Hello, nonprofit friends! Reminder: if your nonprofit’s fiscal year is the same as the calendar year, your 990 tax form is due to be filed with the IRS by next Wednesday, May 15.
Every year, U.S. nonprofits are required to file a Form 990 with the IRS. There are three versions of this form, the 990-N (e-Postcard), 990-EZ, and 990. How do you know which one you should file?
Form 990-N (e-Postcard) can generally be filed if your nonprofit has gross receipts totaling $50,000 or less. This form requires very basic information and can be filed online on the IRS Website.
Form 990-EZ is filed by nonprofits with gross receipts totaling between $50,000 and $250,000 and total assets under $500,000.
Form 990 (sometimes called the “990 full”) is filed by nonprofits with gross receipts over $250,000. You will likely need support from a CPA to complete this form.
You can find more information about all 990 tax forms on the IRS website.
Due date:
990s are due by the 15th day of the 5th month after the last day of a nonprofit’s fiscal year. In other words, nonprofits with a fiscal year that corresponds with the calendar year ending December 31 (most common) need to file their 990 by May 15.
If your nonprofit does not follow the calendar year, common other due dates are November 15 (for fiscal years ending June 30) and February 15 (for fiscal years ending September 30).
Penalties for late submissions:
If Form 990-N is not received by the due date, your organization will receive a reminder to file, and should complete the filing ASAP.Late filings of the 990-EZ and 990 however, can result in more serious penalties, including fines and penalties, and even including “auto-revocation” of tax-exempt status for organizations who have failed to file their 990s for three years in a row.
Reinstatement of tax-exempt status after this penalty is possible, but causes a great deal of avoidable distress and delay.
While state and federal requirements can feel like belaboring and tedious tasks, akin to weeding out invasives in your garden, it’s important to keep your filings up-to-date so you can avoid legal fees to get your organization back on track, and focus on the amazing work of your nonprofit that keeps your community blooming.
