Form 990 Filing Tips

Posted on Wednesday, May 08, 2024

Form 990 for organizations with a December 31 year-end are due May 15th. For those organizations with a June 30 year-end that filed an extension, their 990 is also due May 15th.

As your organization prepares its annual Form 990, here are some things to make sure you review.

File the correct version of the form. Filing an incorrect version of Form 990 is considered not filing a form. Organizations that normally have gross receipts of $50,000 or less can file Form 990-N. Organizations with less than $200,000 in gross receipts and less than $500,000 of total assets can file Form 990-EZ. Organizations with gross receipts of $200,000 or more or total assets of $500,000 or more are required to file Form 990. All private foundations are required to file Form 990-PF.
E-file your return. Most organizations are required to e-file their Form 990 with the IRS. Filing on paper will likely create a notice from the IRS along with late filing fees and penalties.
File the proper schedules. All organizations are required to file the core Form 990 but there are also 16 additional schedules (Schedule A – O and Schedule R) that may be applicable to your organization.
Answer all of the questions. The IRS considers a return that does not have all of the questions answered, an incomplete return and therefore, an unfiled return.
Update your program service accomplishments. Form 990 asks organizations to describe their program service accomplishments for the three largest programs. This is a great opportunity to share what your organization accomplished during the year. Don’t just copy last year’s wording.
Review your policies. Form 990 asks if the organization has specific policies in place. Although these polices are not required by law, they are best practices. If there are policies that your organization does not have in place, consider implementing them so that you can answer the question “yes” next year.
Review your board list. Any individual that served on the board of directors at any time during the year is required to be reported on Form 990. It is not uncommon for board members to resign during the year. Make sure the list of individuals includes everyone and make sure their names are spelled correctly.
Sign your return. Form 990 should be signed by a current officer of the organization. “Current” is as of the time of filing. An officer could be the president, vice president, treasurer, assistant treasurer, chief accounting officer, or other corporate officer who is authorized to sign as of the date the return is filed.
Ask your board to review your 990. Although not required, having your board of directors review your 990 prior to filing is best practices. It encourages your board to be involved and also provides additional oversight on what is being reported to the IRS. There is also a question on the Form asking whether your board has been provided a copy of the Form prior to filing.
Update your website. Many organizations choose to share their Form 990 on their website. This is not a requirement but provides additional oversight. If your organization posts your 990 on your website, make sure you update it with the most recent Form. Also, be sure to exclude the donors’ names and addresses on Schedule B from the Form on your website.

Contributed by: Carrie Minnich, MAcct, CPA | Partner | DWD CPAs & Advisors

Posted in Mission Minded Nonprofits

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