximum penalty of $50,000.<\/p>\n<p>If you don\u2019t file Form 990 on time, it can <a href=\"https:\/\/www.501c3.org\/top-5-risks-of-fundraising-registration-non-compliance\/\" target=\"_blank\" rel=\"noopener nofollow\">result in fines and penalties for your nonprofit<\/a>. And trust me, you don\u2019t want to deal with that headache. Missing the deadline can also lead to your organization losing its tax-exempt status, which is a big deal. Consider sending your form via email or looking for a way to e-file IRS form 990 and 990-EZ.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-13226 aligncenter\" src=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-julia-m-cameron-6995247-1024x683.jpg\" alt=\"irs form 990 ez\" width=\"640\" height=\"427\" srcset=\"https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-julia-m-cameron-6995247-1024x683.jpg 1024w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-julia-m-cameron-6995247-300x200.jpg 300w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-julia-m-cameron-6995247-768x512.jpg 768w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-julia-m-cameron-6995247-1536x1024.jpg 1536w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-julia-m-cameron-6995247-2048x1365.jpg 2048w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-julia-m-cameron-6995247-18x12.jpg 18w, https:\/\/www.irs.com\/wp-content\/uploads\/2025\/05\/pexels-julia-m-cameron-6995247-640x426.jpg 640w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<h2><b>FAQ: IRS Form 990 EZ<\/b><\/h2>\n<p><b> 1. Who should file IRS Form 990-EZ?<\/b><b><br \/>\n<\/b> Form 990-EZ is made for small to mid-sized nonprofits that don\u2019t quite meet the size requirements for the full-length Form 990. If your organization brought in less than $200,000 in gross receipts during the year and has less than $500,000 in total assets, the 990-EZ is likely the right fit. It gives you a way to meet your annual IRS filing requirement without the bulk and complexity of the full version.<\/p>\n<p><b> 2. What kind of info does Form 990-EZ ask for?<\/b><b><br \/>\n<\/b> Even though it\u2019s the \u201cshort\u201d form, 990-EZ still asks for a fair amount of detail. You\u2019ll need to report your revenue and expenses, list out your major activities and accomplishments for the year, and provide information on your officers, board members, and highest-paid staff. You\u2019ll also have to include info about any fundraising activities, grants received or given, and compliance with IRS rules like lobbying restrictions and public support tests.<\/p>\n<p><b> 3. What happens if a nonprofit forgets to file Form 990-EZ?<\/b><b><br \/>\n<\/b> Not filing Form 990-EZ is a big deal. The IRS gives nonprofits three chances to get it right\u2014if you miss filing for three straight years, your tax-exempt status will be revoked automatically. That means donors can\u2019t write off donations anymore, and your group may have to start over to regain nonprofit status. Plus, the IRS can assess late penalties if you miss the deadline, which usually falls on the 15th day of the 5th month after your fiscal year ends.<\/p>\n<p><b> 4. Can Form 990-EZ be filed online?<\/b><b><br \/>\n<\/b> Yes, and in fact, the IRS encourages electronic filing for accuracy and speed. Depending on your organization\u2019s size and structure, you might be required to e-file. There are several IRS-authorized e-file providers you can use, and many of them make the process easier with built-in tools to catch errors before you hit submit. Just make sure to keep a copy of what you send in for your records.<\/p>\n<p><b> 5. Is Form 990-EZ public? Can anyone see it?<\/b><b><br \/>\n<\/b> Yep, Form 990-EZ is a public document. Once you file it, it becomes part of the public record. That means donors, journalists, watchdog groups, and anyone else can take a look at your filing. This transparency is actually one reason why it\u2019s important to take the form seriously\u2014people may judge your organization based on how you present your financials and accomplishments.<\/p>\n<p><b>6. How is Form 990-EZ different from the full Form 990 or Form 990-N?<\/b><b><br \/>\n<\/b> Think of Form 990-EZ as the middle ground. The full Form 990 is more complex and is for bigger organizations that bring in more than $200,000 in gross receipts or have over $500,000 in assets. On the other end, Form 990-N (sometimes called the e-Postcard) is for the smallest nonprofits\u2014those with gross receipts of $50,000 or less. If your group is in between, Form 990-EZ gives you a chance to report the essentials without going overboard on the paperwork.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There\u2019s no profit in not turning in your Form 990 or Form 990 EZ! When it comes to keeping your organization\u2019s tax-exempt status in good standing, IRS Form 990 and Form 990-EZ are important tools for reporting financial information. Form 990 is a comprehensive annual information return for tax-exempt organizations while Form 990-EZ is a [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":13228,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9,31,11,46,171,8],"tags":[],"class_list":["post-13224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-filing-taxes","category-tax-deductions","category-tax-forms","category-tax-relief","category-tax-tips","category-tools-forms"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts\/13224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/comments?post=13224"}],"version-history":[{"count":3,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts\/13224\/revisions"}],"predecessor-version":[{"id":13231,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts\/13224\/revisions\/13231"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/media\/13228"}],"wp:attachment":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/media?parent=13224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/categories?post=13224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/tags?post=13224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}