A 990 Return of Organization Exempt is an annual information return that almost all tax-exempt organizations file with the Internal Revenue Service (IRS). Also known as Form 990, it provides an organization’s mission, program, and financial summary. This return upholds transparency, accountability, and compliance with the federal tax laws governing organization’s 501(c) exemptions under the Internal Revenue Code.
Purpose of the 990 Return
The IRS objective for Form 990 is to ensure that a nonprofit organization is still qualified for tax exemption. It assists potential charitable donors and the general public in understanding how a nonprofit organization allocates its resources and how effectively it operates. These documents can be accessed by the public which assists in transparency by revealing how an organization governs itself, how much its leaders are paid, and what value it produces in the community.
Nonprofit organizations maintain public trust and comply with the law by filing Form 990 showing that they still operate for the public benefit and not for the private advantage.
Types of 990 Returns
The IRS provides several versions of Form 990 depending on the organization’s size and financial activity:
- Form 990-N (e-Postcard): For nonprofits with gross receipts of $50,000 or less
- Form 990-EZ: For organizations with gross receipts under $200,000 and total assets under $500,000
- Form 990: For larger organizations exceeding those thresholds
- Form 990-PF: For all private foundations, regardless of income level
Choosing the correct form is crucial to ensure compliance and avoid IRS rejection.
Filing Deadlines and Extensions
Form 990 is due on the 15th day of the 5th month after the end of the organization’s fiscal year. If your fiscal year ends on December 31, your filing deadline is May 15 of the following year. Organizations needing more time can file Form 8868 to request for 6 months automatic extension before the due date.
Consequences of Not Filing
Not filing Form 990 three times in a row results in an automatic loss of the organization’s tax-exempt status. Also, filing late may accrue daily fines, losing your exemption, and potentially paying federal income tax as well as damaging your reputation.
The Bottom Line
The 990 Return of Organization Exempt is more than an IRS requirement—it’s a public declaration of integrity and purpose. Timely and accurate filing keeps nonprofits compliant, transparent, and trusted by donors, regulators, and the communities they serve.
Dimov Tax presents expert assistance to nonprofit organizations. Reach out to us today for professional support.