How to File a Tax-Exempt Tax Return

Filing taxes for a tax-exempt organization

The Internal Revenue Service requires most tax-exempt organizations to file a return or notice with the IRS each year. If gross receipts are equal to or less than $25,000, the organization may file Form 990-N. If gross receipts are less than $500,000 and total assets are less than $1.25 million, the organization can file Form 990-EZ. If the organization has more than $500,000 in gross receipts and more than $1.25 million in total assets, the firm must file Form 990. Any organization may file Form 990, except for private foundations, which must file Form 990-PF.

Things You'll Need

• Form 990-EZ

Instructions

1. Complete Form 990-EZ Part I. This part focuses on the tax-exempt organization's revenue, expenses and changes in net assets.

2. Fill out Part II. Part II is a shortened balance sheet. This is for assets and liabilities.

3. Move on to Part III. This section lists the accomplishments of the organization. The accomplishments must be related to the organization's tax-exempt purpose.

4. Fill out Part IV. This part is a list of officers, directors, trustees and key employees. The form requires their addresses, titles, hours worked, compensation, contributions to benefit plans and if they had expense accounts.

5. Complete Part V. Part V focuses on general information regarding the tax-exempt entity. This information includes whether there were any changes in the organization, who is the organization's accountant and political contributions by the organization.

6. Fill out Part VI only if the organization is under Section 501(c)3 as an organization or a Section 4947(a)1 nonexempt charitable trust.

References

• Internal Revenue Service: Form 990-EZ
• IRS: Form 990
• IRS: Tax Information for Charities & Other Non-Profits
• IRS: Exempt Organizations: Status Revoked for Not Filing Annual Return or Notice
• IRS: Annual Exempt Organization Return: Who Must File