Your Guide to 990s: What are they and which do you need to file?

Posted by WebbeJeppe Category: Bookkeeping

Versions of Form 990

An organization manager’s participation is due to reasonable cause if the manager has exercised responsibility on behalf of the organization with ordinary business care and prudence. The excess benefit for substantial contributors and parties related to Bookkeeping for Nonprofits: Best Practices, Tips, Resources, FAQs those contributors includes the amount of the grant, loan, compensation, or similar payment. The following is a list of special instructions for the form and schedules regarding the reporting of a joint venture of which the organization is a member.

Member income doesn’t include interest income, gains from asset or security sales, or dividends from another cooperative (unless that cooperative is also a member). The statement must be in an easily recognizable format whether the solicitation is made in written or printed form, by television or radio, or by telephone. An excess benefit transaction can have serious implications for the disqualified person that entered into the transaction with the organization, any organization managers that knowingly approved of the transaction, and the organization itself. See Appendix G. Section 4958 Excess Benefit Transactions, later, for a discussion of section 4958; Schedule L (Form 990), Transactions With Interested Persons, Part I; and Form 4720, Schedule I, regarding reporting of excess benefit transactions. Complete lines 25a and 25b only if the organization is a section 501(c)(3), 501(c)(4), or 501(c)(29) organization.

Which Form 990 Should My Nonprofit File?

Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons, has been a historical form since tax year 2021. Section 501(c)(21) trusts can no longer file Form 990-BL and will file Form 990 (or submit Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required To File Form 990 or 990-EZ, if eligible) to meet their annual filing obligations under section 6033. Some section 501(c)(21) trusts may also be required to file Form 6069, Return of Certain Excise Taxes on Mine Operators, Black Lung Trusts, and Other Persons Under Sections 4951, 4952, and 4953. Form 990-EZ – For organizations with gross receipts totaling less than $200,000 and total assets not exceeding $500,000, Form 990-EZ is used. These sections contain “yes” or “no” questions about the financial and other activities of the organization, as well as sections in which you must list assets and liabilities; names, titles, and compensation amounts of those who work for your organization; and information about accomplishments and contractors.

Whether the management company or the exempt organization is the employer will be determined by the facts and circumstances. The organization must use Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to transmit to the IRS paper Forms 1099, 1098, 5498, and W-2G, which are information returns reporting certain amounts paid or received by the organization.

Understanding the Different Versions of Form 990

The organization can answer “Yes” if it emailed all of its governing body members a link to a password-protected website on which the entire Form 990 can be viewed, and noted in the email that the Form 990 is available for review on that site. However, answer “No” if the organization merely informed its governing body members that a copy of the Form 990 is available upon request. Answer “No” if the organization redacted or removed any information from the copy of its final Form 990 that it provided to its governing body members before filing the form. For example, answer “No” if the organization, at the request of a donor, redacted the name and address of that donor from the copy of its Schedule B (Form 990), that it provided to its governing body members. Under those circumstances, the organization may explain on Schedule O (Form 990) why it answered “No” to line 11a. The organization may leave line 2b blank if it didn’t report any employees on line 2a.

A corporation or partnership is domestic if created or organized in the United States or under the law of the United States or of any state or possession. A trust is domestic if a court within the United States or a U.S. possession is able to exercise primary supervision over the administration of the trust, and one or more U.S. persons (or persons in possessions of the United States) have the authority to control all substantial decisions of the trust. Include autographs, sports memorabilia, dolls, stamps, coins, books (other than books and publications reported on line 4 of Schedule M (Form990)), gems, and jewelry (other than costume jewelry reportable on line 5 of Schedule M (Form 990)). Contributions received in the form of cash, checks, money orders, credit card charges, wire transfers, and other transfers and deposits to a cash account of the organization. A reimbursement or other expense allowance arrangement that satisfies the requirements of section 62(c) by meeting the requirements of business connection, substantiation, and returning amounts in excess of substantiated expenses.

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The organization must report the sales revenue regardless of whether the sales activity is an exempt function of the organization or an unrelated trade or business. Use column (ii) to report sales of all other types of investments (such as real estate, royalty interests, or partnership interests) and all other non-inventory assets (such as program-related investments and fixed assets used by the organization in its related and unrelated activities). A person who purchases a ticket is really purchasing the dinner for $160 and making a contribution of $240. The contribution of $240, which is the difference between the buyer’s payment and the retail value of the dinner, would be reported on line 1c and again on line 8a (within parentheses). The revenue received ($160 retail value of the dinner) would be reported in the right-hand column on line 8a.

Versions of Form 990

In the case of a text message contribution, the donor’s phone bill meets the section 170(f)(17) recordkeeping requirement of a reliable written record if it shows the name of the donee organization and the date and amount of contribution. See the instructions for Form 990, Part V, lines 6a and 6b, for rules on public notice of nondeductibility when soliciting nondeductible contributions. Go to to view, download, or print all of the forms, instructions, and publications you may need. On, you can get up-to-date information on current events and changes in tax law. The IRS can refute the presumption of reasonableness only if it develops sufficient contrary evidence to rebut the probative value of the comparability data relied upon by the authorized body. This provision gives taxpayers added protection if they faithfully find and use contemporaneous persuasive comparability data when they provide the benefits.