The majority of tax-exempt organizations are required to file an annual return called a Form 990. Four different Form 990s are available for filing. The Form an organization should file depends on its financial activity.
When an organization has annual gross receipts less than or equal to $50,000, it should file this Form 990-N. The Form 990-N is submitted as an electronic postcard which can be found at www.irs.gov. Although it is not required, organizations that fit into this category have the option to file a full Form 990 or 990-EZ if they choose instead of the Form 990-N. Private foundations, supporting organizations and section 527 organizations cannot file a Form 990-N regardless of their annual activity.
Organizations with annual gross receipts less than $200,000 and total assets at the end of their tax year of less than $500,000 can file Form 990-EZ. They also have the option to file the full Form 990. Special rules apply to sponsoring organizations of donor-advised funds, Organizations that operate one or more hospital facilities, and Section 501(c)(29) nonprofit health insurance issuers; these organizations are required to file a full Form 990 regardless of the level of their receipts or assets.
Form 990 must be used when an organization has annual gross receipts greater than $200,000 or total assets at the end of its tax year of greater than or equal to $500,000.
990-PF is for all private foundations to file, regardless of their financial status.
A Few Considerations
State laws may also require charitable organizations to register and file separate annual reports. Also, if tax-exempt organizations generate unrelated business income, they may be required to file an additional Form 990 called a 990-T.
For additional information on these forms and which is the correct one for your organization to file, contact your Hawkins Ash CPAs professionals.