What Form 990 (2011) Is For
Form 990 (2011) is the annual return required for tax-exempt organizations under Section 501(a) of the Internal Revenue Code. It provides a detailed view of an organization’s financial status, governance structure, and operations throughout its tax year. This report promotes transparency between the organization, its donors, and the IRS, ensuring accountability across the nonprofit sector.
The form includes details such as annual gross receipts, total expenses, and compensation for officers and key employees. It also shows how board members oversee financial and operational practices. Unlike income tax filings, Form 990 discloses financial and governance information rather than determining tax owed.
Learn which nonprofit and exempt organization forms you need to file.
When You’d Use Form 990 (2011)
Organizations are required to file Form 990 when their annual gross receipts are $200,000 or more, or when total assets exceed $500,000 at the end of the tax year. The form serves as a yearly return for tax-exempt organizations, ensuring transparency and continued compliance with IRS regulations. Most nonprofits, including public schools and private foundations, are required to file based on their organization’s fiscal year or calendar year.
Filing Deadlines and Extensions
Form 990 is due on the 15th day of the fifth month after the end of the fiscal year. Calendar-year filers typically submit their returns by May 15, while fiscal-year filers adjust their submission dates based on their accounting period. An extension request may be made using Form 8868, and a second may be approved if reasonable cause exists. Organizations that fail to file for three consecutive years risk losing their tax-exempt status.
Key Rules or Details for Form 990 (2011)
Form 990 for 2011 introduced several filing requirements that every tax-exempt organization must understand. These rules defined which entities needed to file, the applicable thresholds for annual gross receipts, and additional reporting requirements for the year. Compliance with these standards ensures that organizations maintain their tax-exempt status and provide accurate financial disclosures.
- Filing Thresholds: Organizations with annual gross receipts of $200,000 or total assets of $500,000 are required to file the complete Form 990 to meet reporting requirements.
- Simplified Filings: Small organizations with gross receipts under $50,000 may submit Form 990-N (e-Postcard) to satisfy their filing obligation.
- Electronic Submission: Large organizations with $10 million or more in assets and 250 or more filings are required to e-file to remain in compliance with IRS requirements.
- Schedule O Requirement: All filers must include complete explanations for governance policies and financial disclosures in Schedule O.
- Foreign Activity Reporting: Organizations with foreign investments of $100,000 or more must complete Schedule F to report those activities accurately.
Step-by-Step (High Level)
Completing Form 990 for 2011 requires careful attention to financial reporting, accurate documentation, and a thorough understanding of filing requirements. Each organization must ensure that all records reflect the correct accounting period, total assets, and annual gross receipts. Following a precise sequence helps maintain compliance and prevents errors that could delay approval or compromise tax-exempt status.
- Step 1 - Confirm Eligibility: Each organization must determine whether it meets the filing thresholds for Form 990, Form 990-EZ, or Form 990-N.
- Step 2 - Gather Financial Data: The organization should collect all revenue, expense, and compensation records for officers and board members.
- Step 3 - Complete the Core Form: The filer must complete financial details, governance sections, and all required schedules accurately.
- Step 4 - Verify Filing Deadlines: The filer should use the 15th day of the fifth month following the end of the fiscal year as the filing due date.
- Step 5 - Submit the Return: The organization must file electronically and retain a copy for its records.
Common Mistakes and How to Avoid Them
Form 990 2011 requires careful review before submission to maintain compliance and preserve tax-exempt status. Many organizations face issues that can be avoided through consistent recordkeeping and internal checks.
- Missing Schedule O: Each filer must include Schedule O for narrative disclosures and verify that every required explanation is complete and accurate.
- Incorrect Compensation Reporting: The filer should verify that reported figures match those on W-2s or 1099s to ensure accuracy for officers and board members.
- Incorrect Form Filed: The organization must review its eligibility to confirm which form to use: Form 990, Form 990-EZ, or Form 990-N.
- Inconsistent Financial Data: The filer should reconcile all return figures with audited financial statements before filing.
- Unreported Relationships: The organization must list all related entities and confirm that public support calculations are correct.
What Happens After You File
Once submitted, Form 990 2011 becomes a public record accessible to donors, regulators, and the general public. The IRS publishes filed returns online, providing transparency into a nonprofit’s financial status and governance. Certain sections, such as Schedule B donor lists, remain private for most tax-exempt organizations to protect the confidentiality of contributors.
The IRS reviews filed forms to ensure compliance and may select returns for audit if irregularities appear. Many states also use Form 990 to meet their charitable registration requirements. Organizations must keep their three most recent returns available for public inspection. If you’re unsure how your filing affects compliance, our team can review your case to provide guidance and clarification.
Frequently Asked Questions
What organizations must file Form 990 for 2011?
Tax-exempt organizations must file Form 990 for 2011 with annual gross receipts of $200,000 or more, or total assets exceeding $500,000 at the end of the tax year. Most nonprofits, including public schools, private foundations, and integrated auxiliaries, are required to file to maintain their tax-exempt status.
When is Form 990 due for filing?
Form 990 is due on the 15th day of the fifth month after the end of the organization’s fiscal year. For calendar tax year filers, the due date typically falls on May 15, while budgetary year filers should verify deadlines using a due date calculator to prevent missed submissions.
Can small organizations use Form 990-EZ or Form 990-N?
Small organizations with gross receipts of less than $200,000 or assets of less than $500,000 are eligible to use Form 990-EZ. Nonprofits with annual gross receipts of $50,000 or less can file the Form 990-N, also known as the e-Postcard, to meet their filing requirements.
What happens if a nonprofit fails to file Form 990 for three consecutive years?
If a nonprofit fails to file Form 990 for three consecutive years, the IRS automatically revokes its tax-exempt status. Reinstatement requires submitting new IRS forms and demonstrating reasonable cause for previous noncompliance.
How can organizations amend or correct a previously filed return?
To correct errors, an organization must file an amended annual return using the same tax year’s form. The revised form should include explanations on Schedule O describing updates to financial status, assets, or other reported data.
