Instructions for Form 990 Return of Organization Exempt From Income Tax 2023 Internal Revenue Service

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  • Instructions for Form 990 Return of Organization Exempt From Income Tax 2023 Internal Revenue Service

Versions of Form 990

Report here the total book value of all investments made primarily to accomplish the organization’s exempt purposes rather than to produce income. Examples of program-related investments include student loans and notes receivable from other exempt organizations that obtained the funds to pursue the filing organization’s exempt function. Enter the total expenses incurred by the organization in conducting meetings related to its activities. Include such expenses as facility rentals, speakers’ fees and expenses, and printed materials. Include the registration fees (but not travel expenses) paid for sending any of the organization’s staff to conferences, conventions, and meetings conducted by other organizations.

What Is the IRS Form 990?

An organization may be required to file Schedule M to report certain noncash (property) contributions; see the instructions for Schedule M on who must file. Also, an organization that files Schedule B must report certain information on noncash contributions. Some states and local governmental units will accept a copy of Form 990 or 990-EZ in place of all or part of their own financial report forms. The substitution applies primarily to section 501(c)(3) organizations, but some other types of section 501(c) organizations are also affected. If the organization uses Form 990 or 990-EZ to satisfy state or local filing requirements, such as those under state charitable solicitation acts, note the following discussions.

Under section 501(c), 527, or 4947(a)( of the Internal Revenue Code (except private foundations)

For organizations using the fund method of accounting, enter the fund balances for the organization’s current restricted and unrestricted funds. Enter the total of accounts payable to suppliers, service providers, property managers, and other independent contractors, plus accrued expenses such as salaries payable, accrued payroll taxes, and interest payable. When Schedule D (Form 990) reporting is required for any item in Part X, it is only for the end-of-year balance sheet figure reported in column (B).

I don’t want to file online. Can I print and mail my application and payment?

  • X must be listed as one of the organization’s five highest compensated employees.
  • Costs to solicit restricted or unrestricted grants to provide services to the general public should be reported in column (D).
  • An organization controlled by a controlling organization under section 512(b)(13).
  • If a tax-exempt organization has made its application for tax exemption and/or an annual information return widely available, it must notify any individual requesting a copy where the documents are available (including the address on the Internet, if applicable).
  • Thus, a tax-exempt entity that has never taken into account an item of income or deduction in determining taxable income does not have to request consent to change its method of reporting that item on Form 990.

A corporation or partnership is domestic if created or organized in the United States or under the law of the United States or of any state or territory. A trust is domestic if a court within the United States or a U.S. territory is able to exercise primary supervision over the administration of the trust, and one or more U.S. persons (or persons in territories of the United States) have the authority to control all substantial decisions of the trust. Include autographs, sports memorabilia, dolls, stamps, coins, books (other than books and publications reported on line 4 of Schedule M (Form 990)), gems, and jewelry (other than costume jewelry reportable on line 5 of Schedule M (Form 990)). Contributions received in the form of cash, checks, money orders, credit card charges, wire transfers, and other transfers and deposits to a cash account of the organization. A reimbursement or other expense allowance arrangement that satisfies the requirements of section 62(c) by meeting the requirements of business connection, substantiation, and returning amounts in excess of substantiated expenses. All funds without donor-imposed restrictions must be reported on line 27, regardless of the existence of any board designations or appropriations.

Versions of Form 990

For instance, Form 990-EZ and the standard Form 990 demand more detailed financial information and narratives about the organization’s programs, unlike the brief e-Postcard. Choosing the correct form is crucial for compliance and accurately reflecting your organization’s financial status. The Division of Corporations uses a 3rd party, NIC Services, LLC dba Tyler Payment Services, to process our credit/debit card payments for Online filings. A confirmation payment receipt will be emailed from  [email protected]  for successful transactions.

Answer “Yes” on line 14a if the organization maintained an office, or had employees or agents, or independent contractors outside the United States. For each program service reported on lines 4a–4c, section 501(c)(3) and 501(c)(4) organizations must enter total expenses included on Part IX, line 25, column (B), and total grants and allocations (if any) included within such total expenses that were reported on Part IX, lines 1–3, column (B). If an organization has gross receipts less than $200,000 and total assets at the end of the tax year less than $500,000, it can choose to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, instead of Form 990.

Versions of Form 990

A charity that knowingly provides a false substantiation acknowledgment to a donor may be subject to the penalties under section 6701 and/or section 7206(2) for aiding and abetting an understatement of tax liability. Separate contributions of less than $250 aren’t subject to the requirements of section 170(f)(8), whether or not the sum of the contributions made by a taxpayer to a donee organization during a tax year equals $250 or more. If the organization receives a quid pro quo contribution of more than $75, the organization must provide a disclosure statement to the donor.

  • If you are filing a 2023 Form 990, you are required to file electronically.
  • If an organization files an amended return, however, the amended return must be made available for a period of 3 years beginning on the date it is filed with the IRS.
  • Form 990, Part VII, requires the listing of the organization’s current or former officers, directors, trustees, key employees, and highest compensated employees, and current independent contractors, and reporting of certain compensation information relating to such persons.
  • Special rules apply for reporting reportable compensation and other compensation.

Tax Policy Outlook: Defining the choices ahead

Don’t include cash balances held in an investment account with a financial institution and reported on lines 11 through 13. Don’t include advances to employees or officers or refundable deposits paid to suppliers or other independent contractors. Enter the amount of federal, state, and local payroll taxes for the year but only those taxes that are imposed on the organization as an employer. This includes the employer’s share of social security and Medicare taxes, the federal unemployment tax (FUTA), state unemployment compensation taxes, and other state and local payroll taxes. Don’t include on line 10 taxes withheld from employees’ salaries and paid to various governmental units such as federal, state, and local income taxes and the employees’ shares of social security and Medicare taxes. Compensation for Part IX is reported based on the accounting method and tax year used by the organization, rather than the definitions and calendar year used to complete Part VII or Schedule J (Form 990) regarding compensation of certain officers, directors, trustees, and other employees.

Other potentially exempt organizations include state institutions or government corporations. If you think your organization might be exempt, be sure to double-check with the IRS for the full list of exceptions. The annotated forms and instructions show what changes the IRS has made for tax year 2021. These documents (attached to this Alert) highlight and explain changes from tax year 2020.

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