Form 990: The Complete Return
Form 990 serves as the comprehensive annual information return for tax-exempt organizations. This longest form in the 990 series requires detailed reporting of your organization’s finances, governance, and activities during the tax year. The IRS then uses this information to evaluate your organization’s operations and ensure you’re compliant with tax-exempt status requirements.
Form 990-EZ: The Simplified Version
Form 990-EZ represents a streamlined alternative for smaller tax-exempt organizations. While it captures similar information to the full Form 990, it requires less detailed reporting and fewer schedules. This shortened version helps reduce the administrative burden on smaller nonprofits while still maintaining necessary oversight.
Key Differences Between Form 990 and 990-EZ
While both forms serve a similar purpose, there are notable distinctions between them that you should consider:
1. Filing Requirements and Thresholds
Your organization’s gross receipts and total assets determine which form you must file. Form 990-EZ is available to organizations with gross receipts less than $200,000 and total assets below $500,000. If your organization exceeds either threshold, you must file the full Form 990.
2. Reporting Requirements
The full Form 990 contains 12 comprehensive parts requiring extensive financial reporting, organizational details, and program descriptions. Form 990-EZ, with just 6 parts, requires less detailed information while still capturing essential data about your organization’s activities and finances.
3. Required Schedules
The difference in required schedules is significant. Form 990 may require up to 16 additional schedules depending on your organization’s activities. Form 990-EZ filers typically complete fewer schedules, with only 8 possible schedules that might apply.
