Form 990-EZ Tax Year 2022 Compliance Checklist
Understanding 2022 Form 990-EZ Requirements
Form 990-EZ is the short-form annual information return for tax-exempt organizations with gross receipts less than $200,000 and total assets less than $500,000 at year-end. Both thresholds must be met simultaneously. Organizations exceeding either threshold must file Form 990 instead.
Specific organizations, regardless of size, cannot use Form 990-EZ, including private foundations, donor-advised fund sponsors, hospital operators, section 501(c)(29) nonprofit health insurance issuers, and section 512(b)(13) controlling organizations that transferred funds during the year. For tax years ending on or after July 31, 2021, electronic filing is mandatory. Paper filing is accepted only for name changes, accompanied by the required documentation.
Filing Eligibility and Key Requirements
Parts I through V apply to all filers. Part VI applies only to section 501(c)(3) organizations and section 4947(a)(1) nonexempt charitable trusts. All section 501(c)(3) organizations must complete Schedule A, demonstrating public charity status.
Organizations with unrelated business gross income of $1,000 or more must file Form 990-T in addition to Form 990-EZ. Beginning with tax year 2020, Form 1099-NEC, Box 1, reports nonemployee compensation instead of Form 1099-MISC, Box 7.
10-Step Compliance Checklist
1. Verify Eligibility and Thresholds
Confirm gross receipts are less than $200,000 and total assets are less than $500,000. Calculate gross receipts by adding line 5b, line 6c, and line 7b to line 9. Ensure the organization can file Form 990-EZ based on entity type.
2. Determine Required Schedules
Schedule A is mandatory for section 501(c)(3) organizations and section 4947(a)(1) trusts. Schedule O is required only when supplemental information is requested or when there is insufficient space. Schedule G is required if gaming income exceeds $15,000 or if the combined revenue from fundraising events and contributions exceeds $15,000 in a given year. Schedule L is required for transactions involving excess benefits or loans to interested persons. Schedule C is required for political expenditures or lobbying by section 501(c)(3) organizations. Schedule N is necessary for the liquidation or disposal of more than 25% of net assets.
3. Gather Financial Documentation
Collect Forms W-2 for employees, Forms 1099-NEC for independent contractors, Forms 1099-INT for investment income, donation receipts, grant agreements, program service revenue records, and fundraising or gaming activity documentation. Prepare balance sheet documentation that shows the beginning- and end-of-year positions.
4. Complete Heading Information
Enter tax year 2022 or fiscal year dates. Select the applicable boxes for changes or status updates. Enter legal name, address, employer identification number, telephone number, and group exemption number if applicable. Indicate the accounting method and website. Select the organization type box. Complete Item K for the organization form. Calculate Item L gross receipts to verify eligibility.
5. Report Revenue in Part I
Report contributions on line 1, program service revenue on line 2, membership dues on line 3, and investment income on line 4. Calculate net gain or loss from asset sales on lines 5a through 5c. Report gaming and fundraising events on lines 6a through 6d. Report inventory sales on lines 7a through 7c. Report other revenue on line 8. Calculate total revenue on line 9.
6. Report Expenses in Part I
Report grants paid on line 10, member benefits on line 11, salaries and compensation on line 12, professional fees on line 13, occupancy costs on line 14, printing and postage on line 15, and other expenses on line 16. Calculate total expenses on line 17. Calculate excess or deficit on line 18 by subtracting line 17 from line 9.
7. Calculate Net Assets in Part I
Enter beginning net assets from prior year, line 27 column A, on line 19. Report other changes in net assets on line 20 with Schedule O explanations in Schedule O. Calculate ending net assets on line 21 by combining lines 18, 19, and 20. Line 21 must agree with line 27 column B.
8. Complete Balance Sheet in Part II
Report cash, savings, and investments on line 22 for the beginning and end of the year. Report land and buildings on line 23. Report other assets on line 24. Calculate total assets on line 25. If line 25 column B equals or exceeds $500,000, file Form 990 instead. Report total liabilities on line 26. Calculate net assets on line 27 by subtracting line 26 from line 25. Line 27 column B must agree with line 21.
9. Describe Program Accomplishments in Part III
Describe the primary exempt purpose. For each of the three largest program services, describe services provided, persons benefited, and expenses on lines 28a, 29a, and 30a. Report additional programs on line 31. Calculate total program service expenses on line 32. This section is required for section 501(c)(3) and 501(c)(4) organizations.
10. Complete Part IV, Part V, and Part VI
List all officers, directors, trustees, and key employees in Part IV with compensation details. Section 501(c)(3) organizations complete line 50 for the five highest compensated employees over $100,000 and line 51 for the five highest compensated independent contractors over $100,000.
Answer all Part V questions regarding activities, unrelated business income, political expenditures, loans, excess benefit transactions, foreign accounts, donor-advised funds, hospital operations, and controlled entities. File Form 990-T if unrelated business income equals or exceeds $1,000.
Section 501(c)(3) organizations answer Part VI questions 47 through 49b regarding lobbying, school status, and related organization transfers. Confirm Schedule A attachment on line 52. Attach all required schedules. Sign and date the return. File electronically by the 15th day of the 5th month after year-end. Calendar-year filers must file by May 15, 2023. Request extension using Form 8868 if needed.
Electronic Filing and Penalties
Electronic filing is mandatory for tax years ending on or after July 31, 2021. Organizations that fail to file electronically are deemed not to have filed, even if a paper return is submitted.
Organizations that fail to file for three consecutive years face automatic revocation of their tax-exempt status. Penalties range from $20 to $110 per day, depending on gross receipts, with maximums of $11,000 to $56,000 per year. Incomplete returns may result in fines. Organizations must maintain records for a minimum of three years from the date of filing or the due date of the filing.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
