Form 990-EZ Tax Year 2024 Filing Checklist
Understanding 2024 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. Electronic filing is mandatory. Organizations exceeding either threshold must file Form 990 instead.
Specific organizations cannot use Form 990-EZ, regardless of size, including private foundations, donor-advised fund sponsors, hospital operators, section 501 (c) (3) nonprofit health insurance issuers, and section 512(b)(13) controlling organizations that transferred funds during the year.
Filing 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. Organizations with unrelated business gross income of $1,000 or more must file Form 990-T in addition to Form 990-EZ.
10-Step Compliance Checklist
Step 1: Verify Eligibility
Confirm gross receipts are less than $200,000 and total assets are less than $500,000 at year-end. Calculate gross receipts by adding line 5b, line 6c, and line 7b to line 9. Verify the organization is not prohibited from filing Form 990-EZ due to entity type restrictions.
Step 2: Complete Heading Items
Enter tax year 2024 or fiscal year dates. Check applicable boxes for address change, name change, initial return, final return, amended return, or application pending. Provide the organization name, employer identification number, telephone number, and group exemption number if applicable. Select an accounting method. Provide website address. Check tax-exempt status as section 501(c)(3), other section 501(c), section 4947(a)(1), or section 527. Indicate the form of organization. Verify gross receipts calculation in Item L.
Step 3: Gather Documentation
Collect Forms W-2 for employees and Forms 1099-NEC and 1099-MISC for independent contractors. Gather contribution receipts, program service revenue records, membership dues documentation, investment income records, asset sale records, gaming and fundraising event records, and inventory sales data. Prepare balance sheet documentation for beginning- and end-of-year positions.
Step 4: Report Revenue
Report contributions, gifts, and grants on line 1. Report program service revenue on line 2. Report membership dues on line 3. Report 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. Attach Schedule G if gaming income exceeds $15,000 or if combined fundraising event income and contributions exceed $15,000. Report inventory sales on lines 7a through 7c. Report other revenue on line 8. Calculate total revenue on line 9.
Step 5: Report Expenses
Report grants paid on line 10. Report member benefits on line 11. Report salaries, other compensation, and employee benefits on line 12. This includes all officers, directors, trustees, key employees, and other employees. Include Form W-2 amounts and Form 1099-NEC box 1 for independent contractors. Report professional fees on line 13. Report occupancy, rent, utilities, and maintenance on line 14. Report 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.
Step 6: Calculate Net Assets
Enter beginning net assets from the prior year, line 27 column A on line 19. Report other changes in net assets on line 20, along with the Schedule O explanations. Calculate ending net assets on line 21 by combining lines 18, 19, and 20. Line 21 must agree with line 27 column B.
Step 7: Complete Balance Sheet
Report cash, savings, and investments on line 22 for both 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.
Step 8: Describe Program Accomplishments
Describe the primary exempt purpose. For each of the three most extensive program services, describe services provided, persons benefited, and expenses on lines 28a, 29a, and 30a. Check boxes if foreign grants are included. Describe other programs on line 31. Calculate total program service expenses on line 32. This section is required for section 501(c)(3) and section 501(c)(4) organizations.
Step 9: Complete Part IV and Part V
List all officers, directors, trustees, and key employees in Part IV with name, title, hours per week, compensation, health benefits, and other compensation. All filers must complete Part IV.
Answer all Part V questions regarding significant activities, unrelated business income, political expenditures, loans to officers, 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. Attach Schedule L if excess benefit transactions occurred or if there were loans to interested persons.
Step 10: Complete Part VI and Attach Schedules
Section 501(c)(3) organizations answer Part VI questions 47 through 49b. Respond to the lobbying questions on line 47 and complete Schedule C Part II if applicable. Answer 'school status' on line 48 and complete Schedule E, if applicable. Answer related organization questions on lines 49a and 49b. Complete line 50 for the five highest compensated employees over $100,000. Complete line 51 for the five highest compensated independent contractors over $100,000. Confirm Schedule A attachment on line 52.
Attach Schedule O when supplemental information is needed. Attach Schedule B for contributors with $5,000 or more. Section 501(c)(3) organizations use the greater of $5,000 or the 2 percent test. Attach Schedule G if gaming or fundraising thresholds are exceeded. Attach Schedule C for political activities. Attach Schedule N for liquidation or significant asset disposition.
Sign and date the return. The authorized officer must sign under penalties of perjury. Paid preparer must sign if applicable. File electronically by the 15th day of the 5th month after year-end. Calendar-year filers must file by May 15, 2025. Request an extension using Form 8868 if needed.
Penalties and Compliance
Electronic filing is mandatory. 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 $25 to $125 per day, depending on gross receipts, with maximums of $12,500 to $63,500. Incomplete returns may result in fines. Organizations must maintain records for a minimum of three years from the later of the filing date or the due date.
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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.
