Form 990-EZ Instructions for 2023: A Step-By-Step Guide
Form 990-EZ Instructions - How to Fill Out Form 990-EZ?
- Updated September 26, 2024 - 2.00 PM - Admin, Tax990
Organizations classified under IRC section 501(c), 527, or 4947(a)(1) (excluding private foundations) with gross receipts under $200,000 and total assets under $500,000 must file Form 990-EZ (Short Form Return of Organization Exempt From Income Tax).
The due date for filing Form 990-EZ is typically the 15th day of the 5th month after the end of the organization's tax period. However, for organizations operating on the calendar tax year, the deadline may vary based on the end of the organization’s tax year. In case additional time is needed, organizations can file Form 8868 to request a 6-month automatic extension.
Tax990 offers a simple solution to e-file Form 8868 and obtain the extension seamlessly. E-file 8868 Now
This article provides step-by-step instructions on how to complete Form 990-EZ.
IRS Form 990-EZ Instructions for 2024 Tax Year
Form 990-EZ (Short Form) requires basic organization information and financial details. This form is divided into 6 parts, and here are the instructions on how to complete each part:
Basic Organization Information
At the beginning of the form, you need to provide the essential information about your organization. Including,
A. Start and end dates of the corresponding tax year
B. Indicate if any of the following conditions applies
Address change
Name change
Initial return
Final return/terminated
Amended return
Application pending
C. Name of organization
D. Employer identification number (EIN)
E. Telephone number
F. Group Exemption Number
G. Accounting Method:
Cash
Accrual
Other
H. Indicate if your organization is not required to attach Form 990 Schedule B
I. Website of your organization
J. Tax-exempt status (check the applicable section)
501(c)(3)
501(c)() - mention the number
4947(a)(1)
527
K. Type of organization
Corporation
Trust
Association
Other
L. Gross receipts & total assets determination
Note:
Some of the questions in Parts I - VI may require you to attach Form 990 Schedule O.
In the following parts, you can check the box if you’ve used Schedule O to provide additional explanations for any of the questions in the respective part.
Part I - Revenue, Expenses, and Changes in Net Assets or Fund Balances
Part I is categorized into three sections:
Revenue
Expenses
Net Assets
Revenue (Lines 1 - 9):
In this section, you are required to report the revenue generated by your organization from different sources during the tax year.
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Lines 1 to 8:
Mention the amount of revenue generated as contributions, gifts, program service revenue, membership dues and assessments, net income, or loss from gaming and fundraising events and from other sources (described in Schedule O).
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Line 9:
Add all the revenue reported and determine the total amount of revenue.
Expenses (Lines 10 - 17):
After reporting the revenue, report all the expenses incurred by your organization during the tax year.
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Lines 10 to 16:
Mention the expenses made as grants and similar amounts paid, as well as members’ benefits, salaries, other compensation, employee benefits, printing, publications, postage, shipping, and other expenses (Must be described in Schedule O).
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Line 17:
Add all the expenses reported and mention the total amount of expenses.
Net Assets (Lines 18 - 21):
This is the last section of Part I. Here, you can report details about your organization’s net assets.
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Lines 18 to 20:
Enter the net assets or fund balances as of the beginning of the tax year. If there have been any changes during the tax year, provide a detailed explanation in Schedule O.
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Line 21:
Add lines 18 through 20 to determine the value of net assets or fund balances at the end of the tax year.
Part II - Balance Sheet
In this section, you need to report your organization’s assets and liabilities as follows:
Column A (Beginning of Year): Enter the values for each asset and liability at the start of the tax year.
Column B (End of Year): Enter the values for each asset and liability at the end of the tax year.
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Lines 22 - 24:
Mention the values of cash, savings, investments, properties owned by the organization, and other assets.
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Lines 25 and 26:
Enter the total assets and liabilities.
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Line 27:
Enter the value of net assets or fund balances (Should match the value entered on Line 21).
Part III - Statement of Program Service Accomplishments
Activities conducted to advance your organization’s exempt purpose during the tax year are referred to as Program Service Accomplishments.
In this section, you’re required to mention your organization’s primary exempt purpose and provide information regarding those program service accomplishments your organization has conducted.
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Lines 28 - 30:
Provide details about any three of the largest program services conducted during the tax year.
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Lines 31:
If your organization conducted additional program services, list them and provide a detailed explanation in Schedule O.
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Lines 32:
Enter the total expenses incurred by your organization on program service accomplishments.
Note:
Organizations classified under sections 501(c)(3) and 501(c)(4) must report the amounts of grants, expenses, and revenue associated with each program service.
Part IV - List of Officers, Directors, Trustees, and Key Employees
This part includes a table where you must provide details about your organization’s Officers, Directors, Trustees, and Key Employees.
In the table, you need to provide the following details:
Name and title
Average hours per week
Compensation (Forms W-2/1099-NEC), if not paid, enter -0-
Health benefits, contributions to employee benefit plans, and deferred compensation
Estimated Amount of other compensation
Part V - Other Information
In this part, you need to answer a series of ‘Yes’ or ‘No’ questions about your organization's activities.
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Line 33:
Indicate whether your organization has participated in any significant activities that were not previously reported to the IRS.
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Line 34:
Indicate whether you’ve made any significant changes to the organization or governing documents.
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Lines 35 to 38:
Report details about your organization's unrelated business income ($1000 or more), liquidation, dissolution, termination, or significant disposition of net assets, political expenditures, and 1120-POL filing requirements.
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Lines 39 to 40:
If your organization is categorized under Section 501(c)(7), you should enter details about the Initiation fees, capital contributions, and gross receipts for public use of club facilities.
If your organization is categorized under Section 501(c)(3), 501(c)(4), and 501(c)(29), mention if you have engaged in any section 4958 excess benefit transaction during the current year or prior year.
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Lines 41 - 46:
Enter the details about your organization’s state filing requirements, location of books and records, foreign financial accounts, and the amount of tax-exempt interest.
Answer ‘Yes’ and reference Form 990 Schedule R if your organization has a controlled entity or is involved in transactions with a controlled entity under section 512(b)(13).
Mention if your organization has participated in political campaign activities, maintained donor-advised funds, or operated any hospital facilities.
Part VI - Section 501(c)(3) Organizations Only
This part only needs to be completed by organizations that fall under Section 501(c)(3).
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Lines 47 - 49: (“Yes or “No” questions)
Mention your organization’s involvement in lobbying activities and any transfers made to an exempt non-charitable related organization. If your organization is a school described in section 170(b)(1)(A)(ii), Answer ‘Yes’ and attach Schedule E.
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Line 50:
Report the details of the organization’s five highest compensated employees (other than officers, directors, trustees, and key employees) who each received more than $100,000 of compensation from the organization.
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Line 51:
Report the details of the organization’s five highest compensated independent contractors who each received more than $100,000 of compensation from the organization.
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Line 52:
Mention if your organization is required to attach Schedule A or not. (All 501(c)(3) organizations must attach Schedule A).
Signature and Paid Preparer
Once completed, your return must be signed by one of your organization’s officers such as President, Vice president or other authorized members. If your 990-EZ return is prepared by a paid preparer, provide their details in this part.
Additional Filing Requirements for Form 990-EZ
Organizations that file Form 990-EZ may be required to provide additional information through various Schedules.
There are 8 different types of 990 schedules may be attached to Form 990-EZ based on your organization type, financial status, and activities.
Schedule A - Public Charity Status & Public Support
Schedule B - Schedule of Contributors
Schedule C - Political Campaign and Lobbying Activities
Schedule E - Schools
Schedule G - Supplemental Information
Schedule L - Transactions with Interested Persons
Schedule N - Liquidation, Termination, Dissolution, or Significant Disposition of Assets
Schedule O - Supplemental Information to Form 990
Tax990 is Here to Make Your 990-EZ Filing Easier!
Tax990, your IRS-authorized 990 e-filing solution provider, makes filing Form 990-EZ effortless with our exclusive features.
Flexible Filing Methods: Choose between Form-based and Interview-Style options that suit your preference.
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Internal Audit Check: Our built-in audit tool reviews your form for IRS instruction errors and lets you correct them before submission.
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How to file your Form 990-EZ electronically?
Get Started with Tax990 to prepare and e-file your Form 990-EZ with the IRS. Follow these 5 simple steps to e-file your form 990-EZ with Tax990:
Step 1: Add Organization Details
Enter your organization’s details manually or allow our system to import them from the IRS using your EIN.
Step 2: Choose Tax Year
Tax990 supports filing for the current and previous years. Choose the tax year for which you are filing and then select Form 990-EZ
Step 3: Complete Form 990-EZ Details
Provide all the necessary information to complete your Form 990-EZ.
Step 4: Review your Form Information
Review the completed form to ensure all details are accurate before proceeding.
Step 5: Transmit directly to the IRS
Once you’ve reviewed and verified your information, transmit Form 990-EZ directly to the IRS.
Step 1
Add Organization Details
Enter your organization’s details manually or allow our system to import them from the IRS using your EIN.
Step 2
Choose Tax Year
Tax990 supports filing for the current and previous years. Choose the tax year for which you are filing and then select Form 990-EZ
Step 3
Complete Form 990-EZ Details
Provide all the necessary information to complete your Form 990-EZ.
Step 4
Review your Form Information
Review the completed form to ensure all details are accurate before proceeding.
Step 5
Transmit directly to the IRS
Once you’ve reviewed and verified your information, transmit Form 990-EZ directly to the IRS.
Article Sources
IRS Form 990-EZ: https://www.irs.gov/pub/irs-pdf/f990ez.pdf
IRS about Form 990-EZ: https://www.irs.gov/forms-pubs/about-form-990-ez
IRS Form 990-EZ instructions: https://www.irs.gov/pub/irs-pdf/i990ez.pdf