Form 990

The following tests use a special definition of gross receipts for purposes of determining whether these organizations are exempt for a particular tax year. For purposes of Schedule K (Form 990), Supplemental Information on Tax-Exempt Bonds, use by the organization or another 501(c)(3) organization Whai is Law Firm Accounting: Best practice in an unrelated trade or business. Private business use also generally includes any use by a nongovernmental person, other than a section 501(c)(3) organization, unless otherwise permitted through an exception or safe harbor provided under the regulations or a revenue procedure.

However, private foundations must file Form 990-PF and black lung benefit trusts must file Form 990-BL. However, the preceding sentence doesn’t apply if it results in no person being liable for the penalty. If a disqualified person makes a payment of less than the full correction amount, the 200% tax is imposed only on the unpaid portion of the correction amount. If more than one disqualified person received an excess benefit from an excess benefit transaction, all the disqualified persons are jointly and severally liable for the taxes. A tax-exempt organization isn’t required to comply with a request for a copy of its application for tax exemption or an annual information return if the organization has made the requested document widely available (see below).

Summary charts: organization finances over time

If you are ordering a partial set on DVD, indicate the format (Alchemy or raw), state(s), and month(s) you are ordering. DVDs and sample DVDs aren’t available for individual exempt organizations. Complete information, including the cost, is available on the IRS website. Search Copies of EO Returns Available at

  • The package gives members the right to buy tickets in advance, free parking, and a gift shop discount of 10%.
  • A supporting organization that is operated in connection with one or more supported organizations is a Type III supporting organization.
  • Don’t include advances to employees or officers or refundable deposits paid to suppliers or other independent contractors.
  • If the organization can’t distinguish between reportable compensation and other compensation from the unrelated organization, report all such compensation in column (D).
  • For each family and business relationship, identify the persons and describe their relationship on Schedule O (Form 990).

If the filing organization reports compensation on this basis, it must explain on Schedule O (Form 990) and state the period during which the related organization was related. Reportable compensation paid to the person by a related organization at any time during the entire calendar year ending with or within the filing organization’s tax year should be reported in column (E). If the related organization was related to the filing organization for only a portion of the tax year, then the filing organization may choose to report only compensation paid or accrued by the related organization during the time it was actually related. If the filing organization reports compensation on this basis, it must explain in Schedule O (Form 990) and state the period during which the related organization was related. A “current” officer, director, or trustee is a person that was an officer, director, or trustee at any time during the organization’s tax year. A “current” key employee or highest compensated employee is a person who was an employee at any time during the calendar year ending with or within the organization’s tax year, and was a key employee or highest compensated employee for such calendar year.

More In File

“Agent” is defined under traditional agency principles (but doesn’t include volunteers). The accounting principles set forth by the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public Accountants (AICPA) that guide the work of accountants in reporting financial information and preparing audited financial statements for organizations. For corporations, enter the balance per books of capital stock accounts.

Form 990

Forms 990, 990-EZ and 990-N are filed by tax-exempt organizations, Which form you submit depends on your gross receipts. The IRS and the public can evaluate nonprofits and how they operate just by examining their 990s. The form collects information about the mission, programs, and finances of tax-exempt organizations. The 990 also gives each nonprofit an opportunity to report what it accomplished the prior year, thus making a case for keeping its tax-exempt status.

What Is Form 990: Return of Organization Exempt From Income Tax?

A supporting organization is organized and operated exclusively to support one or more supported organizations. A supporting organization that is operated, supervised, or controlled by one or more supported organizations is a Type I supporting organization. The relationship of a Type I supporting organization with its supported organization(s) is comparable to that of a parent-subsidiary relationship. A supporting organization supervised or controlled in connection with one or more supported organizations is a Type II supporting organization.

Form 990

Such payments could include direct payment of medical bills, etc., authorized by the Act and accident and health benefits for retired miners and their spouses and dependents. If the organization operated one or more hospital facilities at any time during the tax year, then it must attach a copy of its most recent audited financial statements. If the organization was included in consolidated audited financial statements but not separate audited financial statements for the tax year, then it must attach a copy of the consolidated financial statements, including details of consolidation (whether or not audited). In the case of indirect investments made through investment entities, the extent to which revenue or expenses are taken into account in determining whether the $10,000 threshold is exceeded will depend upon whether the investment entity is treated as a partnership or corporation for U.S. tax purposes. For example, an organization with an interest in a foreign partnership would need to take into account its share of the partnership’s revenue and expenses in determining whether the $10,000 threshold is exceeded. An accountant’s compilation or review of financial statements isn’t considered to be an audit and doesn’t produce audited financial statements.

Extensions of time to file

A private college or university will be subject to the excise tax on net investment income under section 4968 only if four threshold tests are met. One of the requirements that an organization must meet to qualify under section 501(c)(12) is that at least 85% of its gross income consists of amounts collected from members for the sole purpose of meeting losses and expenses. For purposes of section 501(c)(12), the term “gross income” means gross receipts without reduction for any cost of goods sold. Because the donor’s payment exceeds $75, the organization must furnish a disclosure statement even though the taxpayer’s deductible amount doesn’t exceed $75.