Which 990 Is Right for My Organization?
Knowing which of the four 990 forms apply to your organization is important when you’re filing taxes. In this guide, we will break down which organizations file each 990 form to help you determine which option best suits your needs.
Types of 990 Forms
Almost all tax-exempt organizations will need to file an annual return, but the form you use depends on your financial activity. In total, there are four types of 990 forms:
- 990-N
- 990-EZ
- 990
- 990-PF
To determine which form you need to file, you must understand the basics of each one and the types of organizations that file them.
Form 990-N
If your organization has less than or equal to $50,000 in gross receipts, you will file the form 990-N. Your gross receipts are the total amounts of income you received from all sources throughout your accounting period. You will not subtract any costs or expenses from this number.
For your gross receipts to be considered within the $50,000 or less category, your organization should satisfy one of the following requirements:
- It has existed for at most one year and has received an exact amount of pledges from donors amounting to $75,000 during the organization’s first tax year.
- It has existed between the past one and three years and earned an average gross receipt of not more than $60,000 recorded during each of its first two tax years.
- It is three years old or younger and has gross receipts averaging at most $50,000 for the immediate former three tax years, including the current tax year.
It’s important to check if your organization is permitted to file form 990-N even if it records gross receipts of $50,000 or less. Several organizations in this income bracket are not permitted to file the 990-N form.
Form 990-N is entirely electronic, with no paper counterparts. It’s also the shortest of the five Form 990s and is mostly required to be filled by smaller nonprofits.
Form 990-EZ
Form 990-EZ is filled by organizations exempted from income tax, and you’re welcome to file it if:
- Your organization has less than $200,000 in gross receipts.
- Your business’ total assets are less than $500,000.
- Your organization is recognized by the IRS under section 501(a) as exempt from income tax.
Tax-exempt organizations, section 527 political organizations and nonexempt charitable trusts often file 990-EZ.
You may also be able to file a standard 990 form in this instance, so it is beneficial to check all requirements for 990-EZ.
Form 990
Like Form 990-EZ, tax-exempt organizations can file Form 990. Most organizations, including educational, charity, section 527 political and scientific organizations, qualify here. If your organization has gross receipts equal to or greater than $200,000 and total assets equal to or greater than $500,000, you’re eligible to file Form 990.
Certain organizations are exempt from filing Form 990, even if they meet these requirements. These include:
- Churches.
- Religious organizations.
- Political organizations are not covered in section 527.
Your Form 990 will disclose your organization’s revenue, expenses, liabilities, and assets. It will also describe your organization’s mission and activities.
Form 990-PF
Form 990-PF is a private foundation’s annual information return that private organizations must file regardless of their financial statuses. A closer breakdown of organizations required to file Form 990-PF includes:
- Taxable private foundations under section 6033(d).
- Exempt private foundations under sections 6033 (a, b and c).
- Private organizations making a termination under section 507(b).
- Organizations that answer to private organization status whose private organization status applications are still pending by the time of filing Form 990-PF.
- Organizations claiming private foundation status who haven’t applied for exempt status and whose application isn’t yet registered under section 508(a) for legal recognition for exemption.
This form will include information about your private foundation’s:
- Financial activities
- Assets
- Rewarded grants
- Trustees and officers
Filling Form 990-PF is a little more complicated than most of the other forms. It requires careful scrutiny and understanding of the instructions for accurate filling.
Contact Marshall Jones for Tax Planning and Preparation Services
While you may understand the basics of 990 forms, it’s crucial to understand each form’s instructions and exceptions. Consulting with a certified public accountant (CPA) at Marshall Jones will help you ensure that your organization meets annual reporting requirements.
We’ve served Atlanta organizations with integrity and professionalism for over 30 years and boast remarkable experience and expertise. Our tax planning and preparation services will help you save time and money, and our certified public accountants and advisors are dedicated to serving you.
If you’re looking for exceptional tax planning and preparation services in Atlanta, please contact the Marshall Jones team today to schedule your first appointment.
