What is IRS Tax Form 990? Who Must File Tax Exempt Return

It is mandatory for many tax-exempt units and organizations to file the IRS tax Form 990N annually. This Form is also called IRS 990 e-Postcard and it is basically an informational tax Form. To be brief, this Form offers the IRS a complete overview of the activities of an organization along with detailed governance and financial information about the organization. This Form also includes a specific section where the organization details or outlines its accomplishments in the last year for justifying the maintenance of its tax-exempt status. The IRS collects this information for making sure that the organizations continue qualifying for their tax exemption post the status is granted.


Organizations that Need to File Tax Form 990

The organizations that need to file tax Form 990 are the tax-exempt organizations having gross receipts of a minimum of $200,000 or assets with a worth of a minimum of $500,000. These organizations need to file the IRS tax Form 990 annually without fail. Certain organizations like religious organizations, churches, and political organizations are exempted from filing IRS 990N e-Postcard on an annual basis.

Information Provided in the Form

Form 990 needs a particular organization to put in the details of its significant activities and its main mission or objective. It is also necessary for the organization to disclose all important financial details regarding expenses, liabilities, assets, and revenues. The Internal Revenue Service makes it a point to ensure that a particular organization possesses the worth to maintain its tax-exempt status. This is the reason why the IRS requires complete details on the different activities or the products and services provided by an organization. An important section of Form 990 covers information on the governance of the organization and specifically asks for the names of the directors, officers, normal employees, and highly remunerated employees of the organization. These are officials involved in the management team of the organization.

Attachments to the Form

Part IV of Form 990 offers a detailed checklist of various supporting documents which might be needed as per the answers provided to the list of different questions. Certain tax-exempt organizations need to file Schedule B or Schedule of Contributors listing the contributions that it receives annually. Organizations might also complete Schedule C reporting political activities of the organization. There are other documents including Schedule D for providing detailed financial statements, Schedule F for reporting the level of activity of the organization outside the US, and Schedule G describing the fundraising activities of the organization.

Alternatives that can be used in place of Form 990

Form 990EZ which is the short form of the Form 990 version can be used by tax-exempt units with gross receipts of $200,000 or less. Private foundations need to file Form 990PF and black lung trusts need to file Form 990 BL. If you have any queries while E-filing the 990N Form with us, Contact our US customer support team via support@tax2efile.com (24/7 available) or 703.229.0326 or live chat and get answered queries.