As a non-profit organization, staying compliant with tax regulations is crucial. One of the most important forms you need to file is IRS Form 990. This blog post will provide a comprehensive guide on how to e-file Form 990 with TaxZerone, ensuring a smooth and hassle-free filing process.

What is Form 990?

Form 990 is an annual information return that most federally tax-exempt organizations must file with the Internal Revenue Service (IRS). It provides information about the organization’s mission, programs, finances, and governance practices.

Who Must File Form 990?

Most tax-exempt organizations, including charitable organizations, social welfare organizations, labor unions, and trade associations, are required to file 990 annually. However, there are exceptions for certain types of organizations, such as churches and organizations with gross receipts below a certain threshold.

Why is a 990 Form Important?

1. Maintaining Tax-Exempt Status: Failure to file 990 on time will loss of your organization’s tax-exempt status.

2. Public Transparency: The 990 provides the public with insight into your organization’s operations, finances, and governance, promoting transparency and accountability.

3. Donor Confidence: Potential donors often review an organization’s Form 990 to assess its financial health, program effectiveness, and overall governance before making a donation.

How to E-file Form 990 with TaxZerone?

TaxZerone is a comprehensive tax software solution designed to streamline the process of filing Form 990 electronically.

Here’s a step-by-step guide 

Get Started with a Free TaxZerone Account

• New to TaxZerone? Register for a Free account effortlessly and swiftly!
• Already registered? Log in to access your current account.

Locate Your Tax-Exempt Dashboard:

• Navigate to the tax-exempt Dashboard within your TaxZerone account. 

Start Your Filings

• Click the “Start New Return” button and choose Form 990 from the list.
• TaxZerone will guide you through the process step-by-step.

Fill Out the Form Details

• Enter your Organization details, such as Organization Information, Tax-exempt Status, Form Of Organization, and Signing Authority, then click ‘Save & continue’.

Enter the applicable information in the respective fields, and proceed to the next step.

Part I:
It requires a summary of your organization’s activities, governance, revenue, expenses, and net assets or fund balances.

Part II:
The Signature Block is a crucial section that must be signed under penalty of perjury by an eligible officer, such as the president, vice president, or treasurer. If you hire a preparer, they also sign this part.

Part III:
It requests details about your organization’s mission, accomplishments, and expenses, as well as revenue related to the three largest services offered.

Part IV:
It is a checklist of required schedules you must complete if eligible.

Part V:
It asks questions about IRS filings and tax compliance. You’ll need to answer ‘Yes’ or ‘No’ to statements such as ‘Did the organization have an unrelated business gross income of $1,000 or more during the year?’ Is the organization authorized to provide qualified health plans in multiple states?

Part VI:
Please provide details regarding your organization’s leadership, management practices, policies, and disclosures.

Part VII:
This includes current or former officers, directors, trustees, key employees, employees paid over $100,000, and independent contractors receiving over $100,000 in compensation.

Part VIII
Provide the IRS with your organization’s revenue from exempt and unrelated funds. Note that unrelated business income requires filing 990-T

Part IX:
Provide a breakdown of your organization’s functional expenses, covering areas such as accounting services, grants, lobbying, employee benefits, payroll, travel, and other related costs

Part X:
Submitting your organization’s balance sheet is required. All organizations must complete this section.

Part XI:
The Reconciliation of Net Assets is where you provide revenue totals from previous sections, such as Part VIII, Part IX, and Part X.

Part XII:
The final section requires an explanation of the accounting method used to prepare the form (cash, accrual, or other), and whether your financial statements were compiled and reviewed by a public accountant.

You need to enter the information for the applicable schedules listed below.

Schedule-A: Shows if the organization is a public charity and where it gets its money from.

Schedule-B: Lists big donors (over $5,000), but this info isn’t shared publicly.

Schedule-C: Reports if the organization lobbies or gets involved in political campaigns.

Schedule-D: Gives more details about the organization’s finances, like savings and special financial deals.

Schedule-E: For organizations running schools, it talks about student numbers and financial aid.

Schedule-F: If the organization works outside the US, this shows what they do and how they spend money.

Schedule-G: Tells about fundraising events or games used to raise money.

Schedule-H: For hospitals, it gives info on charity care and community health programs.

 Note: Schedule H is currently not supported, it will be available soon

Schedule-I: Shows money given to others in the US, like grants.

Schedule-J: Talks about how much top people in the organization are paid.

Schedule-K: If the organization borrowed money without paying taxes, this tells more about it.

Schedule-L: Reports any special deals or transactions with important people in the organization.

Schedule-M: Lists things like property or stocks donated to the organization instead of money.

Schedule-N: If the organization closed down or sold big things, this tells more about it.

Schedule-O: Let the organization explain more about anything on Form 990.

Schedule-R: Talks about other organizations connected to this one.

Review and E-file:

• Thoroughly review every section of your completed Form 990 using the PDF previews 
• TaxZerone provides error-checking tools to help identify and fix any issues. 
• Once satisfied, click ‘Proceed to Checkout’

Enter your card details to make a payment and select the “Pay & e-File” button to electronically transmit your return to the IRS.

Maintain Records:

• Keep a copy of your e-filed 990 and any supporting documents for your records.
• TaxZerone will provide you with a permanent record of your e-filed return for future reference.

Different Types of Form 990 (Non-profits):

Depending on the size and nature of your non-profit organization, you may need to file one of the following versions of Form 990:

• Form 990-N (e-Postcard): For organizations with gross receipts of $50,000 or less.
• Form 990-EZ: For organizations with gross receipts less than $200,000 and total assets less than $500,000.
• Form 990: For organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more.
• Form 990-PF: For private foundations, regardless of their financial situation.
• Form 990-T: For reporting unrelated business income tax (UBIT) by non-profit organizations.

Filing Deadlines:

Generally, Form 990 must be filed by the 15th day of the 5th month after the end of your organization’s fiscal year. For example, if your fiscal year ends on December 31st, your Form 990 would be due on May 15th of the following year.

If your fiscal year differs, you’ll need to calculate your specific due date. For example, if your fiscal tax year concludes in May, your tax filing deadline would be October 15th.

Note: Need more time for your 990 Forms? Extend your deadline with Form 8868 online. Get up to 6 months’ extension for timely submission.

TaxZerone offers a Free EIN Finder to easily explore tax-exempt organizations and their Form 990 filings.  

By following this guide and leveraging TaxZerone’s user-friendly platform, you can ensure a smooth and efficient e-filing process for your non-profit organization. Stay compliant, promote transparency, and maintain donor confidence by filing your Form 990 accurately and on time.