Form 990 Resources and Tools Internal Revenue Service

Form 990

Goods or services may be similar or comparable even though they don’t have the unique qualities of the goods or services that are being valued. Corporation K makes a $50,000 payment to J and in return, J offers K’s employees free admission, a t-shirt with J’s logo that costs J $4.50, and a 25% gift shop discount. Because the free admission is a privilege that can be exercised frequently and is offered in both benefit packages, and the value of the t-shirts is insubstantial, Museum J’s disclosure statement need not value or mention the free admission benefit or the t-shirts. However, because the 25% gift shop discount to K’s employees differs from the 10% discount offered in the basic membership benefits package, J’s disclosure statement must describe the 25% discount, but need not estimate its value. If a taxpayer makes a payment to a charitable organization in a fundraising campaign and receives benefits with an FMV of not more than 2% of the amount of the payment, or $117, whichever is less, the benefits received have insubstantial value in determining the taxpayer’s contribution. A donee organization reports all income from donated qualified intellectual property as income other than contributions (for example, royalty income from a patent).

Sales of inventory items reportable on line 10a are sales of items that are donated to the organization, that the organization makes to sell to others, or that it buys for resale. Sales of inventory don’t, however, include the sale of goods related to a fundraising event, which must be reported on line 8. Sales of investments on which the organization expected to profit by appreciation and sale aren’t reported here.

Form 990: Return of Organization Exempt from Income Tax Overview

Organizations must report compensation for both current and former officers, directors, trustees, key employees, and highest compensated employees. The distinction between current and former such persons is discussed below. Certain federal or state laws provide protection against whistleblower retaliation and prohibit destruction of certain documents. Also note that an organization is required to keep books and records relevant to its tax exemption and its filings with the IRS.

Use the 2022 Form 990 to report on the 2022 calendar year accounting period. A calendar year accounting period begins on January 1 and ends on December 31. If an organization eligible to submit the Form 990-N or file the Form 990-EZ chooses to file the Form 990, it must file a complete return.

Your IRS Form 990 Questions Answered

In completing line 1a, the VEBA will report one voting member of the governing body. Check the box in the heading of Part VI if Schedule O (Form 990) contains any information pertaining to this part. Use Schedule O (Form 990) to provide required supplemental information as described in this part, and to provide any additional information that the organization considers relevant to this part.

For additional information on the electronic filing requirement, go If the organization is liquidated, dissolved, or terminated, file the return by the 15th day of the 5th month after liquidation, dissolution, or termination. Organizations that file Form 990 or Form 990-EZ use Schedule E to report information on private schools. However, you can only file for an extension once per return, which means you will only ever have an extra 6 months per return to make sure your paperwork is in order.

Bonus Step: You can always file for an extension.

For purposes of section 4958, any officer, director, or trustee of an applicable tax-exempt organization, or any individual having powers or responsibilities similar to officers, directors, or trustees of the organization, regardless of title. Enter the total of (a) all pledges receivable, The Industry’s #1 Legal Software for Law Firms Try it for free! less any amounts estimated to be uncollectible, including pledges made by officers, directors, trustees, key employees, and highest compensated employees; and (b) all grants receivable. Enter the total expenses incurred by the organization in conducting meetings related to its activities.

  • If you don’t file a Form 990 for three years in a row, your tax-exempt status will be automatically revoked by the IRS.
  • If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day.
  • An excess benefit transaction can also occur when a disqualified person embezzles from the exempt organization.
  • For this purpose, don’t include any investment income received from investing proceeds that are technically under the control of the governmental issuer.
  • File Form 990 by the 15th day of the 5th month after the organization’s accounting period ends (May 15th for a calendar-year filer).

All organizations (except section 527 political organizations) must complete columns (B) through (D), which must add up to the amount in column (A) for each line in Part VIII. Compensation includes fees and similar payments to independent contractors but not reimbursement of expenses unless incidental to providing the service. However, for this purpose, the organization must report gross payments to the independent contractor that include expenses and fees if the expenses aren’t separately reported to the organization. Other compensation paid to the person by a related organization at any time during the calendar year ending with or within the filing organization’s tax year should be reported in column (F). If the related organization was related to the filing organization for only a portion of the tax year, then the filing organization may choose to report only other compensation paid or accrued by the related organization during the time it was actually related. If the filing organization reports compensation on this basis, it must explain on Schedule O (Form 990) and state the period during which the related organization was related.