Instructions for Form 990 Return of Organization Exempt From Income Tax 2023 Internal Revenue Service

Report any amounts for lobbying services provided by attorneys on line 11d. The above is an example of a one-step allocation that shows how to report the allocation in Part IX. This reporting method would actually be more useful to avoid multiple-step allocations involving two or more cost centers.

Who Needs to File Form 990 and When?

Additionally, the IRS generally can’t disclose the names and addresses of contributors. The year in which the organization was created or formed under applicable state law (if a corporation, the year of incorporation). Income from an unrelated trade or business as defined in section 513. Unless otherwise provided, includes the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, and the U.S.

Consequences of Not Filing or Late Filing

It also doesn’t include hospitals that are operated by entities organized as separate legal entities from the organization that are treated as corporations for federal tax purposes. Enter the end-of-year unpaid balance of secured and unsecured loans made how to read a 990 to or received from officers, directors, trustees, and key employees (as defined in Part IV, earlier). For example, if the organization borrowed $1,000 from one officer and loaned $500 to another, none of which has been repaid, report $1,500 on line 38b.

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List persons in the order described under Order of reporting, earlier. For purposes of Form 990, a current key employee is an employee of the organization (other than an officer, director, or trustee) who meets all three of the following tests, applied in the following order. The central organization (parent organization) named in a group exemption letter is required to have general supervision or control over its subordinate organizations as a condition of the group exemption.

See the instructions for Form 990, Part V, lines 6a and 6b, for rules on public notice of nondeductibility when soliciting nondeductible contributions. Employers who maintain pension, profit-sharing, or other funded deferred compensation plans are generally required to file Form 5500. This requirement applies whether or not the plan is qualified under the Internal Revenue Code and whether or not a deduction is claimed for the current tax year. Used to report social security, Medicare, and income taxes withheld by an employer and social security and Medicare taxes paid by an employer.

Enter the organization’s gross income from sales of inventory items, less returns and allowances. Sales of inventory items reportable on line 10a are sales of items that are donated to the organization, that the organization makes to sell to others, or that it buys for resale. Sales of inventory don’t, however, include the sale of goods related to a fundraising event, which must be reported on line 8. Sales of investments on which the organization expected to profit by appreciation and sale aren’t reported here. The organization must report net income from fundraising events as unrelated business revenue (column (C)) or as revenue excluded from tax under section 512, 513, or 514 (column (D)). A payment by a governmental agency to an organization to provide job training and placement for disabled individuals is a contribution reported on line 1e.

• While CPAs prepare Forms 990 because of the financial reporting requirements, they can add value to their preparation services by ensuring that the form’s narrative sections tell the not-for-profit’s story of how it is fulfilling its mission.
• Be certain to indicate in item A of Form 990, page 1, the date the organization’s fiscal year began in 2023 and the date the fiscal year ended in 2024.
• Complete this table for the five highest compensated independent contractors that received more than $100,000 in compensation for services, whether professional or other services, from the organization.
• An “organization manager” is any officer, director, or trustee of an applicable tax-exempt organization, or any individual having powers or responsibilities similar to officers, directors, or trustees of the organization, regardless of title.
• If the organization answers “Yes,” then complete and attach Schedule L (Form 990), Part I.
• The organization must round off cents to whole dollars on the returns and schedules, unless otherwise noted for particular questions.

If it answers “No” on line 14b, it should explain on Schedule O (Form 990) why it didn’t file Form 720. The organization is required to answer “Yes” on line 29 if it received during the year more than $25,000 in fair market value (FMV) of donations, gifts, grants, or other contributions of property other than cash, regardless of the manner received (such as for use in a charity auction). Answer “Yes” on line 18 if the sum of the amounts reported on lines 1c and 8a of Form 990, Part VIII, exceeds $15,000. An organization that answers “No” should consider whether to complete Schedule G (Form 990) in order to report its fundraising activities or gaming activities for state or other reporting purposes. See the instructions for Schedule D (Form 990), Part V, for the definitions of these types of endowment funds. All organizations must describe their accomplishments for each of their three largest program services, as measured by total expenses incurred (not including donated services or the donated use of materials, equipment, or facilities).

Answer “Yes” whether the activity was conducted directly or indirectly through a disregarded entity or a joint venture or other arrangement treated as a partnership for federal income tax purposes and in which the organization is an owner. For each program service reported on lines 4a–4c, section 501(c)(3) and 501(c)(4) organizations must enter total expenses included on Part IX, line 25, column (B), and total grants and allocations (if any) included within such total expenses that were reported on Part IX, lines 1–3, column (B). Enter the number of volunteers, full-time and part-time, including volunteer members of the organization’s governing body, who provided volunteer services to the organization during the reporting year. Organizations that don’t keep track of this information in their books and records or report this information elsewhere (such as in annual reports or grant proposals) can provide a reasonable estimate, and can use any reasonable basis for determining this estimate. Organizations can, but aren’t required to, provide an explanation on Schedule O (Form 990) of how this number was determined, the number of hours those volunteers served during the tax year, and the types of services or benefits provided by the organization’s volunteers. Many states that accept Form 990 in place of their own forms require that all amounts be reported based on the accrual method of accounting.

Instructions for Form 990-EZ (

Tax-exempt organizations that are required to file electronically but don’t are deemed to have failed to file the return. A public charity described in section 170(b)(1)(A)(iv), 170(b)(1)(A)(vi), or 509(a)(2) that isn’t within its initial 5 years of existence should first complete Part II or III of Schedule A (Form 990) to ensure that it continues to qualify as a public charity for the tax year. If it fails to qualify as a public charity, then it must file Form 990-PF rather than Form 990 or 990-EZ, and check the box for “Initial return of a former public charity” on page 1 of Form 990-PF. A controlling organization of one or more controlled entities, as described in section 512(b)(13), must file Form 990 and not Form 990-EZ if it is required to file an annual information return for the year and if there was any transfer of funds between the controlling organization and any controlled entity during the year. For purposes of Form 990 reporting, the term “section 501(c)(3)” includes organizations exempt under sections 501(e) and (f) (cooperative service organizations), 501(j) (amateur sports organizations), 501(k) (childcare organizations), and 501(n) (charitable risk pools).

Instructions for Form 990-EZ – Additional Material

If the organization receives its mail in care of a third party (such as an accountant or an attorney), enter “C/O” on the street address line, followed by the third party’s name and street address or P.O. To facilitate the processing of your return, don’t password protect or encrypt PDF attachments. Password protecting or encrypting a PDF file that is attached to an e-filed return prevents the IRS from opening the attachment.