Which form to file: 990-N or 990-EZ?

 

 When making a decision on which form to file with the IRS, you need to take into consideration the following:

1) Gross revenues of the organization for the past year;
2) The amount of the Assets;
3) Future plans for development of the non-profit organization.

 

 

Form 990-N is the simplest form for filing. It’s an e-postcard that the organizations file with the IRS. In order to file 990-N, your nonprofit organization should meet the following requirements:
• The organization must be a 501c3 approved organization, or it must be already included in the IRS database for filing. Please be aware of the fact that some newly approved 501c3 organizations are not automatically included in the IRS database. Sometimes it takes up to 3 months for the IRS database to be updated;

• The gross revenues of the organization for the past year must be normally equal to or less than $50,000;

• 990-N form can be only filed for the current reporting year and 2 prior years (for example: f990-N can be filed for 2019, 2018 and 2017).

 

Form 990-N can only be submitted online, there is no paper option for filing.

 

Advantages of filing 990-N: Less complicated way to report the activities and to stay in compliance with the IRS especially if your organization didn’t raise any funds for the past year.

Disadvantages: f990-N doesn’t bring any information to potential donors on the activities/financials/accomplishments of the organization.  Organizations which provide grants often request a form 990-EZ from the 501c3 which is seeking the grant.
*California Nonprofit organizations are required to file an additional tax return.

 

  

Form 990-EZ is a more complicated form, which has detailed information about your organization and its activities for the previous year of operation. Your nonprofit organization qualifies for f990-EZ, if:

• The gross revenues of the organization for the past year are less than $200,000;
• The assets of the organization are less than $500,000;

 

The information you need to include in form 990-EZ is as follows:
• General Information – name of the organization, EIN, Board of Directors (names, positions, working hours per week, reported remuneration), mailing addresses, contact phone number, e-mail & website;

• Financial Information: itemized list of the gross revenues and expenses; a balance sheet, Board of Directors’ contributions; a list of persons/organizations that contributed more than $5,000 for the past year (names, mailing addresses);

• Organization’s exempt purpose and accomplishments; and other information based on the activities.

 

Advantages of filing 990-EZ: if the organization plans on applying for grants, this is the right form to file. It brings lots of information about the activities; other advantage is that some states require you to file form 990-EZ to register for solicitation registrations.

Disadvantages: A complicated form to prepare and likely requires professional help and expertise.
It’s up to your organization’s Board of Directors to decide whether to file f990-N or f990-EZ. Floyd Green CPA advises you never to skip a year, and always to file your informational tax returns on time to keep your organization in compliance. Also, make sure that you keep records of the submitted tax returns, which should be available for public inspection.

 

 

Our clients comments:

 

 

“Thank you for your willingness to help us! You and your staff are very professional and I appreciate the time you spent answering the questions we had.”

 

 

“This company is phenomenal! Please use them! They made this process painless and they proved themselves trustworthy. Thank you FGFS!”

 

 

“Professional, efficient and responsive are a few words that come to mind when I think about the services that I received from Floyd Green Financial Services. The team handled both state and federal filings. I received all approved documents in less than 30 days. During that time, if I had any questions, I received an immediate response. I look forward to utilizing their services in the future!”

 

 

More testimonials are available on the following link: http://floydgreencpa.com/index.php/testimonies.

 

For more information, please visit our website: www.floydgreencpa.com, e-mail us at: This email address is being protected from spambots. You need JavaScript enabled to view it., or give us a call at: 770-457-2550 to speak with any of our associates.