A Practical Guide for Tax-Exempt Organizations

What the Form Is For

Form 990-EZ is the IRS annual information return designed for small to mid-sized tax-exempt organizations. Think of it as a yearly report card that shows the government—and the public—how your nonprofit organization operated during the year.

This "short form" version of the standard Form 990 allows qualifying organizations to report their finances, activities, and governance using a simplified format. Tax-exempt organizations filing Form 990-EZ include charities described in section 501(c)(3), social welfare organizations, trade associations, and many other types of nonprofits that received their tax-exempt status under section 501(a).

The form serves multiple purposes beyond just IRS reporting. It's often the primary source of information that donors, foundations, watchdog organizations, and the general public use to evaluate your organization. Many state governments also accept Form 990-EZ to satisfy their annual reporting requirements, saving you the time and expense of filing multiple reports. IRS.gov

Who Can Use Form 990-EZ in 2013? Your organization qualifies to file the shorter 990-EZ instead of the full Form 990 if you meet both of these conditions:

• Gross receipts less than $200,000 during the tax year, AND
• Total assets less than $500,000 at year-end

However, certain organizations must file the longer Form 990 regardless of their size, including sponsoring organizations of donor advised funds, organizations that operate hospital facilities, and controlling organizations with certain fund transfers. IRS.gov

When You’d Use It (Including Late and Amended Returns)

Regular Filing Deadline

Form 990-EZ must be filed by the 15th day of the 5th month after your organization's accounting period ends. For calendar-year organizations, this means May 15. If your organization uses a fiscal year ending on June 30, your deadline would be November 15. When the due date falls on a weekend or legal holiday, you have until the next business day to file. IRS.gov

Extensions

If you need more time, use Form 8868 to request an automatic 3-month extension—no explanation required. If that's still not enough time, you can apply for an additional 3-month extension, but for this second extension you must show "reasonable cause" for needing the extra time. IRS.gov

Late Returns

If you miss the deadline without an approved extension, file as soon as possible and attach a statement explaining why the return is late. Be aware that penalties apply for late filing (discussed in the Common Mistakes section below).

Amended Returns

Sometimes you discover errors after filing your original return, or you receive important information that changes what you reported. To file an amended 990-EZ, you must complete an entirely new return for the same tax year—not just the corrected parts. Use the 2013 version of Form 990-EZ to amend a 2013 return. Check the "Amended return" box in Item B of the form's heading and use Schedule O to list which parts and schedules were amended and describe the changes. You must make the amended return available for public inspection for three years from the date you filed it or three years from when the original return was due, whichever is later. IRS.gov

Final Returns

If your organization is dissolving, terminating, or has had its tax-exempt status revoked, check the "Terminated" box in Item B and complete Schedule N (Liquidation, Termination, Dissolution, or Significant Disposition of Assets). This final return is due by the 15th day of the 5th month following termination.

Key Rules for 2013

Electronic Filing Limitation for Short Periods

In 2013, the IRS clarified that short-period returns (covering less than 12 months) cannot be filed electronically unless they're initial returns or final returns with the "Initial return" or "Terminated" box checked in Item B. This means mid-year accounting period changes typically require paper filing. IRS.gov

New Form Elements

The 2013 form introduced Item K in the heading section with checkboxes indicating your organization's legal structure (corporation, trust, association, or other). Instructions also became clearer about documentation requirements for name changes and terminations.

Schedule B Contributor Reporting

Organizations must complete Schedule B (Schedule of Contributors) listing donors who gave more than $5,000 or 2% of contributions (whichever is greater). The 2013 instructions clarified when organizations can properly exclude contributors who fall below this threshold. Note that for section 527 political organizations, Schedule B is public; for most other tax-exempt organizations, contributor names and addresses on Schedule B remain confidential. IRS.gov

Section 501(c)(3) Organizations Must Complete Part VI

All charitable organizations described in section 501(c)(3), and section 4947(a)(1) nonexempt charitable trusts, must complete the entire Part VI section, which addresses governance, management, and disclosure questions. IRS.gov

Public Disclosure Requirements

Almost everything you report on Form 990-EZ (except most of Schedule B) is available for public inspection. The IRS makes these returns available online, and your organization must provide copies to anyone who requests them. This means you should never include Social Security numbers on the form or schedules.

Gross Receipts Test

To determine if your organization "normally" has gross receipts under $200,000, the IRS looks at an average. For organizations in existence at least three years, average the gross receipts from the current year and the two preceding years. IRS.gov

Step-by-Step Filing Process (High Level)

Stage 1: Determine Eligibility and Gather Information

Before you begin filling out forms, confirm your organization meets the gross receipts and total assets tests. Collect your financial records, including income statements, balance sheets, bank statements, and records of contributions received. You'll also need compensation information for officers, directors, trustees, and key employees.

Stage 2: Complete the Heading (Items A through M)

Fill in your organization's basic identification information: name, address, Employer Identification Number (EIN), tax year, website address, and indicate your tax-exempt status code section. Item H requires you to either attach Schedule B or certify that you're not required to file it.

Stage 3: Complete Required Parts

Part I (Revenue, Expenses, and Changes in Net Assets): Report all income, including contributions, program service revenue, investment income, and special events. Then report expenses and calculate the change in your net assets for the year.
Part II (Balance Sheets): Show your organization's assets, liabilities, and net assets at both the beginning and end of the year.
Part III (Statement of Program Service Accomplishments): Describe your organization's mission and the specific activities that further your exempt purpose.
Part IV (List of Officers, Directors, Trustees, and Key Employees): List these individuals with their titles, hours worked, and compensation.
Part V (Other Information): Answer yes/no questions about various activities and compliance matters.
Part VI (Section 501(c)(3) Organizations Only): Answer questions about governance policies, document availability, and organizational management. IRS.gov

Stage 4: Complete Required Schedules

Depending on your organization's activities, you may need to attach various schedules. All section 501(c)(3) organizations must complete Schedule A (Public Charity Status and Public Support). Other common schedules include Schedule B (Contributors), Schedule C (Political Campaign and Lobbying Activities), Schedule E (Schools), Schedule L (Transactions with Interested Persons), and Schedule O (Supplemental Information). IRS.gov

Stage 5: Review, Sign, and Assemble

Have an officer of the organization sign and date the return in the signature block. Assemble your filing package in order: the core Form 990-EZ, then schedules, then attachments. Double-check that all applicable lines are completed—don't leave lines blank unless specifically instructed.

Stage 6: File with the IRS

For 2013, paper returns should be mailed to: Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0027. If you file electronically (which reduces errors), follow the e-file procedures. If you're using a private delivery service like FedEx or UPS, use a different address as listed in the instructions. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Missing or Incorrect EIN

Double-check that your Employer Identification Number is accurate. An incorrect EIN can cause processing delays and make it appear that your organization never filed, potentially triggering penalties. IRS.gov

Mistake #2: Incomplete Returns

The IRS defines an "incomplete return" as one missing required parts, schedules, or information. This includes forgetting to answer yes/no questions, leaving total lines blank, or failing to attach required schedules. To avoid this, systematically go through each section and make an entry (including zero when appropriate) on all applicable lines. The penalty for filing an incomplete return is the same as for not filing at all. IRS.gov

Mistake #3: Missing Signature

An unsigned return is not considered filed. Make sure an authorized officer signs and dates the form in Part VI. For corporations, this must be the president, vice president, treasurer, or similar officer. For trusts, authorized trustees must sign. IRS.gov

Mistake #4: Wrong Schedule A Version

Section 501(c)(3) organizations must file Schedule A, and it must be the version that matches your tax year. Using the wrong year's schedule can result in penalties even if your return is otherwise complete. Always use the 2013 Schedule A with your 2013 Form 990-EZ. IRS.gov

Mistake #5: Reporting Net Instead of Gross Amounts

Report the full gross amounts of revenue on Part I, not net amounts after expenses. For example, special event income should show total revenue on line 6a and the direct expenses on line 6b—don't just report the profit. Similarly, don't report contributions net of fundraising expenses. IRS.gov

Mistake #6: Including Social Security Numbers

Because Form 990-EZ is publicly disclosed, never include anyone's Social Security number on the form or its schedules. This protects individuals from identity theft. IRS.gov

Mistake #7: Not Keeping Reconciliation Records

If your accounting method differs from what you report on Form 990-EZ (for example, you keep cash-basis books but file an accrual-basis return), maintain a clear reconciliation. This helps if the IRS has questions and ensures accuracy.

What Happens After You File

Once you submit Form 990-EZ, several things occur:

IRS Processing

The IRS processes your return to ensure it's complete and properly identifies your organization. If there are missing schedules, math errors, or other problems, you'll receive a letter explaining what's needed. Respond promptly to these notices to avoid penalties.

Public Disclosure Begins

Your Form 990-EZ (except Schedule B contributor information for most organizations) becomes publicly available. The IRS posts approved returns on its website, typically several months after filing. IRS.gov

Your Organization's Disclosure Obligation

Federal law requires your organization to make copies of its three most recent Forms 990-EZ available to anyone who requests them, either in person or by mail. You can charge reasonable copying and postage fees. Many organizations post their returns on their websites to reduce the administrative burden of individual requests. IRS.gov

State Reporting Satisfied

If your state accepts Form 990-EZ in lieu of its own reporting forms, your federal filing typically satisfies state requirements. However, you may still need to send a copy to your state charity registration office or attorney general.

Avoiding Automatic Revocation

By filing on time (or within any approved extension period), you prevent your organization from falling into the "three consecutive years of non-filing" trap. Under federal law, organizations that don't file required returns for three straight years automatically lose their tax-exempt status. Reinstatement requires reapplying and potentially paying back taxes. IRS.gov

Potential IRS Examination

While most returns are simply processed and accepted, the IRS does examine some Form 990-EZ returns as part of its oversight of tax-exempt organizations. If your organization is selected for examination, the IRS will contact you in writing. Respond cooperatively and provide requested documentation.

FAQs

Q1: Our organization had gross receipts of $45,000. Do we still need to file Form 990-EZ?

Organizations with gross receipts normally $50,000 or less can file Form 990-N (the e-Postcard) instead of Form 990-EZ. However, you're welcome to file Form 990-EZ voluntarily if you prefer the more detailed reporting, and many organizations do because it provides better transparency to donors. Note that section 509(a)(3) supporting organizations must file Form 990 or 990-EZ even if gross receipts are under $50,000. IRS.gov

Q2: Can we file Form 990-EZ electronically for 2013?

Yes, electronic filing is available for Form 990-EZ and is encouraged because e-filed returns have fewer errors. However, if you're filing a short-period return (covering less than 12 months), you can only e-file if it's an initial return or final return. Mid-year accounting period changes typically require paper filing in 2013. IRS.gov

Q3: What are the penalties for filing late or filing an incomplete return?

The penalty is $20 per day the return is late or incomplete, up to a maximum of $10,000 or 5% of gross receipts (whichever is less). For organizations with annual gross receipts exceeding $1 million, the penalty increases to $100 per day, with a maximum of $50,000. These penalties apply unless you can show reasonable cause for the late or incomplete filing. If individuals are personally responsible and don't respond to IRS notices, they can face an additional penalty of $10 per day (up to $5,000 total). IRS.gov

Q4: We changed our organization's name during the year. What do we need to do?

Check the "Name change" box in Item B of the form heading. You must also attach documentation supporting the name change, such as amended articles of incorporation. If you're required to file electronically but need to report a name change, you must file by paper (with documentation attached) rather than electronically. IRS.gov

Q5: Our fiscal year is July 1 to June 30. Which version of Form 990-EZ do we use for the year ending June 30, 2014?

Use the 2013 Form 990-EZ for fiscal years beginning in 2013, even if they end in 2014. Since your fiscal year began July 1, 2013, you'll use the 2013 form and indicate your beginning date (07/01/2013) and ending date (06/30/2014) in the heading. IRS.gov

Q6: Do we need to report volunteers on Part IV (officers, directors, trustees, and key employees)?

Report volunteers only if they are officers, directors, or trustees. You don't need to list regular program volunteers. If an officer or director position is unpaid, list them with their title and indicate zero compensation. IRS.gov

Q7: How long should we keep copies of our filed returns and supporting documentation?

Keep records supporting your Form 990-EZ for at least three years from the date the return was due or filed (whichever is later). Keep the actual filed returns indefinitely, as you must make your three most recent returns available for public inspection, and you may need older returns for various purposes. Some states and organizational policies may require longer retention periods. IRS.gov

‍