What IRS Form 990 (2018) Is For

Form 990 is the annual information return that tax-exempt organizations must file with the IRS to disclose activities, finances, and compliance with federal requirements. Organizations with gross receipts of $200,000 or more or total assets of $500,000 or more at year-end must file the full Form 990 rather than the simplified Form 990-EZ (IRS Instructions for Form 990 (2018)).

When You’d Use Form 990 for 2018 (Late or Amended Filing)

You would file a 2018 Form 990 late if your organization missed the original deadline and received IRS notices about unfiled returns, or if you need to preserve your tax-exempt status. Filing late may also occur if:

• The IRS identified deficiencies and sent an incomplete return letter (Letter 2694C, 2695C, or 2696C).
  
  
• Your organization risked automatic revocation after three consecutive years of non-filing.
  
  
• You discovered errors requiring correction or had a fiscal year beginning in 2018 and ending in 2019.
  
  

An amended return may be required if prior filings contained errors in reporting activities, finances, or governance details.

Key Rules Specific to 2018

• Section 4960: New excise tax on organizations paying covered employees over $1 million in compensation or excess parachute payments.
  
  
• Section 4968: Excise tax on net investment income for certain private colleges and universities.
  
  
• UBTI changes: Disallowed fringe benefits such as parking and transportation benefits increased unrelated business taxable income.
  
  
• FASB ASU 2016-14: New financial reporting standards changed how not-for-profits classify net assets.
  
  
• Filing thresholds: Same as prior years—$200,000 receipts or $500,000 assets for mandatory Form 990 filing.
  
  

Step-by-Step (High Level)

• Gather documentation: Collect financial records, governance documents, and compensation data for 2018. Request IRS transcripts if needed.
• Use correct-year form: File the official 2018 version of Form 990; do not use current-year versions.
• Attach required schedules: Include Schedule O (mandatory) plus others triggered by the Part IV checklist.
• File properly: Mail to IRS Service Center, Ogden, UT 84201-0027, or file electronically if required.
• Maintain records: Keep complete filed copies for both IRS compliance and public inspection requirements.

Common Mistakes and How to Avoid Them

• Using the wrong form year: Always file with the 2018 version for that tax year.
  
  
• Incomplete filings: The IRS rejects incomplete returns; correction letters require full resubmission within 10 days.
  
  
• Omitting Schedule O: All filers must include it for supplemental explanations.
  
  
• Gross receipts miscalculation: Report total revenues, not net figures.
  
  
• Electronic filing noncompliance: Organizations filing 250+ returns annually must e-file.
  
  
• Accounting method inconsistency: Use the same method throughout (cash or accrual).
  
  

What Happens After You File

The IRS typically processes exempt organization returns within 6–8 months, though late filings often take longer. You may receive notices identifying deficiencies or requesting corrections. If penalties are assessed, you can request abatement for reasonable cause by providing written explanations. Completed returns become part of the public record for three years and must be available for inspection.

FAQs

Q: What penalties apply for late 2018 filing?
A: $20/day up to $10,500 or 5% of gross receipts for smaller orgs; larger organizations face higher daily penalties and maximums.

Q: Can penalties be reduced or eliminated?
A: Yes. Provide a reasonable cause statement citing extenuating circumstances beyond your control.

Q: What if I receive an incomplete return letter?
A: Submit a corrected complete return within 10 days; the IRS considers the corrected version as the filed return.

Q: Should I file an amended return for errors?
A: Yes. File the 2018 version, check “Amended return,” and explain changes in Schedule O.

Q: What if my organization lost tax-exempt status?
A: Loss occurs after three consecutive years of non-filing. Apply for reinstatement; penalties for those three years aren’t imposed.

Q: Do I need additional forms beyond Form 990?
A: Yes, file Form 990-T if you had $1,000+ in unrelated business taxable income, including disallowed transportation fringe benefits.

Q: Where do I mail my late 2018 Form 990?
A: IRS Service Center, Ogden, UT 84201-0027. Foreign filers use P.O. Box 409101, Ogden, UT 84409.

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