Discussing about the things that a non profit tax exempt organization needs to know in this financial year, just read on the blog. Even if you are a nonprofit organization, which has tax exempt and do not pay the federal taxes, you are required to file an information form with the IRS. Form 990n is used for this purpose of filing the information.
While you e-file form 990, it ensures that the nonprofit organization performs the business oriented work consistently by following the responsibilities. When the form 990 is filed by the nonprofit, it is made public so that it is known to the public, donors or other supporting people to find and evaluate about the charities organization. Hence the filing information on Form 990N must be correct and ensure to fill carefully.
Quick Recall about Form 990N
IRS Form 990n is the tax form that a nonprofit tax exempt organization needs to file with the IRS every year. This nonprofit organization includes charitable nonprofits. Through this efile form 990n , IRS and the public can find more information about the nonprofit. This form collectively have all the information about the nonprofit like the mission, events and programs conducted, financial records of the organization.
An organization can mention their mission or vision of their charity on the Form 990n and elaborate the highlights of their organization’s previous year achievements. Through this the organization can find their level of growth, a employee of the organization can know more about the organization, as a board member of the nonprofit organization can know about the members in the board and charity cash received.
These information on the Form 990, makes it more informative. Hence the filing nonprofit organization need more time and energy to fill the form 990n with relevant information . As per the recent revisions, Form 990 gets additional information like disclosure of potential conflicts of interest, payouts of staff and board members, other financial details.
Who have to file Form 990n?
- Without respect to the income, all the foundation need to file the Form 990 PF
- Tax-exempt organization having gross receipts of $200,000 or assets with the value of $500,000.
- For large nonprofits that has gross receipts of $50,000 can file Form 990 EZ or Form 990.
- For small nonprofits that has gross receipts of $50,000 or less have to file Form 990N (e-postcard) for maintaining the tax exempt status.
- Organizations that comes under tax-exempt status with the sections 501(c), 527 or 4947(a) (1) and does not come under exemptions.
Who are exempt from Form 990 Filing?
- Churches, missionary organizations, or religious schools. These are classified under Tax Guide for Churches and Religious organizations as per IRS Publication 1828.
- Group return filed by the parent group, subsidiaries of other nonprofits.
- The nonprofits that are not in the current system. For instance, if you have incorporated or unincorporated nonprofit, but don’t have the plan to apply for tax exemption from the federal income tax to the IRS.
- Initially the organization is in tax-exempt status and wants to file the IRS by 27th month end from the date of nonprofit organization incorporation , you are required to file Form 990 or Form 990 EZ or Form 990 N.
- Government Institutions or Corporations that are public.
- State institutions that offers services. For example, universities offering education to the students.
As the Form 990N is public ensure to provide correct information. This form has perks for all the donors and the grantors. Hence know the importance of the Form 990 n and efile them through Tax2efile.com.