Form 990-EZ Tax Year 2013 Filing Checklist
Understanding 2013 Form 990-EZ Requirements
Form 990-EZ is the short-form annual information return for tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations with limited financial activity. The 2013 form introduced Item K, which requires organizations to designate their legal structure as a corporation, trust, association, or other entity. Organizations must have gross receipts less than $200,000 and total assets less than $500,000 to qualify. Both conditions must be met simultaneously.
Year-Specific Tax Provisions
Tax relief provisions enacted in 2001 and 2003, extended through 2012 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, remained in effect but did not create specific line items or schedules for Form 990-EZ filers. Economic Impact Payment reconciliation does not apply, as those programs concluded in 2009. The unrelated business income threshold of $1,000, which triggers Form 990-T filing, remained unchanged.
Eligibility Requirements
Organizations must have gross receipts less than $200,000 and total assets less than $500,000 to qualify. Organizations that meet or exceed either threshold must file Form 990. Specific organizations cannot use Form 990-EZ regardless of size: private foundations must file Form 990-PF; sponsoring organizations of donor-advised funds must file Form 990; organizations operating hospitals must file Form 990 and Schedule H; section 501(c)(29) organizations must file Form 990; controlling organizations under section 512(b)(13) must file Form 990; and section 509(a)(3) supporting organizations must file Form 990 or Form 990-EZ even if gross receipts are usually $50,000 or less.
10-Step Compliance Checklist
1. Verify Eligibility and Thresholds
Confirm gross receipts less than $200,000 and total assets less than $500,000 at year-end. Calculate gross receipts by summing lines 5b, 6c, and 7b, then adding line 9. Review prohibited organizations, including private foundations, donor-advised fund sponsors, hospital operators, section 501(c)(29) organizations, and controlling organizations under section 512(b)(13). If either threshold is exceeded, file Form 990 instead.
2. Gather Financial Documents
Collect bank statements, investment records, grant agreements, and donation records. Obtain all Forms W-2 for employees and Forms 1099-MISC for contractors. Compile profit and loss statements and balance sheet documentation showing beginning and end-of-year positions as of December 31, 2013, or fiscal year-end.
3. Complete Heading Items
Enter the tax year as the 2013 calendar year or specify fiscal year dates. Complete new Item K by checking the appropriate box for the organization type: corporation, trust, association, or other. Mark boxes for address change, name change, initial return, amended return, or application pending. Enter the legal name exactly as shown on the IRS determination letter. Provide address, employer identification number, telephone, and group exemption number if applicable. Determine the organization type: 501(c)(3), 501(c)(4), 501(c)(6), 527, or 4947(a)(1).
4. Complete Part I Revenue Lines
Report contributions on line 1 without netting uncollectible pledges. Discounts on services cannot be reported as contributions. Report program service revenue on line 2 and membership dues on line 3. Report investment income on line 4. Calculate net gain or loss from asset sales on line 5c. Report net income from special events and gaming on line 6d, attaching Schedule G if gaming exceeds $15,000. Report inventory sales on line 7c. Report other revenue on line 8. Sum all lines for total revenue on line 9.
5. Complete Part I Expense Lines
Report grants paid on line 10. Report member benefits on line 11. Report salaries and employee benefits on line 12. Report professional fees on line 13, following clarifications regarding expense payments and reimbursements to contractors. Report occupancy costs on line 14. Report depreciation on line 15. Report other expenses on line 16. Sum lines 10 through 16 for total expenses on line 17.
6. Complete Part II Balance Sheet
Enter beginning-of-year amounts in column A and end-of-year amounts in column B. Report cash and savings on line 22. Report land and buildings on line 23. Report other assets on line 24 with Schedule O descriptions for significant amounts. Calculate the total assets on line 25, column B, and if the amount is $500,000 or more, kindly file Form 990. Report total liabilities on line 26. Calculate net assets on line 27 by subtracting liabilities from assets.
7. Complete Part III Program Accomplishments
Describe the primary exempt purpose clearly. For the three most expensive program services, provide detailed descriptions and accomplishments. Report expenses on lines 28a, 29a, and 30a. Report program service revenue on lines 28b, 29b, and 30b if applicable. Select the boxes if expenses include grants. Attach Schedule O for additional programs beyond the three largest.
8. Complete Part IV Compensation Reporting
List all officers, directors, trustees, and key employees, even if unpaid. Directors’ compensation for non-director independent contractor services must be reported. Column A contains the name without the street address. Column b includes the title and average weekly hours. Column c contains reportable compensation from W-2 and 1099-MISC forms—enter zero if none. Column d contains health benefits, contributions to employee benefit plans, and deferred compensation. Column e contains estimated other compensation with a $10,000-per-item exclusion—items under $10,000 per person per item need not be reported.
Report compensation for the calendar year ending with or within your tax year. Report the five highest-compensated employees earning over $100,000 on line 50. Report the five highest-compensated contractors over $100,000 on line 51.
9. Complete Part V and Determine Schedules
Answer all yes-or-no questions (33 through 49b). Question 35a asks about unrelated business gross income of $1,000 or more—if yes, file Form 990-T. Answer questions about excess benefit transactions, political activities, lobbying, school operations, related organizations, donor-advised funds, hospital facilities, foreign accounts, and asset dispositions.
Required schedules based on yes responses: Schedule G if gaming exceeds $15,000; Schedule L if excess benefit transactions or interested-person loans occurred; Schedule C if political or lobbying activities for 501(c)(3) organizations; Schedule N if liquidation or disposal of more than 25 percent of net assets.
10. Attach Schedules, Sign, and File
All section 501(c)(3) organizations and section 4947(a)(1) trusts must attach Schedule A. Attach Schedule O for narrative explanations. Attach other schedules based on the responses in Part V. Sign under penalties of perjury with the original signature and date. Authorized officers include the president, vice president, treasurer, or executive director. Paid preparers must sign and provide their Taxpayer Identification Number.
File by the 15th day of the 5th month after year-end. Calendar year filers file by May 15, 2014. Request an automatic three-month extension using Form 8868. Request an additional three-month extension if necessary, provided there is reasonable cause.
Key 2013 Form Changes
Item K was added, requiring organizations to designate their legal form as either a corporation, trust, association, or other type. Item B instructions clarified documentation requirements for name changes or reporting termination, dissolution, merger, or IRS revocation. Item H instructions have been explained to specify when organizations can exclude contributors from Schedule B who fall below the $5,000 or 2 percent threshold.
Line 1 instructions clarified that discounts on services cannot be reported as contributions. Line 7b instructions clarified cost reporting for inventory sales. Line 13 instructions clarified expense payment and reimbursement reporting for contractors. Part IV instructions clarified that directors’ compensation for non-director independent contractor services must be reported.
Form Limitations
Section 501 (c) (7) social clubs and Section 501 (c) (15) cooperatives use different gross receipts definitions for tax-exempt status, but the same thresholds apply for form selection. Organizations that have changed accounting periods within the preceding 10 years must attach Form 1128 for short periods. Short-period returns cannot be filed electronically unless the initial or final return boxes are checked. No itemized deductions permitted—use standardized categories or Schedule O.
Section 4947(a)(1) trusts filing Form 990-EZ instead of Form 1041 must check the box on line 43 and enter tax-exempt interest received. All yes-or-no questions must be answered; blank responses render the return incomplete. Organizations with 250 or more returns and $10 million or more in assets are required to file Form 990 electronically. Organizations that fail to file for three consecutive years face automatic revocation of their tax-exempt status.
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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.
