What is IRS Form 990-EZ?
IRS Form 990-EZ is a short form for annual information returns and is required to be filed with the IRS by nonprofit organizations to be exempt from income tax. Form 990-EZ can be filed by nonprofit organizations, non-exempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033.
" If an organization has gross receipts less than $200,000 and total assets at the end of the year are less than $500,000, then the organization is required to file Form 990-EZ, instead of filing Form 990."
Unlike other IRS forms, the completed Form 990-EZ is required by the IRS and the filing organization to be made available to the public after being filed. Therefore, it is important to not include private information such as a Social Security Number on an IRS 990-EZ. Documents subject to disclosure include schedules and attachments filed with the form.
IRS 990-EZ FORM DEADLINE
After the organization's accounting period ends, a IRS form 990-EZ must be filed within the 15th day of the 5th month. If the organization was liquidated, dissolved, or terminated, the return must be filed by the 15th of the 5th month after the date of liquidation, dissolution, or termination. If the organization changes its accounting period, it must file a Form 990-EZ for the short period resulting from the change.
Note: If the deadlne falls on a Saturday, Sunday, or federal holiday, the next business day is considered the deadline.
IRS 990-EZ FORM AMENDED RETURN
The organization can file an amended return of Form 990 EZ at any time to change or add to the information reported on a previously filed return for the same period. From the date of filing or from the date the original return was due, the organization must make the amended return available for inspection for the next three years.
To amend the organization's return for any year, file a new return including any required schedules. Use the version of Form 990-EZ applicable to the year being amended. The amended return of Form 990-EZ must provide all the information required by the Form and instructions not just the new or corrected information.
IRS 990-EZ FORM LATE FILING PENALTIES
The IRS asseses penalties for failure to file in three ways.
- Penalties Against an Organization
Unless the organization can show that the late filing was due to a reasonable cause, a penalty of $20 per day, not to exceed $10,000 or 5% of the gross receipts of the organization for the year, can be charged when a return is filed late. -
Penalties Against the Responsible Person
If an organization does not file a complete return or submits incorrect information, the IRS will send the organization a letter including a fixed time to fulfill these requirements. After that period expires, the person failing to comply will be charged a penalty of $10 per day. For any one return, the maximum penalty on all persons for failures will not exceed $5,000. -
Automatic Revocation of Tax Exempt Status
If an organization fails to file the required annual return or submit an annual notice for three consecutive years, its tax-exempt status is automatically revoked.
IRS 990 EZ - Extension Form 8868
Exempt organizations that require more time to file their information return can apply for Extension Form 8868 which is an application for an extension of time to file tax returns. IRS Form 8868 provides a 6-month automatic extension of time to file tax-exempt returns.
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