IRS Form 990 Filing Instructions
Instructions to complete Form 990, Return of Organization Exempt From Income Tax
Under section 3101 of P. L. 116-25, for a tax year beginning on or after July 2, 2019, IRS mandates the filing of Form 990 electronically for Nonprofit Organizations. New reporting standard for net assets on
Form 990.
What is Form 990?
Form 990 is an information return filed annually by nonprofits to report information on their tax-exempt activities, financial details and other information to the IRS.
Who must file Form 990?
Form 990 must be filed by tax-exempt organizations described under section 501(a). Also, organizations with gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000 at the end of the tax year must file
Form 990.
Check with the Form 990 filing Instructions to complete accurately.
E-file 990 NowWhen to file Form 990?
Nonprofits & Tax-Exempt Organizations must file Form 990 by the 15th day of the 5th month after the end of the tax year. For organizations following Calendar Tax year . Find your 990 due date
If the regular due date falls on a Saturday, Sunday, or legal holiday, file by the next business day.
Form 990 Schedules
Organizations that file Form 990 may be required to complete and attach the required schedules based on the information provided on the return. These 990 schedules are generally used by the organization to provide additional information to the IRS regarding certain details of the company.
There are a total of 16 schedules that are applicable for Form 990:
Schedule A
Organizations described under section 501(c)(3), section 4947(a)(1) charitable trusts that aren’t considered as private foundations and organizations that come under sections 501(e), 501(f), 501(j), 501(k), or 501(n) will be required to complete and attach Schedule A along with their Form 990 to provide information about the organization’s public charity status and public support.
Schedule B
Schedule B, Schedule of Contributors is attached by organizations that file Form 990 to provide the IRS with information about contributions, grants, bequests, devices, and gifts of money or property.
Schedule C
Section 501(c)(3) organizations, section 527 political organizations, and other organizations that have been involved in political and lobbying activities for the tax year have to complete and attach Schedule C along with the Form 990.
Schedule D
Schedule D, Supplemental Financial Statements is used by an organization that files Form 990 to report information on donor-advised funds, conservation easements, certain art and museum collections, escrow accounts and custodial arrangements, endowment funds, and supplemental financial information.
Schedule E
Organizations that function as private schools are required to complete and attach Schedule E, Schools along with their Form 990 return.
Schedule F
Schedule F, Statement of Activities Outside the United States is attached by organizations that file 990 to report activities conducted by them outside the United States at any time during the organization's tax year.
Schedule G
Schedule G must be attached by the tax-exempt organizations along with the Form 990 to report about the professional fundraising services, fundraising events, and gaming events conducted during the tax year.
Schedule H
Hospital organizations that file Form 990 must file and attach Schedule H, Hospitals to report information on various activities and policies of hospital facilities and other non-hospital health care facilities.
Schedule I
Schedule I is used by an organization to provide information with the IRS on various grants and assistance made by them (filing organization) to other organizations, governments, and individuals in the United States during the organization's tax year.
Schedule J
Schedule J, Compensation Information must be attached by an organization that files Form 990 to report compensation information for certain officers, directors, individual trustees, key employees, and highest compensated employees, and certain compensation practices followed in the organization.
Schedule K
Schedule K, Supplemental Information on Tax-Exempt Bonds is completed and attached by tax-exempt organizations to report information on their outstanding liabilities associated with tax-exempt bonds. The organization is required to report all types of tax-exempt bonds which benefits them.
Schedule L
Schedule L is used by an organization to provide the IRS with information on certain financial transactions or arrangements that occurred between an organization and a disqualified person under section 4958 or other interested persons.
Schedule M
Schedule M, Noncash Contributions is used by organizations filing Form 990 return to report information of the types of noncash contributions received during the tax year along with certain information regarding those contributions.
Schedule N
Organizations that are either going out of business or disposing of more than 25 per cent of their net assets through a contraction, sale, exchange, or other disposition must complete and attach Schedule N along with its annual information return.
Schedule O
Organizations generally use Schedule O, Supplemental Information if they have to provide the IRS with detailed and narrative information about the form and also to give answers to specific questions stated in the form.
Schedule R
Schedule R is used by an organization that files Form 990 to provide information with the IRS on related organizations, the transactions made with those related organizations, and certain unrelated partnerships through which they conduct significant activities.
Form 990 Schedules
Organizations that file Form 990 may be required to complete and attach the required schedules based on the information provided on the return. These 990 schedules are generally used by the organization to provide additional information to the IRS regarding certain details of the company.
There are a total of 16 schedules that are applicable for Form 990:
Schedule A
Organizations described under section 501(c)(3), section 4947(a)(1) charitable trusts that aren’t considered as private foundations and organizations that come under sections 501(e), 501(f), 501(j), 501(k), or 501(n) will be required to complete and attach Schedule A along with their Form 990to provide information about the organization’s public charity status and public support.
Schedule B
Schedule B, Schedule of Contributors is attached by organizations that file Form 990 to provide the IRS with information about contributions, grants, bequests, devices, and gifts of money or property.
Schedule C
Section 501(c)(3) organizations, section 527 political organizations, and other organizations that have been involved in political and lobbying activities for the tax year have to complete and attach Schedule C along with the Form 990.
Schedule D
Schedule D, Supplemental Financial Statements is used by an organization that files Form 990 to report information on donor-advised funds, conservation easements, certain art and museum collections, escrow accounts and custodial arrangements, endowment funds, and supplemental financial information.
Schedule E
Organizations that function as private schools are required to complete and attach Schedule E, Schools along with their Form 990 return.
Schedule F
Schedule F, Statement of Activities Outside the United States is attached by organizations that file 990 to report activities conducted by them outside the United States at any time during the organization's tax year.
Schedule G
Schedule G must be attached by the tax-exempt organizations along with the Form 990 to report about the professional fundraising services, fundraising events, and gaming events conducted during the tax year.
Schedule H
Hospital organizations that file Form 990 must file and attach Schedule H, Hospitals to report information on various activities and policies of hospital facilities and other non-hospital health care facilities.
Schedule I
Schedule I is used by an organization to provide information with the IRS on various grants and assistance made by them (filing organization) to other organizations, governments, and individuals in the United States during the organization's tax year.
Schedule J
Schedule J, Compensation Information must be attached by an organization that files Form 990 to report compensation information for certain officers, directors, individual trustees, key employees, and highest compensated employees, and certain compensation practices followed in the organization.
Schedule K
Schedule K, Supplemental Information on Tax-Exempt Bonds is completed and attached by tax-exempt organizations to report information on their outstanding liabilities associated with tax-exempt bonds. The organization is required to report all types of tax-exempt bonds which benefits them.
Schedule L
Schedule L is used by an organization to provide the IRS with information on certain financial transactions or arrangements that occurred between an organization and a disqualified person under section 4958 or other interested persons.
Schedule M
Schedule M, Noncash Contributions is used by organizations filing Form 990 return to report information of the types of noncash contributions received during the tax year along with certain information regarding those contributions.
Schedule N
Organizations that are either going out of business or disposing of more than 25 per cent of their net assets through a contraction, sale, exchange, or other disposition must complete and attach Schedule N along with its annual information return.
Schedule O
Organizations generally use Schedule O, Supplemental Information if they have to provide the IRS with detailed and narrative information about the form and also to give answers to specific questions stated in the form.
Schedule R
Schedule R is used by an organization that files Form 990 to provide information with the IRS on related organizations, the transactions made with those related organizations, and certain unrelated partnerships through which they conduct significant activities.
Instructions to complete Form 990
Form 990 consists of a total of twelve parts. Here’s a short description of each part
Part I - Summary
The part I of Form 990 is categorized into four different sections. The first section is Activities and Governance in which the organization must report about its mission and information on recently conducted activities. The next is the Revenue section under which the organization must report the revenues earned for the tax year. The third is the Expenses section; here the organization must report the expenses incurred during the tax year. The last section is the Net Assets or Fund Balances in which the organization must state the difference in the total assets and total liabilities.
Part II - Signature Block
To transmit a completed return with the IRS, Part II of the return (Form 990) must be signed by the current president, vice president, treasurer, assistant treasurer, chief accounting officer, or other corporate officers (such as a tax officer) who is authorized to sign on behalf of the organization as of the date the return is filed.
Part III - Statement of Program Service Accomplishments
In Part III, the organization must report its program service accomplishments. These are activities conducted by the organization to accomplish its tax-exempt purpose. Also, the organization must provide information on the top three Program Services conducted in terms of the highest revenue
Part IV - Checklist of Required Schedules
Organizations filing Form 990 may be required to complete Part IV, Checklist of Required Schedules which depends on the information provided on the information return. Part IV consists of various schedules that are filed with the return to provide additional information about the company.
Part V - Statements Regarding Other IRS Filings and Tax Compliance
Part V of Form 990 is used by certain organizations to report information on various statements and returns that are related to other IRS filing and the tax compliance information for those returns.
Part VI - Governance, Management, and Disclosure
Every organization filing form 990 is required to complete Part VI which is categorized into three sections. The first section is Governing Body and Management in which the details of voting members of the governing body must be reported. The next section in the part is Policies in which information regarding certain policies or practices adopted by the organization must be reported. Under the Disclosure section, provide information on the governing documents and details of the person who maintains the organization's books and records.
Part VII - Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Part VII of the form is used to list the compensation made to all the current or former officers, directors, trustees, key employees, highest compensated employees, and current independent contractors of the organization for the tax year.
Part VIII - Statement of Revenue
Revenue generated by the organization in the form of various contributions, grants, and program service activities must be reported under Part VIII, Statement of Revenue. If the organization has revenue generated from various other sources, the details of that other revenue must also be reported.
Part IX - Statement of Functional Expenses
Part IX is used to report the various statements of functional expenses made by the organization for the tax year. The organizations described under Section 501(c)(3) and 501(c)(4) are required to complete all the columns of this part. All other organizations must complete column (A). While completing this section, the organization can use its normal accounting method.
Part X - Balance Sheet
Part X, Balance sheet is used to report the total calculated amount of the assets, liabilities and Net Assets gained during the organization’s tax year. Every organization filing Form 990 is required to complete this Part as no substitute balance sheet will be accepted by the IRS. If there’s any additional information that needs to be reported under this part, provide that information in Schedule O, Supplemental Information and attach it along with Form 990.
Part XI - Reconciliation of Net Assets
In the part, the total value of revenue, expenses and the net assets at the beginning of the tax year must be reported. If the organization needs to report changes in net assets for the current year, Schedule O must be attached along with Form 990 and an explanation about those changes must be provided in the schedule.
Part XII - Financial Statements and Reporting
Part XII must be used to provide information on the organization's accounting method and other financial information related to the organization. In case of any additional reporting, Schedule O along with Form 990 must be attached to provide the information.
Visit https://www.expresstaxexempt.com/form-990/form-990-instructions/ to learn more about Form 990 instructions.
Instructions to complete Form 990
Form 990 consists of a total of twelve parts. Here’s a short description of each part
Part I - Summary
The part I of Form 990 is categorized into four different sections. The first section is Activities and Governance in which the organization must report about its mission and information on recently conducted activities. The next is the Revenue section under which the organization must report the revenues earned for the tax year. The third is the Expenses section; here the organization must report the expenses incurred during the tax year. The last section is the Net Assets or Fund Balances in which the organization must state the difference in the total assets and total liabilities.
Part II - Signature Block
To transmit a completed return with the IRS, Part II of the return (Form 990) must be signed by the current president, vice president, treasurer, assistant treasurer, chief accounting officer, or other corporate officers (such as a tax officer) who is authorized to sign on behalf of the organization as of the date the return is filed.
Part III - Statement of Program Service Accomplishments
In Part III, the organization must report its program service accomplishments. These are activities conducted by the organization to accomplish its tax-exempt purpose. Also, the organization must provide information on the top three Program Services conducted in terms of the highest revenue
Part IV - Checklist of Required Schedules
Organizations filing Form 990 may be required to complete Part IV, Checklist of Required Schedules which depends on the information provided on the information return. Part IV consists of various schedules that are filed with the return to provide additional information about the company.
Part V - Statements Regarding Other IRS Filings and Tax Compliance
Part V of Form 990 is used by certain organizations to report information on various statements and returns that are related to other IRS filing and the tax compliance information for those returns.
Part VI - Governance, Management, and Disclosure
Every organization filing form 990 is required to complete Part VI which is categorized into three sections. The first section is Governing Body and Management in which the details of voting members of the governing body must be reported. The next section in the part is Policies in which information regarding certain policies or practices adopted by the organization must be reported. Under the Disclosure section, provide information on the governing documents and details of the person who maintains the organization's books and records.
Part VII - Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Part VII of the form is used to list the compensation made to all the current or former officers, directors, trustees, key employees, highest compensated employees, and current independent contractors of the organization for the tax year.
Part VIII - Statement of Revenue
Revenue generated by the organization in the form of various contributions, grants, and program service activities must be reported under Part VIII, Statement of Revenue. If the organization has revenue generated from various other sources, the details of that other revenue must also be reported.
Part IX - Statement of Functional Expenses
Part IX is used to report the various statements of functional expenses made by the organization for the tax year. The organizations described under Section 501(c)(3) and 501(c)(4) are required to complete all the columns of this part. All other organizations must complete column (A). While completing this section, the organization can use its normal accounting method.
Part X - Balance Sheet
Part X, Balance sheet is used to report the total calculated amount of the assets, liabilities and Net Assets gained during the organization’s tax year. Every organization filing Form 990 is required to complete this Part as no substitute balance sheet will be accepted by the IRS. If there’s any additional information that needs to be reported under this part, provide that information in Schedule O, Supplemental Information and attach it along with Form 990.
Part XI - Reconciliation of Net Assets
In the part, the total value of revenue, expenses and the net assets at the beginning of the tax year must be reported. If the organization needs to report changes in net assets for the current year, Schedule O must be attached along with Form 990 and an explanation about those changes must be provided in the schedule.
Part XII - Financial Statements and Reporting
Part XII must be used to provide information on the organization's accounting method and other financial information related to the organization. In case of any additional reporting, Schedule O along with Form 990 must be attached to provide the information.
Visit https://www.expresstaxexempt.com/form-990/form-990-instructions/ to learn more about Form 990 instructions.
Instructions on how to file Form 990 electronically
E-Filing
If your organization is filing Form 990 for a tax year beginning on or after July 2, 2019, then the return must be filed electronically
E-filing Form 990 is the quickest and easiest method as it takes less time to process the returns. Also, you will be in the know about the status of your filings in an instant.
Also, e-filing with an IRS-authorized e-file service provider such as form990instructions.com is more secure when compared to the paper filing.
E-file 990 NowForm990instructions.com - A Cloud Based Software to E-file Form 990
Form990instructions.com provides a simple guide on how to file Form 990 electronically. The advantage of filing electronically is that you get access to exclusive support through which you can clarify any queries when you e-file your information return
Here are some of the Form 990 filing features with form990instructions.com:
- You can import all organization related information using the bulk upload templates.
- You can request your board members or other key officers from your organization to review and e-sign your completed 990 return before submitting it with the IRS.
- In case if your return is rejected by the IRS for any reason, the support team will assist you in correcting the errors. When that is done, you can retransmit the return for free of charge.
- And if you have noticed any error on your Form 990 after transmitting it to the IRS, you can always amend it.
Instructions on How to file Form 990 using our Cloud-Based Software
- Step 1: Signup for an account
- Step 2: Enter the organization's basic details
- Step 3: Complete Form/Interview based section
- Step 4: Review the form
- Step 5: Transmit to the IRS
