Understanding the IRS Form 990

IRS Form 990 is the full-length version of the annual tax return required of nonprofits and is by far the most thorough Form 990 of the bunch.
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[@byLizee]

thank you

[@morgangreenlee2091]

-Expenses broken down into: Program, administrative, and funding expenses.
-specifically for public nonprofits with greater than $200,000 in revenue or asset valuation greater than $500,000
-Tax return: a form on which a taxpayer makes an annual statement of income and personal circumstances, used by the tax authorities to assess liability for tax.
-most grant organizations require a copy of the most recent Form 990
-incorrect or incomplete return is punished the same as not filing at all ($20 late penalty fee)
-Organizations should use the 990 to sell the organization and the organizations mission to donors
-keep good bookkeeping records
-track donations from each donor
-either hire a CPA or hire a CPA to review it before sending to the IRS
-Nonprofit tax laws are very different than for-profit organization laws because nonprofits require complete transparency and accountability
-the better the transparency and accountability, the most like the public will trust you
-Form 990 should answer questions rather than create them.

[@gregmcray]

Great observations, Morgan!

[@sunniharley1745]

Thank you.

[@zenabrown5538]

Thank you

[@777dingo]

What form do you use for a NOT TAX EXEMPT Unincorporated Non Profit association?

[@FoundationGroup]

Most states don't require that you file anything in that instance. The IRS certainly doesn't. You would operate the program the same as you would a taxable sole proprietorship and report the income and expense as such.

[@shadowlynxv6082]

Is that just ONE form?

[@coolcat7492]

To all who have nonprofits and have to file taxes it's not that you can't do it or it's unsafe to file your own taxes just read the questions thoroughly and be honest that is it you do not have to pay these third party companies hundreds of dollars to file something that you can do yourself

[@FoundationGroup]

If you are confident to this yourself, by all means do so. But there is a reason even many CPAs won't work with Form 990 and sub-out to firms like ours. Form 990, especially the long form required of organizations with greater than $200,000 in annual revenue, is difficult, confusing, and is not something most people without tax training want to deal with. Answering certain sections incorrectly can easily trigger IRS audits. Again, you can do it yourself...that's perfectly fine. But for most people, it's a lot more complicated than you imply.