Well, the most dreadful time of the year has arrived. Forms! Forms! The everlasting list of the IRS forms. Checking, double checking and triple checking, it seems to be going nowhere. You continue to search until you come face-to-face with the required documents.

Yes! It is the time to file your taxes. Wait! You are a tax-free organization but you can’t escape from the information return forms. However, you can cheer up. All you need to know is what the form is all about and why it is significant.

What Is Form 990-EZ?

Form 990-EZ is the annual information return form which is filed with the IRS by various organizations who are exempted from income tax under the Section 501(a), and certain political organizations and nonexempt charitable trusts.


Who Qualifies To File Form 990-EZ?

Organizations who are exempted from income tax under the Section 501(a) need to file the annual information return (i.e. Form 990-EZ or 990) or submit the annual electronic notice (i.e. Form 990-N Electronic Notice (e-Postcard) for the tax-exempt organizations) based on the organization’s total assets and gross receipts.

If the total assets at the end of the year are less than $500,000 and the gross receipts are less than $200,000 of an organization, then it is can file File 990-EZ online.

What Is The Due Date To E-File 990-ez?

You need to file 990-EZ within the 15th day of the 5th month when the accounting period of the organization ends. So, it means that for calendar year filers, the deadline is May 15 and if the due date falls on legal holidays or Sunday or Saturday; you need to file on the next business day.

Also, if the business is dissolved, terminated or liquidated, then you must file the return within the 15th day of the 5th month after the business was terminated, liquidated or dissolved. To get an automatic six month extension for filing Form 990-EZ, use Form 8868.

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What Are The Requirements To E-file 990-EZ?

Organizations who are filing Form 990-EZ should complete the Parts I through V of the Form 990-EZ. It even includes the required attachments and schedules. Even the Section 501(c)(3) organizations need to complete Part VI.

Now if an organization is not required to File 990-EZ online, however, choose to do so, it must file the complete return and even disclose the information needed and also the schedules. Keep in mind that submitting an incomplete Form 990-EZ is similar to late filing. Seriously, it will cost you thousands of dollars as penalties and even late fees. In some cases, it will lead to loss of exemption status.

Following are some of the guidelines that IRS prescribes to e-file 990-ez correctly - Without a proper signature, the Form 990-EZ is incomplete.

  • Recordkeeping
    The records of the organization need to be kept for as long as they are necessary for the administration of any kind of provision specified by the Internal Revenue Code. You need to keep the records supporting the item of deduction, income, and credit for about three years from the date the return is filed or due, or whichever is later.
  • Rounding Off The Whole Dollar
    The organization needs to round off the cents to whole dollars on various schedules and returns unless they are otherwise noted for a particular question.
  • Filling All Lines
    Try to make an entry (which includes even a 0 wherever it is appropriate) on all the lines which need an amount or any kind of information that has to be reported. Make sure that you don’t leave any lines blank unless it is specifically instructed to skip that particular line.
  • Reporting Proper Amounts
    There are certain lines which request information that has to be reported on other forms like Form 1099, W-2, and 990-T which are filled the organizations. Now if the organization knows that the amount which is reported on other forms is wrong, then it needs to report the correct amount or information on Form 990-EZ, along with filing the amended form for the proper amount.
  • Adding Activities And Items Related to Disregarded Joint Ventures And Entities
    The organization should report in the e-file 990-ez form all the expenses, revenues, liabilities, assets and the net assets or any kind of fund related to the disregarded entity of which the organization is the sole member in the Form 990-EZ. Here, it even includes passive investments and the organization must report the activities of joint venture or disregarded entities as its own activities in the appropriate schedules and parts of the Form 990-EZ.
  • List Of Needed Attachments And Schedules
    An organization needs to file one or more schedules A, B, C, E, G, L, N, or O, or other necessary attachments as informed in various instructions and forms.
  • Assembling Form 990-EZ, Attachments And Schedules
    Just before you File 990-EZ online, you need to assemble the package of schedules, forms and other attachments in the below-given order -
    • 1) Core forms which have all parts completed (Parts I-V, Part VI by the section 501(c)(3) organizations)
    • 2) Schedules A, B, C, E, G, L, N, and/or O, which are completed and filed in the alphabetical order
    • 3) Attachments which are completed as applicable. These consist of the name change amendment, causes, and explanations for the late filings, etc.

Correct The Previously E-filed 990-ez Returns

For correcting or amending the organization’s return of the previous year, you need to file a new return along with the required schedules. You must use the version of the Form 990-EZ which is applicable to the year that is being amended.

The amended return needs to provide all the required information which are stated in the form and instructions, not just the corrected or new information. he organization can file the amended return at any time for changing or adding information that are reported on the previously filed return for the same period.

Failure To File Penalties

As per the Section 6652(c)(1)(A), you will be charged with a penalty of $20 per day, which doesn’t exceed the lesser of the $10,000 or 5% of the gross receipts of your organization for not e-filing Form 990-EZ. An organization who have annual gross receipts more than $1,028,500 are subjected to a penalty of $100 each day if the organization continues to fail to File 990-EZ online.

Now if an organization fails to file the annual return or even submit the annual notice as needed for three consecutive years, then it will lose its tax-exempt status. So, organizations who lose their tax-exempt status will need to file IT returns and make payment for income tax, however, they might apply for reinstatement of exemption.

Can The Public View The Tax Returns?

Frankly, all the information that an organization reports on the Form 990-EZ, even the attachments and schedules must be available for public inspection. Various nonprofits make their 990S available on their websites. In addition, you can even view them in Guidestar which is an organization that provides details about nonprofits.

Why E-File 990-EZ With Fileform990ez.com?

Fileform990ez.com ensures that you can File 990-EZ online easily and generate the required Schedules by answering the form interview questions. The built-in-audit check ensures that you can analyze and review your 990-EZ form before it gets transmitted to the IRS.

Also, with Fileform990ez.com, you can easily correct and make changes to the information of an approved 990-EZ of the previous year. You can even access and manage your account from anywhere and continue from where you have left off.

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