Form 990, the annual information return that must generally be filed by 501(c)(3) public charities (other than churches and certain church-related organizations), is a comprehensive public document used by the IRS to assess an organization’s compliance with the law and is available to the public. Small nonprofits (those with annual revenues less than $200,000 and assets less than $500,000) are permitted to file an abbreviated version of Form 990, called Form 990-EZ, and very small organizations (those with annual revenues less than $50,000) must file a simple notice with the IRS electronically each year.
The IRS Form 990 provides a wealth of financial and program information to enable all stakeholders of rhe Organization and the others to measure a nonprofit’s performance. Additionally, 990 tax forms for nonprofit organizations are posted for public view on the internet. These 990 forms are the most widely used tools for evaluating tax-exempt organizations.
The preparation of Forms 990, 990-N, 990-EZ, 990-PF, and 990-T is important, not only as financial documents, but also as a means of communicating an organization’s mission and accomplishments to the public.
In its current state, Form 990 is a 16-page form that requires an estimated 211 hours per year for activities related to its completion (according to the IRS). As many as 15 additional schedules may be required to be included with Form 990, depending on the specific nature of the filing organization’s activities, some of which require dozens of additional hours to complete, according to the IRS.
The Form 990 is a far more complex tax return, particularly since the IRS completely revised the form in 2008. The IRS now essentially requires that nonprofits and associations adopt certain policies and make far more disclosures than ever.
If your nonprofit organization needs help preparing form 990, contact Fontana CPAs today by calling 727-799-9533 and asking for Eric Fontana. If you'd prefer, you can also send an email directly to either Eric or Todd in our office. We look forward to working with you!