IRS Form 990-EZ (2019): Short Form for Tax-Exempt Orgs.
What IRS Form 990-EZ Is For
IRS Form 990-EZ (2019) serves as a simplified annual information return for tax-exempt organizations. Organizations with gross receipts under $200,000 and total assets under $500,000 are typically eligible to file this form. It provides the IRS with essential information regarding the organization's income, expenses, deductions, and operational activities, ensuring continued compliance with tax-exempt status requirements.
By filing this form correctly, organizations avoid penalties and ensure the accuracy of their records with the IRS. Filing Form 990-EZ also contributes to maintaining transparency and accountability for tax-exempt organizations.
When You’d Use IRS Form 990-EZ
IRS Form 990-EZ is used primarily by tax-exempt organizations with gross receipts under $200,000 and total assets under $500,000. Organizations must file this form for the tax year to report income, deductions, and operational activities. You should file this form if you receive IRS notices for unfiled returns or need to make amendments to an earlier submission.
Filing is necessary if there are significant changes to the organization’s income, such as receiving additional income or updating direct deposit information. Failure to file on time may result in penalties, and continued non-filing for three years may lead to the loss of tax-exempt status.
Key Rules or Details for 2019
When filing IRS Form 990-EZ for the 2019 tax year, it’s essential to follow specific guidelines for amended returns. If you discover errors after filing the original return, an amended return must be submitted using the correct 2019 version of the form. The IRS recommends electronic filing, as it ensures faster processing and secure transmission, confirmed by a secure padlock icon.
Make sure to double-check all numbers, dates, and information for accuracy before submission. Failure to use the correct version or omit required income and deductions may result in penalties. Organizations must file on time to maintain their tax-exempt status. Additionally, after 2019, electronic filing is mandatory for most returns, with paper filings accepted only in limited cases.
- Ensure all data is accurate and complete.
- Filing electronically will speed up processing.
- Dates, numbers, and deductions should be double-checked.
- The correct 2019 version of Form 990-EZ must be used.
- All income and deductions must be reported accurately.
Step-by-Step (High Level)
- Gather Documents: Collect all necessary financial records, including income tax documents, bank statements, and information on deductions.
- Select the Correct Form: Choose the correct version of Form 990-EZ for the 2019 tax year based on your organization's eligibility.
- Complete the Form: Fill out the form with accurate income, deductions, and any applicable credits. Attach the required schedules for a complete filing.
- Review for Accuracy: Carefully review the form for any missing or incorrect information. Verify numbers, dates, and income to avoid errors.
- Submit the Form: You can file electronically through IRS-approved software or mail the completed form to the IRS address specified for your region.
Common Mistakes and How to Avoid Them
When filing Form 990-EZ, many organizations make common errors that can delay processing or result in penalties. One frequent mistake is failing to attach the correct schedules, which are crucial for a complete filing. Another error is incorrectly reporting income tax deductions or omitting income, which can affect the organization’s tax status.
Verify that all information is accurate and supported by documentation. Filing electronically can reduce these errors, as it provides built-in checks for common mistakes. Always review the form carefully before submission, especially when making an amended return, to ensure all details are correct. Double-check for any missing signatures, as an unsigned form can cause delays.
What Happens After You File
After filing Form 990-EZ, the IRS will begin processing your return, which may take several weeks to months, depending on the filing method. If you filed electronically, you may receive immediate confirmation of receipt, including a locked padlock icon indicating a secure submission. If the IRS requires further information or identifies errors, you may receive a notice requesting clarification or an amended return.
In some cases, the IRS may issue penalties for incorrect or late filings, which can be appealed if reasonable cause is provided. If you are due a refund, the IRS will issue it after processing. Tracking your filing status and ensuring that your organization stays up to date with any changes will help avoid future complications.
FAQs
Can I electronically file IRS Form 990-EZ for the 2019 tax year?
Yes, you can electronically file Form 990-EZ for the 2019 tax year if your organization is eligible for electronic submissions with the IRS. Filing online is faster and ensures a more accurate submission. The IRS website provides approved software providers to help you prepare and submit the form.
What should I do if I need to file an amended return?
If you need to correct errors in your original filing, you must submit an amended return. Use the correct version of Form 990-EZ for the 2019 tax year when adding any missing information or correcting mistakes. Follow the IRS instructions to submit amended returns accurately.
How do I claim deductions on Form 990-EZ?
To claim deductions, enter the appropriate information under the deductions section of Form 990-EZ. Ensure that all supporting documentation is included to substantiate the deductions you are claiming. Double-check that all amounts are correct to avoid paying additional tax.
What happens if I owe additional tax after filing?
If you owe additional tax, the IRS will provide instructions on how to make payments. You can submit payments directly through the IRS website or request a payment plan if necessary. Make sure to follow the IRS guidelines to avoid penalties and interest.
How can I learn more about IRS Form 990-EZ?
You can learn more about IRS Form 990-EZ and the filing process by visiting the IRS website. It provides detailed instructions and examples of how to prepare the form. Additionally, subscribing to IRS updates ensures you stay informed on any changes or updates to filing requirements.
