IRS Form 990-EZ (2020): Short Form for Tax-Exempt Orgs.
What IRS Form 990-EZ (2020) Is For
Form 990-EZ is the annual information return required for tax-exempt organizations under section 501(a), certain political organizations, and nonexempt charitable trusts that have gross receipts under $200,000 and total assets under $500,000 at year-end.
The form provides the IRS with essential information about the organization’s finances, activities, and compliance with federal tax requirements (IRS Instructions for Form 990-EZ (2020)).
When You’d Use Form 990-EZ for 2020 (Late or Amended Filing)
You’d file a late or amended 2020 Form 990-EZ if you:
- Received IRS notices for unfiled returns.
- Discovered errors in previously filed returns.
- Need to correct missing or inaccurate information.
Late filers may face daily penalties of $20 per day up to $10,500 (or 5% of gross receipts, whichever is less), with higher penalties for organizations with receipts over $1,084,000.
Common situations include IRS Letters 2694C, 2695C, or 2696C for incomplete returns, or automatic revocation warnings after three consecutive years of non-filing (IRS Instructions for Form 990-EZ (2020)).
Key Rules Specific to 2020
- Form 1099-NEC requirement: Organizations must include nonemployee compensation reported in box 1 of Form 1099-NEC when reporting compensation.
- Electronic filing: Encouraged but not mandatory for 2020 returns. Paper filings were still accepted for tax years ending before July 31, 2021.
- Eligibility thresholds: Gross receipts under $200,000 and assets under $500,000.
- Restrictions: Certain organizations—like donor advised fund sponsors, hospitals, section 501(c)(29) health insurance issuers, and controlling organizations—must file Form 990 regardless of size.
Step-by-Step (High Level)
- Gather transcripts: Use Form 4506-A to request copies of filed returns or account transcripts.
- Complete the 2020 form: Use the official 2020 version of Form 990-EZ (Parts I–V, and Part VI for 501(c)(3) organizations).
- Attach schedules: Include all schedules required by your organization’s activities and responses.
- File properly: Mail to IRS Service Center, Ogden, UT 84201-0027, or file electronically if available.
- Keep records: Maintain copies for at least three years for public inspection and IRS compliance.
Common Mistakes and How to Avoid Them
- Incomplete returns: Enter amounts or “0” instead of leaving blank lines.
- Wrong form selection: Ensure you meet the gross receipts/assets thresholds for 990-EZ.
- Missing schedules: Review Part V checklist carefully and attach all required schedules.
- Including SSNs: Never list Social Security numbers on publicly available forms.
- Signature errors: An authorized officer must sign the return.
- Overlooking Form 1099-NEC: Report nonemployee compensation correctly.
What Happens After You File
- Processing time: 4–6 weeks, though late or amended returns may take longer.
- IRS notices: Letters may request missing information or impose penalties.
- Penalties: Daily penalties continue until a complete and accurate return is filed.
- Abatement & appeals: Organizations can request penalty relief for reasonable cause or arrange payment plans using Form 9465.
- Incomplete return letters: IRS Letters 2694C, 2695C, or 2696C may require corrections within 10 days.
FAQs
What penalties apply for late filing of 2020 Form 990-EZ?
Daily penalties of $20 per day up to $10,500 or 5% of gross receipts, whichever is less. Organizations with gross receipts over $1,084,000 face $105 daily penalties up to $54,000 maximum.
Can I still file a paper 2020 Form 990-EZ?
Yes. For tax years ending before July 31, 2021, both paper and electronic filing were accepted. Mandatory e-filing began for tax years ending after July 31, 2021.
How do I get transcripts of my organization’s filing history?
Submit Form 4506-A or request online through IRS.gov to obtain prior returns or account transcripts.
When is it too late to claim a refund on an amended return?
Generally, within 3 years of the original due date or 2 years from the payment date, whichever is later. However, Form 990-EZ is an information return, so refunds usually don’t apply.
Should I also amend my state returns?
Yes, check your state’s requirements. Many states require amended state filings if you amend your federal Form 990-EZ.
What if my organization exceeded the $200,000/$500,000 thresholds?
You must file Form 990 instead of Form 990-EZ, even for late or amended filings.
How long do penalties continue to accrue?
Penalties accrue daily until you file a complete return. If deadlines in IRS notices are missed, individual officers may also face additional $10 per day penalties up to $5,000.
