How To Get 1098 T Form

Everything You Need to Know About IRS Form 990

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Tax-exempt organizations may not have an obligation to pay taxes, but these entities still have forms to fill out like anyone else. Form 990 is one of the most important of these documents. Filing this form accurately and in a timely manner with the IRS is essential for any non-profit. The following is a summary of what you need to know about Form 990 before you file, so that you can ensure you have dotted all your i's and crossed all your t's.

What is Form 990?

The IRS uses Form 990 to assess and monitor the tax exempt status of an organization. This form is primarily informational. In it, your organization should detail its activities for the previous tax year, including accomplishments and financial information. The IRS then uses these details to determine whether or not your organization still qualifies for tax exemption.

Who Has to File Form 990?

Not every tax-exempt organization has an obligation to file Form 990. If your organization is either a religious or political organization, you do not need to file this IRS form. If your company does not fall into either of these categories, consider your assets and receipts next. Only companies that have receipts greater than $200,000 or assets over $500,000 need to file Form 990.

What Goes in Form 990?

The details you need to include in your 990 include but are not limited to your financials, a list of your officers and employees, and their compensation. Your financials should include all revenues, expenses, assets and liabilities. The IRS uses all of this along with your activities of the year and plans for the future to determine the following:

You operate as a tax-exempt organization
You adhere to tax laws You are a well-run organization
Your exempt activities further your mission
You provide a valuable service to the community
Your financials and activities are of course significant, but pay special care with disclosure of your employees and their compensation.

Compensation is a critical piece of the pie as overcompensation can put your tax-exempt status at risk.

Other 990-Series Forms

If your organization does not exceed these financial limits, you still need to file a form. The simplified version of Form 990, known as the 990-EZ, is the one you should file. If you are a very small organization and have receipts totalling less than $50,000 a year, you can use the 990-N. You can only file the 990-N online, but it requires very little information and time. Private foundations need to file a 990-PF.

Whether you have to do one of these e-postcards or the more complex Form 990, make sure that you take care of this filing every year. Organizations that go more than 3 years without filing any sort of 990 risk losing their status as a tax exempt organization with the IRS.

How To Get 1098 T Form

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