Form 990-EZ Tax Year 2011 Filing Checklist
Understanding 2011 Form 990-EZ Changes
The 2011 Form 990-EZ maintains filing thresholds that require organizations to have gross receipts of less than $200,000 and total assets of less than $500,000. Part IV compensation reporting introduced a $10,000-per-item exclusion for other compensation under Column E, reducing the reporting burden for small-value benefits. The 2011 instructions eliminated the requirement to list street addresses of officers, directors, and trustees.
Year-Specific Tax Provisions
Tax relief rules from 2001 and 2003, which were extended until 2012 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, were still in place but did not add any specific sections or forms for people filing Form 990-EZ. 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.
Form 990-EZ Eligibility Requirements
Organizations must have gross receipts less than $200,000 and total assets less than $500,000 to qualify. Both conditions must be met simultaneously. 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) nonprofit health insurance issuers 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, and hospital operators. 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, 2011, or fiscal year-end.
3. Complete Heading Items
Enter tax year as 2011 calendar year or specify fiscal year dates. 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. 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 and 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. 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 total assets on line 25 column B—if $500,000 or more, file Form 990 instead. 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. Check 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. Column A contains a name without a 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. Question 35c, new for 2011, addresses section 6033(e) requirements for 501(c)(4), 501(c)(5), or 501(c)(6) organizations. 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, 2012. Request an automatic three-month extension using Form 8868. Request an additional three-month extension if necessary, provided there is reasonable cause. Mail to Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0027.
Key 2011 Form Changes
Column d heading expanded to include health benefits in addition to contributions to employee benefit plans and deferred compensation. The column heading has been changed to “Estimated Amount of Other Compensation” with a new $10,000-per-item exclusion, reducing the reporting burden. Street addresses are no longer required for officers, directors, trustees, and key employees.
Line 35c was added to distinguish the section 6033(e) notice and proxy tax requirements from unrelated business income reporting. Compensation must be reported for the calendar year ending with or within the organization’s tax year. Option 2’s compensation reporting method, in effect before 2008, has been eliminated.
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.
No itemized deductions permitted—use standardized categories or Schedule O. 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.
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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.
