Form 990 is the annual information return that most tax-exempt organizations must file with the Internal Revenue Service. Think of it as the nonprofit world's equivalent to a detailed financial report card that demonstrates how your organization operated throughout the year. Unlike typical tax returns that calculate taxes owed, Form 990's primary purpose is transparency—it shows the IRS, potential donors, and the general public how your exempt organization earned and spent its money while fulfilling its mission.

The form requires reporting on everything from your organization's programs and accomplishments to detailed financial data, governance practices, and compensation paid to key individuals. For the 2013 tax year, if your tax-exempt organization had gross receipts of $200,000 or more, or total assets of $500,000 or more at year-end, you needed to file the full Form 990. Smaller organizations with receipts under $200,000 and assets under $500,000 could file the simpler Form 990-EZ instead. IRS

What makes Form 990 unique is its public nature. Almost every part of your filed return becomes publicly available—the IRS must disclose it, and your organization must make it available to anyone who requests it. This transparency helps donors make informed giving decisions and ensures accountability in the nonprofit sector.

What the Form Is For

Form 990 is the annual information return that most tax-exempt organizations must file with the Internal Revenue Service. Think of it as the nonprofit world's equivalent to a detailed financial report card that demonstrates how your organization operated throughout the year. Unlike typical tax returns that calculate taxes owed, Form 990's primary purpose is transparency—it shows the IRS, potential donors, and the general public how your exempt organization earned and spent its money while fulfilling its mission.

The form requires reporting on everything from your organization's programs and accomplishments to detailed financial data, governance practices, and compensation paid to key individuals. For the 2013 tax year, if your tax-exempt organization had gross receipts of $200,000 or more, or total assets of $500,000 or more at year-end, you needed to file the full Form 990. Smaller organizations with receipts under $200,000 and assets under $500,000 could file the simpler Form 990-EZ instead. IRS

What makes Form 990 unique is its public nature. Almost every part of your filed return becomes publicly available—the IRS must disclose it, and your organization must make it available to anyone who requests it. This transparency helps donors make informed giving decisions and ensures accountability in the nonprofit sector.

When You’d Use Form 990 (Regular, Late, and Amended Filings)

Regular Filing

Form 990 for the 2013 tax year was due by the 15th day of the 5th month after your organization's accounting period ended. For calendar-year filers, this meant a May 15, 2014 deadline. Organizations with fiscal years had different deadlines based on when their year ended. IRS

Late Filing

If you missed your deadline, you should still file as soon as possible. The IRS assesses penalties of $20 per day for late filing, up to the lesser of $10,000 or 5% of your gross receipts. For larger organizations with gross receipts exceeding $1 million, the penalty increases to $100 per day with a maximum of $50,000. More critically, if your organization fails to file for three consecutive years, it automatically loses its tax-exempt status—a devastating consequence that requires reapplying for exemption from scratch. IRS

Amended Returns

Mistakes happen, and the IRS allows corrections. To amend your 2013 return, you must file a complete new Form 990 using the 2013 version, checking the "Amended return" box in the heading. You can't just submit corrections—the amended return must include all information, not just what changed. In Schedule O, you must identify which parts and schedules were amended and describe the amendments. Amended returns must be filed electronically for the 2013 tax year. Organizations should keep amended returns available for public inspection for three years from the filing date or three years from the original due date, whichever is later. IRS

Key Rules or Details for 2013

Filing Thresholds

Organizations exempt under Section 501(a) had to file if they had gross receipts of $200,000 or more OR total assets of $500,000 or more. Smaller organizations could file Form 990-EZ or submit the simple Form 990-N e-postcard if their gross receipts were normally $50,000 or less. IRS

Mandatory Electronic Filing

If your organization filed at least 250 returns of any type during the calendar year (including W-2s, 1099s, employment tax returns) AND had total assets of $10 million or more, you were required to file Form 990 electronically. Filing a paper return when electronic filing was required meant your return was considered not filed. IRS

Accounting Methods

Organizations could use the same accounting method they regularly used for their books—typically cash or accrual basis. However, the method had to clearly reflect income. Many states accepting Form 990 required accrual method reporting, and organizations could file the same accrual-basis return with the IRS even if their books used cash basis. IRS

Public Disclosure

Almost the entire completed Form 990 had to be made publicly available, with limited exceptions for contributor information on Schedule B. Both the IRS and your organization were required to provide copies to anyone requesting them. This meant social security numbers should never appear on the form since they couldn't be redacted before public disclosure. IRS

Extension Availability

Organizations could request an automatic 3-month extension using Form 8868, and potentially an additional 3-month extension for reasonable cause, giving up to 6 months total extra time to file. IRS

Step-by-Step (High Level)

Filing Form 990 involves a methodical approach across twelve parts plus applicable schedules:

Step 1: Gather Your Records

Compile your financial statements, compensation records, governance documents, and information about officers, directors, key employees, and your five highest-compensated employees. You'll need detailed revenue and expense information for the entire tax year.

Step 2: Complete the Financial Sections First

Start with Part VIII (Statement of Revenue), Part IX (Statement of Functional Expenses), and Part X (Balance Sheet). These foundational financial sections drive many calculations throughout the rest of the form. Categorize your revenue sources properly—contributions, program service revenue, investment income, and other sources each have their own reporting lines.

Step 3: Identify Your Key Personnel

Determine which individuals must be listed in Part VII, including all officers, directors, trustees, key employees, and your five highest-compensated employees who received over $100,000. Report their compensation from both your organization and related organizations.

Step 4: Complete the Checklist

Part IV guides you through which schedules you must complete based on your organization's activities. This includes Schedule A (required for 501(c)(3) organizations), Schedule B (for contributor information), and various other schedules for specific activities like political spending, foreign operations, or fundraising events.

Step 5: Address Governance and Compliance

Part VI covers your governance structure, policies, and disclosure practices. Be prepared to answer questions about conflict of interest policies, document retention, financial statement oversight, and board independence.

Step 6: Summarize Your Mission and Programs

Part III requires describing your program service accomplishments—this narrative section explains how you fulfilled your exempt purpose during the year.

Step 7: Complete Required Schedules

Based on your Part IV responses, complete all applicable schedules alphabetically. Use Schedule O for any narrative explanations or additional information that didn't fit elsewhere.

Step 8: Reconcile and Finalize

Complete Part I (Summary), which pulls key figures from other parts. If you have audited financial statements, complete Part XII and Schedule D to reconcile any differences between your books and the Form 990. Have an officer or authorized official sign Part II. IRS

Common Mistakes and How to Avoid Them

Missing or Incomplete Schedules

The most common error causing returns to be rejected is failing to attach required schedules or submitting incomplete schedules. When you check "Yes" in Part IV, you must complete and attach the corresponding schedule. Before filing, verify that every "Yes" answer has a completed schedule attached. IRS

Incomplete Parts I Through XII

Some organizations leave sections blank or fail to complete all twelve core parts of the form. Every part must be addressed—if a line doesn't apply, enter "N/A" or "0" as appropriate rather than leaving it blank. IRS

Filing the Wrong Form Version

Organizations sometimes use the wrong year's form for their tax period. Always use the 2013 Form 990 for tax years beginning in 2013. Using an incorrect form version will result in the IRS returning your submission. IRS

Incorrect Identifying Information

Double-check your Employer Identification Number (EIN), organization name, and address. Errors in basic identifying information can cause processing delays and make it difficult for the public to locate your return. IRS

Not Completing Schedule B

All organizations must complete and attach Schedule B (Schedule of Contributors) or certify that they are not required to file it. Organizations that received contributions meeting the reporting thresholds cannot omit this schedule, even though it may not be publicly disclosed. IRS

Filing Errors in Paper Returns

The error rate for paper returns is significantly higher than for electronically filed returns. Electronic filing catches many errors before submission through built-in validation checks. Consider e-filing even if not required to reduce errors and processing time. IRS

Not Filing at All

The most serious mistake is failing to file. Missing three consecutive years costs your tax-exempt status automatically. Set up a filing calendar with reminders well before deadlines, and train multiple staff members on the filing requirement so knowledge doesn't rest with one person. IRS

What Happens After You File

Public Disclosure Begins Immediately

Once the IRS processes your Form 990, it becomes publicly available. The IRS posts returns to its website, and your organization must also make copies available to anyone who requests them, either in person at your principal office or by mail within 30 days. You can charge reasonable copying and postage fees. IRS

What Must Be Disclosed

An exempt organization must make available for public inspection its annual information return (Form 990 or Form 990-EZ) including all schedules and attachments filed with the IRS. The main exception is Schedule B contributor information for most 501(c)(3) organizations, which the IRS keeps confidential. Both original and amended returns are subject to public disclosure requirements. IRS

IRS Review Process

The IRS reviews returns for completeness and accuracy. If your return is incomplete or the wrong return for your organization, the IRS will send it back with a letter explaining what's missing or incorrect. You must then correct and resubmit the return. IRS

State Filing Requirements

Some states require or permit the filing of Form 990 to fulfill state exempt organization or charitable solicitation reporting requirements. Organizations may need to submit their federal Form 990 to state agencies as part of state compliance obligations. IRS

Maintaining Annual Compliance

Filing Form 990 is an annual requirement. Start preparing for next year's return immediately by maintaining organized records throughout the year, not just at filing time. Good systems for tracking revenue, expenses, and program metrics make filing much easier and more accurate.

FAQs

1. Who needs to file Form 990 versus Form 990-EZ or 990-N?

Form 990 is required if you have gross receipts of $200,000 or more or total assets of $500,000 or more. Organizations under both thresholds can file Form 990-EZ. Organizations with gross receipts normally $50,000 or less can submit Form 990-N (e-postcard) unless they're Section 509(a)(3) supporting organizations. Sponsoring organizations of donor advised funds and controlling organizations under section 512(b)(13) must file Form 990 regardless of size. IRS

2. What if our accounting period changed during the year?

File a short period return for the period resulting from the change. Write "Change of Accounting Period" at the top. If you previously changed your accounting period within the past 10 calendar years and had a Form 990 filing requirement during that period, you must also attach Form 1128. Short period returns for 2013 could only be filed electronically if they were initial or final returns. IRS

3. Can we request an extension if we need more time?

Yes. File Form 8868 for an automatic 3-month extension. If you need additional time beyond that, you can request an additional 3-month extension (6 months total), but this requires demonstrating reasonable cause. IRS

4. What parts of Form 990 are available to the public?

Nearly everything except contributor information on Schedule B (for most 501(c)(3) organizations). This includes all financial data, compensation information, governance practices, and program descriptions. The IRS and your organization must make returns available upon request. Since returns are public, never include social security numbers. IRS

5. Do we need to file Form 990 if we're a church?

Churches, integrated auxiliaries of churches, conventions or associations of churches, and certain other religious organizations are generally exempt from filing Form 990. However, church-affiliated organizations that aren't integrated auxiliaries typically must file. Section 509(a)(3) supporting organizations must file even if they support religious organizations, unless they qualify for specific exceptions. IRS

6. What happens if we realize we made a mistake on our filed return?

File an amended return using the same year's Form 990, checking the "Amended return" box. Submit a complete return with all corrected information, not just changes. Explain what was amended in Schedule O. Amended returns must be filed electronically and kept available for public inspection. IRS

7. Can we file a group return for our chapters or affiliates?

Yes, if you're a central organization with subordinates covered by a group exemption letter. The subordinates must be affiliated with you, under your general supervision, using the same tax year, and exempt under your group exemption letter. The group return uses Form 990, not 990-EZ, and subordinates can opt to file separately instead. IRS

‍