Form 990 is the IRS's annual information return that tax-exempt organizations use to report their finances, activities, and governance to both the government and the public. Think of it as a financial transparency document that shows the public how a nonprofit organization operates and spends its money. For the 2014 tax year, this form continued to serve as the primary accountability tool for exempt organizations.

What the Form Is For

Form 990 serves as an annual information return required by the IRS under section 6033 of the Internal Revenue Code. Tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations use this form to report their financial activities, program accomplishments, governance practices, and compliance with federal tax requirements.

The form provides transparency about how organizations conduct their operations and manage their resources. Unlike tax returns that calculate taxes owed, Form 990 is primarily an information disclosure document. Once filed, nearly all information on Form 990 becomes publicly available, allowing donors, grantmakers, media, regulators, and the general public to evaluate an organization's activities and financial health. The IRS specifically notes that "some members of the public rely on Form 990 or Form 990-EZ as their primary or sole source of information about a particular organization."

Most organizations exempt under section 501(c)(3) and other 501(c) subsections must file Form 990 if they have gross receipts of $200,000 or more, or total assets of $500,000 or more at year-end. Organizations with smaller budgets may file the shorter Form 990-EZ (for those with gross receipts under $200,000 and assets under $500,000) or Form 990-N electronic notice (for those with gross receipts normally $50,000 or less). However, certain types of organizations—such as churches, integrated church auxiliaries, and state institutions—are exempt from filing requirements. IRS.gov

When You’d Use Form 990 (Late/Amended)

Form 990 is due by the 15th day of the 5th month after the organization's accounting period ends. For calendar-year organizations, this means May 15th of the following year. If your organization's fiscal year ends on June 30, 2014, the return would be due November 15, 2014.

Extensions

Organizations needing more time can request an automatic 3-month extension using Form 8868. If additional time is still needed, a second 3-month extension can be requested (also on Form 8868), but this requires demonstrating reasonable cause. The total extension period cannot exceed 6 months. Note that Form 990-N (e-Postcard) filers cannot request extensions.

Amended Returns

If you discover errors or omissions after filing, you can file an amended Form 990 at any time. Use the version of Form 990 applicable to the year being amended (so for 2014, use the 2014 form). Check the "Amended return" box in Item B of the form's heading, and use Schedule O to explain which parts were amended and why. The amended return must include all information—not just the corrections—and must be made available for public inspection for 3 years from the filing date or 3 years from the original due date, whichever is later.

Late Filing

If you're filing late, include a separate statement explaining why. The IRS imposes penalties for late filing unless reasonable cause can be demonstrated. Organizations that fail to file for three consecutive years face automatic revocation of their tax-exempt status—a serious consequence that requires reapplying for exemption. IRS.gov

Key Rules or Details for 2014

Filing Thresholds

Organizations had to file Form 990 if they had either (1) gross receipts of $200,000 or more, or (2) total assets of $500,000 or more at year-end. Gross receipts include all revenue from all sources without subtracting costs or expenses.

Electronic Filing Requirements

For 2014, organizations filing at least 250 returns of any type during the calendar year and having total assets of $10 million or more at year-end were required to file electronically. Filing a paper return when electronic filing is required means the return is considered not filed at all.

Mandatory Schedules

All Form 990 filers must complete Parts I through XII, Schedule O (Supplemental Information), and any additional schedules triggered by "Yes" responses in Part IV (Checklist of Required Schedules). Common required schedules include Schedule A (Public Charity Status and Public Support) for section 501(c)(3) organizations, Schedule B (Schedule of Contributors), and Schedule D (Supplemental Financial Statements).

Compensation Reporting Changes

The 2014 instructions clarified that reportable compensation should not be treated as deferred if it was deferred from the calendar year ending with or within the tax year to a date not more than 2½ months after the end of that calendar year.

Public Disclosure

Organizations must make their Form 990 available for public inspection, both at their offices and online if they post it. Social security numbers should never be included on the form since it becomes public. Donor names and addresses on Schedule B generally remain confidential except for political organizations.

Supporting Organizations

Section 509(a)(3) supporting organizations must file Form 990 or 990-EZ even if their gross receipts are normally $50,000 or less—they cannot use the simpler Form 990-N. IRS.gov

Step-by-Step (High Level)

Filing Form 990 involves a systematic approach:

1. Determine Filing Requirements

Verify that your organization must file Form 990 (rather than 990-EZ or 990-N) based on your gross receipts and total assets. Identify any special requirements, such as mandatory electronic filing.

2. Gather Financial Information

Collect your organization's financial statements, including revenue by source, expenses by category and function, and year-end balance sheet. Most organizations use either cash or accrual accounting methods consistently.

3. Complete Core Form in Sequence

Start with the heading (Items A-M), identifying basic information like your EIN, tax year, and any name or address changes. Then complete Parts VIII (Revenue), IX (Functional Expenses), and X (Balance Sheet) since these provide data needed for earlier sections. Next, complete Part VII (Compensation), Part III (Program Services), Part VI (Governance), Part V (Tax Compliance), Part XI (Net Assets Reconciliation), and Part XII (Financial Statements). Finally, complete Part I (Summary) and Part IV (Required Schedules checklist).

4. Complete Required Schedules

Based on your answers in Part IV, complete all required schedules alphabetically (A through R as applicable). All filers must complete Schedule O for supplemental narrative explanations.

5. Review for Completeness

Ensure every applicable line has an entry (including zeros where appropriate), all required signatures are present, and all "Yes" answers have corresponding explanations or schedules. Missing information is a common reason for IRS follow-up and potential penalties.

6. File by the Deadline

Submit your return to the IRS Ogden Service Center by the due date (or extended due date). Use certified mail if filing by paper to document timely filing. If filing electronically, save confirmation of successful transmission.

7. Make Available for Public Inspection

Prepare copies for public disclosure, redacting only contributor information from Schedule B (unless you're a political organization). You must provide copies immediately for in-person requests and within 30 days for written requests. IRS.gov

Common Mistakes and How to Avoid Them

The IRS identified several recurring errors that can trigger penalties or delays:

Incomplete Returns

Leaving lines blank or failing to complete required schedules is the most frequent mistake. Every applicable line must have an entry—use zero if the amount is zero, not blank. Even if a question doesn't apply, indicate "N/A" rather than leaving it unanswered.

Missing Signatures

Form 990 requires signatures from an authorized officer and the paid preparer (if applicable). An unsigned return is incomplete and subject to penalties. The officer must sign under penalties of perjury.

Incorrect Revenue Reporting

Organizations sometimes report contributions net of fundraising expenses, which violates reporting requirements. Revenue and expenses must be reported separately and gross. Special events and fundraising activities have specific reporting lines that require showing both revenue and direct expenses.

Netting Instead of Grossing

Report all amounts on a gross basis unless specifically instructed otherwise. For example, report gross investment income, not net of fees.

Omitting Related Party Transactions

Failing to report transactions with officers, directors, key employees, substantial contributors, or related organizations on Schedule L can result in penalties. These relationships must be disclosed even if transactions were at fair market value.

Electronic Filing Failures

Organizations required to file electronically that submit paper returns are deemed to have not filed at all. Verify your organization's filing requirements before selecting your filing method.

Compensation Reporting Errors

Underreporting compensation (missing benefits, expense accounts, or deferred amounts) or failing to list all required individuals in Part VII creates compliance problems. Include all forms of compensation, not just W-2 wages.

How to Avoid These Mistakes

Use a checklist to verify each section is complete. Have a second person review the return before filing. Use tax preparation software designed for nonprofits, which can catch common errors. Keep detailed records throughout the year rather than scrambling at filing time. When in doubt, provide more information rather than less—use Schedule O for narrative explanations. IRS.gov

What Happens After You File

Once you submit Form 990, several things occur:

IRS Processing

The IRS receives and processes your return, checking for completeness, required signatures, and mandatory schedules. If information is missing or unclear, the IRS will contact you requesting clarification or additional information. Processing typically takes several months.

Public Disclosure

Your Form 990 (except certain Schedule B contributor information) becomes publicly available through the IRS and must be provided by your organization upon request. Anyone can request copies from the IRS or directly from your organization.

State Reporting

Many states accept Form 990 in lieu of their own reporting forms for charitable solicitation registration or other regulatory purposes. Some states require you to file a copy with them directly.

Ongoing Obligations

You must make the three most recent years' Forms 990 available for public inspection at your principal office during regular business hours. Requests must be honored immediately if made in person, or within 30 days if made in writing. Failure to provide copies results in penalties of $20 per day up to $10,000.

Monitoring for Revocation

The IRS monitors filing compliance. Missing three consecutive years of required filings results in automatic revocation of tax-exempt status. Once revoked, you must reapply for exemption and cannot claim retroactive status.

Possible Examination

While Form 990 is an information return, not a tax return, the IRS may select your organization for examination based on the information reported or other compliance concerns. Significant discrepancies or omissions increase examination likelihood. IRS.gov

FAQs

1. What happens if we can't file by the May 15 deadline?

File Form 8868 by your original due date to request an automatic 3-month extension. If you need additional time beyond that, file a second Form 8868 before the extended deadline with an explanation of reasonable cause. Extensions extend the filing deadline but not the public disclosure obligation—once you file, the return is immediately subject to public inspection requirements.

2. Do we need to file if our gross receipts are under $200,000?

It depends on your assets. If your total assets are under $500,000 and gross receipts are under $200,000, you can file the shorter Form 990-EZ instead. If your gross receipts are normally $50,000 or less, you may be eligible to file Form 990-N (e-Postcard) unless you're a section 509(a)(3) supporting organization. Churches and certain other organizations may not need to file at all.

3. What's the penalty for filing late or filing an incomplete return?

The penalty is $20 per day the return is late or incomplete (or $100 per day for organizations with gross receipts exceeding $1 million), up to a maximum of $10,000 ($50,000 for large organizations) or 5% of gross receipts, whichever is less. Individual officers can also be penalized $10 per day (up to $5,000 total) for willful failure to file. Most seriously, failing to file for three consecutive years results in automatic revocation of exempt status.

4. Can we post our Form 990 online instead of providing paper copies?

Yes. If you post your entire Form 990 on your website in a format that can be downloaded, printed, and viewed by the public free of charge, you can inform requesters of the website address instead of providing paper copies. However, if the requester still wants a paper copy or your website is temporarily unavailable, you must provide the paper copy.

5. Which accounting method should we use—cash or accrual?

Generally, use the same method you use for your books and records, as long as it clearly reflects income. Many states that accept Form 990 require accrual accounting, so many organizations use accrual for Form 990 even if they use cash for internal purposes. Whichever method you choose, use it consistently throughout the form and schedules.

6. Do we need to file if we're dissolving or terminating our organization?

Yes. File a final Form 990 by the 15th day of the 5th month after liquidation, dissolution, or termination. Check the "Final return/terminated" box in Item B and complete Schedule N (Liquidation, Termination, Dissolution, or Significant Disposition of Assets). The final return documents the distribution of your remaining assets and formally closes your tax-exempt status.

7. What if we discover errors after filing our Form 990?

File an amended Form 990 using the same year's form, check the "Amended return" box, and explain the changes in Schedule O. Include all information, not just corrections. The amended return becomes part of your public record and must be made available for inspection. There's no penalty for filing an amended return to correct honest mistakes, but it's important to file promptly once errors are discovered. IRS.gov

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