What IRS Form 990 (2020) Is For

IRS Form 990 (2020) is the annual tax return that organizations exempt from income tax are required to file. It reports gross income, earned income, unearned income, and net earnings to verify compliance with federal tax laws. The information helps determine if a taxpayer or nonprofit continues to qualify for exempt status, confirming wages, money received, and taxes paid during the year.

Each taxpayer must file a return that accurately reflects their correct filing status, which can be single, married filing jointly, or married filing separately as a qualifying surviving spouse. One spouse or both may be responsible for reporting income, dependents, and household information. Organizations must meet all filing requirements and adhere to the due dates set by the IRS.

When You’d Use IRS Form 990 for 2020

Organizations file IRS Form 990 for 2020 to report income, wages, and financial details for the year. The form confirms compliance with federal tax laws and determines whether the organization remains exempt from income tax. Filing on time ensures accuracy, transparency, and continued eligibility for exempt status.

Filing Circumstances

Entities file a return when their gross income, unearned income, or net earnings meet the IRS filing requirement. One spouse or both may file jointly or separately, depending on their filing status or household income.

Filing Deadlines and Conditions

The due date for most organizations is the 15th day of the fifth month following the end of the tax year. Late filings occur when forms are missing, incomplete, or need correction under specific circumstances.

Key Rules or Details for 2020

The 2020 IRS Form 990 includes several key rules that help organizations comply with federal tax laws. Each taxpayer or exempt entity must file accurately and comply with all income and filing requirements to maintain its tax-exempt status.

• Electronic Filing Requirement: Most organizations were required to file a return electronically under the updated tax laws.
  
  
• Penalty Thresholds: Smaller entities faced daily penalty rates for late filing or incomplete forms.
  
  
• Form 1099-NEC: This form is used to report nonemployee compensation that affects net earnings.
  
  
• Public Disclosure: Returns must remain available for public inspection to ensure transparency.
  
  
• Record Retention: Keep all tax return copies, income records, and employer payments for at least three years.

Step-by-Step: How to File IRS Form 990 (2020)

Filing IRS Form 990 for 2020 requires careful organization to meet federal tax laws and IRS filing requirements. Each taxpayer or exempt organization must accurately report income, wages, and employer payments. Following these steps helps ensure compliance and prevents unnecessary penalties.

1. Gather Records: The taxpayer collects financial statements, wage reports, and income documentation for the filing year.
   
   
2. Confirm Filing Status: The filer determines whether the organization qualifies as tax-exempt and identifies the correct form type to use.
   
   
3. Enter Income Details: The taxpayer carefully records gross income, unearned income, and net earnings.
   
   
4. Complete Required Schedules: The filer attaches all forms related to dependents, money received, and self-employment income.
   
   
5. File Electronically: The taxpayer submits the return through IRS-approved software and keeps copies for at least three years.

Common Mistakes and How to Avoid Them

Filing IRS Form 990 (2020) requires precision, as minor oversights can create delays, trigger notices, or increase the risk of compliance issues. Each taxpayer or exempt organization must ensure all the necessary information—such as income totals, filing dates, and dependent data—is accurate before submission. Precise recordkeeping and timely review help avoid costly errors.

• Using the Wrong Form Year: Always complete the 2020 version of the tax return when filing for that tax year.
  
  
• Missing Schedules: Review each section thoroughly and attach all required schedules before submitting the form.
  
  
• Unsigned Returns: Confirm that an authorized officer or one spouse signs the return to finalize filing.
  
  
• Incorrect Income Totals: The filer verifies gross income, wages, and net earnings for accuracy.
  
  
• Late Filing: File a return before the due date to prevent daily penalty charges.

What Happens After You File IRS Form 990 (2020)

After submitting IRS Form 990 (2020), the IRS reviews the return to confirm accuracy and verify compliance with federal tax laws. Processing times depend on when the form was filed and whether the return includes all required information. Taxpayers receive confirmation once their electronic filing is accepted.

If errors or missing data are found, the IRS may send a correction notice requesting an updated return. Late submissions may result in penalty letters or payment requests. Maintaining complete records of income, wages, and dependents ensures smoother review and prevents compliance delays during future filings.

Frequently Asked Questions About IRS Form 990 (2020)

Who must file IRS Form 990 (2020)?  

Organizations that are exempt from income tax must file IRS Form 990 for 2020 when their gross income or total assets meet the required thresholds. The form reports earned income, unearned income, wages, and other forms of income received throughout the year, ensuring compliance with federal tax laws.

What is the filing requirement and due date for this tax return?

Each taxpayer must file a return by the due date, which is the 15th day of the fifth month following the end of the tax year. Extensions may be applied for under specific circumstances, but late filing can result in penalties or interest for unpaid taxes.

Can married filing jointly or surviving spouses file Form 990 together?

Form 990 applies to organizations, not individuals. Married filing jointly or qualifying surviving spouse statuses are personal tax filing classifications, while exempt entities file under their own Employer Identification Number.

What happens if one spouse files separately or the form is late?

When one spouse files a separate return or a form is submitted late, the IRS may assess penalties until the filing requirement is met. Timely and accurate filing ensures compliance and avoids payment delays or wage-related issues.

Where can taxpayers find more help with Form 990?

Taxpayers can access professional services or IRS-approved guidance for assistance with Form 990 filing requirements, refund claims, or questions about self-employment tax. Reliable information helps determine eligibility, filing status, and the correct process for each organization’s circumstances.