IRS Form 990 – In the world of nonprofit and tax-exempt organizations, maintaining compliance with the Internal Revenue Service (IRS) is crucial for preserving tax-exempt status and ensuring transparency. One of the key tools for this is IRS Form 990, officially known as the Return of Organization Exempt From Income Tax. This form serves as an annual information return that provides the IRS and the public with detailed insights into an organization’s finances, governance, and activities. Whether you’re running a charity, political organization, or charitable trust, understanding Form 990 is essential to avoid penalties and demonstrate accountability.
What Is IRS Form 990?
IRS Form 990 is an annual filing required for most tax-exempt organizations under section 501(a) of the Internal Revenue Code, nonexempt charitable trusts treated as private foundations under section 4947(a)(1), and section 527 political organizations. It reports on the organization’s mission, programs, finances, governance practices, and compliance with tax laws. Unlike a standard tax return, Form 990 doesn’t calculate taxes owed but instead promotes transparency by making much of the information publicly available.
The form is divided into several parts, including:
- Part I: Summary – A high-level overview of the organization’s mission, activities, revenue, expenses, and net assets.
- Part II: Signature Block – Certification by an authorized officer.
- Part III: Statement of Program Service Accomplishments – Details on the organization’s largest programs by expenses.
- Part IV: Checklist of Required Schedules – Determines which additional schedules (A through R) must be attached based on activities like lobbying, foreign operations, or fundraising.
- Part V: Statements Regarding Other IRS Filings and Tax Compliance – Covers related filings like Form 990-T for unrelated business income.
- Part VI: Governance, Management, and Disclosure – Questions on policies, such as conflict of interest and whistleblower procedures.
- Part VII: Compensation – Reports on officers, directors, key employees, and highest-paid contractors.
- Part VIII: Statement of Revenue – Breaks down sources like contributions, program services, and investments.
- Part IX: Statement of Functional Expenses – Allocates expenses across program services, management, and fundraising.
- Part X: Balance Sheet – Assets, liabilities, and net assets.
- Part XI: Reconciliation of Net Assets – Explains changes in net assets.
- Part XII: Financial Statements and Reporting – Details on accounting methods and audits.
Additional schedules provide deeper details on specific areas, such as Schedule A for public charity status or Schedule H for hospitals.
Form 990 also helps states with regulatory oversight and allows donors to assess an organization’s efficiency and impact.
Who Must File IRS Form 990?
Not all tax-exempt organizations file the full Form 990. Filing depends on gross receipts and assets:
| Organization Type | Filing Requirement |
|---|---|
| Organizations with gross receipts ≥ $200,000 or total assets ≥ $500,000 | Must file full Form 990. |
| Organizations with gross receipts < $200,000 and total assets < $500,000 | Can file Form 990-EZ (Short Form). |
| Organizations with gross receipts ≤ $50,000 | File Form 990-N (e-Postcard), an electronic notice. |
| Section 527 political organizations | File Form 990 or 990-EZ if gross receipts ≥ $25,000 (or ≥ $100,000 for qualified state/local). No 990-N option. |
| Section 4947(a)(1) nonexempt charitable trusts | File Form 990 unless treated as private foundations (which file Form 990-PF). |
| Black lung benefit trusts (Section 501(c)(21)) | File Form 990 (or 990-EZ if eligible). |
Exceptions include churches, religious orders, government-affiliated entities, certain foreign organizations with limited U.S. activity, and private foundations (which use Form 990-PF). Organizations pending tax-exempt status should file Form 990 and check the “Application pending” box.
Group returns allow a central organization to file on behalf of subordinates under a group exemption, aggregating data while listing each entity’s details.
Types of Form 990 Returns
The IRS offers tiered forms to simplify filing for smaller organizations:
- Form 990: The full version for larger organizations, requiring detailed financials and schedules.
- Form 990-EZ: A shorter form for mid-sized groups, with fewer lines but similar core requirements.
- Form 990-N: A simple online postcard for tiny organizations, confirming basic info like name, address, and confirmation of low receipts.
- Form 990-PF: For private foundations, focusing on investments and distributions (not covered here).
Organizations can choose a more detailed form if preferred, but electronic filing is mandatory for Forms 990 and 990-EZ for tax years ending July 31, 2021, and later.
Filing Requirements and Deadlines
Form 990 must be filed electronically through an IRS-authorized e-file provider. The due date is the 15th day of the 5th month after the organization’s accounting period ends (e.g., May 15 for calendar-year filers ending December 31). A six-month extension is available via Form 8868, but no further extensions are granted.
Key requirements:
- Use whole dollars and round appropriately.
- Report in U.S. dollars for foreign organizations.
- Include disregarded entities and proportionate shares of joint ventures.
- Attach required schedules based on Part IV checklist.
- For amended returns, check the “Amended” box and refile completely.
- Final returns for terminating organizations require Schedule N.
Organizations must make Form 990 available for public inspection, including via their website or upon request (with reasonable fees for copies).
How to Complete IRS Form 990?
Completing Form 990 involves gathering financial records, governance documents, and program details. Follow this sequence for accuracy:
- Fill the heading (organization info, EIN, principal officer).
- Identify related organizations and compensation.
- Complete financial sections (Parts VIII–X).
- Detail programs (Part III) and compliance (Parts V–VI).
- Check for schedules (Part IV).
- Summarize (Part I) and sign (Part II).
Use accrual or cash accounting consistently, and explain changes on Schedule O. Allocate expenses functionally (program, management, fundraising) with documented methods. Report noncash contributions at fair market value and substantiate donations over $250.
For complex areas like compensation, include reportable amounts from W-2/1099 forms, plus other compensation from related organizations. Thresholds trigger schedules, such as >$15,000 in fundraising fees for Schedule G.
Penalties for Non-Compliance
Failure to file on time or accurately can result in:
- Late filing penalties: $25 per day (up to $13,000) for organizations with receipts ≤ $1.3 million; higher for larger groups.
- Responsible person penalties: $10 per day (up to $6,500) for those causing non-filing.
- Automatic revocation of tax-exempt status after three consecutive years of non-filing.
- Additional penalties for incomplete returns, false information, or excess benefit transactions (up to 200% tax on disqualified persons).
Reinstatement may require Form 1023/1024 and fees.
Where to Find IRS Form 990 and Instructions?
Download the latest Form 990 from the IRS website at https://www.irs.gov/pub/irs-pdf/f990.pdf. Instructions are available at https://www.irs.gov/pub/irs-pdf/i990.pdf. Additional resources include IRS webinars, FAQs, and the Tax Exempt Organization Search tool for viewing filed returns.
For e-filing, use authorized providers. Always check for updates, as forms are revised annually.
Recent Updates for 2026
As of January 31, 2026, no major changes are noted beyond ongoing electronic filing mandates and minor clarifications in instructions for tax year 2025. Organizations should monitor IRS announcements for any inflation adjustments to thresholds or new reporting on areas like donor-advised funds.
By staying informed and filing accurately, nonprofits can maintain their exempt status and build public trust. If you’re unsure about your filing obligations, consult a tax professional or the IRS for guidance.