What is a Form 990?
Most nonprofits are required to file an informational return with the IRS each year. The return is filed on a Form 990. The Form 990 gives the IRS information on the nonprofit’s activities and financial situation.
What type of Form 990 does my nonprofit need to file?
There are several types of Form 990s, including the Form 990, Form 990-PF, Form 990-EZ, Form 990-N and Form 990-T. The type of form to file depends on several factors:
• Form 990 is required if your nonprofit has gross receipts ≥ $200,000 or Total assets ≥ $500,000.
• Form 990-EZ may be filed if your nonprofit has gross receipts < $200,000 and Total assets < $500,000.
• Form 990-N may be filed if your nonprofit has gross receipts normally ≤ $50,000.
• Form 990-PF is required if your nonprofit is a private foundation.
• Form 990-T is required if your nonprofit has unrelated business income.
What are the deadlines for filing a Form 990?
The deadline for filing the Form 990 is the 15th day of the 5th month after your nonprofit’s accounting period ends. With the exception of a F990-N, extensions can be filed with the IRS which provide an additional six-month period.
How much will it cost to have our nonprofit’s Form 990 prepared?
When Taylor Roth prepares the Form 990 in conjunction with an audit or review, the fee typically varies from $1,050 to $1,500, depending on the number of schedules that are required for your nonprofit. The cost to do the Form 990 preparation is higher if we do not conduct an audit or review for the same period because more work is required to gather the information needed.
Why is the Form 990 important?
The Form 990 communicates important information to the IRS which is used to help the IRS determine if the nonprofit is conducting activities according to rules and regulations, and consistent with the tax-exempt purpose authorized by the IRS. In addition, the Form 990 is public information, and it provides donors with information to allow it to review and evaluate the organization.
We encourage our clients to consider the Form 990 as a public relations tool and to take care in presenting the information in a manner that is correct and allows your nonprofit to show its best self to outsiders. At Taylor Roth, we believe the Form 990 is a critical tool to help nonprofits tell their story, and we work with you to ensure the Form 990 presents your nonprofit in its best light.