Tax-exempt status does not automatically mean an organization is exempt from filing an annual return or notice. For many nonprofits, the Form 990 series filing is an important way for the IRS, and, through public disclosures, the public, to understand the organization’s finances and activities.
Good nonprofit tax preparation starts with knowing which form applies, when it is due, and what records support the information reported. A consistent process can help a nonprofit prepare for its annual filing and keep its financial information organized throughout the year.
Which form does a nonprofit file?
The IRS chart below outlines which form an exempt organization generally files based on its financial status. Special rules may apply, so organizations should check the IRS instructions for their specific circumstances.
| Organization’s status | Form to file |
|---|---|
| Gross receipts normally $50,000 or less | Form 990-N (e-Postcard). Organizations eligible to file the e-Postcard may choose to file a full return. |
| Gross receipts less than $200,000 and total assets less than $500,000 | Form 990-EZ or Form 990 |
| Gross receipts $200,000 or more, or total assets $500,000 or more | Form 990 |
| Private foundation, regardless of financial status | Form 990-PF |
These thresholds and form options are from the IRS’s Form 990 series filing chart. The chart describes general filing categories; an organization’s type or circumstances may affect which filing is required.
For example, an organization with gross receipts below $200,000 and total assets below $500,000 may generally file Form 990-EZ or choose Form 990. An organization that reaches either of the higher thresholds (gross receipts of $200,000 or more, or assets of $500,000 or more) generally files Form 990.
Form 990 deadlines depend on the fiscal year
For Forms 990, 990-EZ, and 990-PF, the return is generally due on the 15th day of the fifth month after the organization’s tax year ends. That means the deadline depends on the nonprofit’s tax year, not simply the calendar date that is most familiar to its staff.
| Tax year ends | Initial due date | Extended due date |
|---|---|---|
| December 31 | May 15 | November 15 |
| June 30 | November 15 | May 15 |
| September 30 | February 15 | August 15 |
For other year-end dates, the same 15th-day-of-the-fifth-month pattern applies. If a due date falls on a Saturday, Sunday, or legal holiday, it moves to the next business day. See the IRS annual return due-date guidance for the full table.
Form 990-N has a different extension rule: it is due on the initial return due date, and extended due dates do not apply. Organizations should confirm the applicable filing requirement and date for their specific year.
Requesting a filing extension
An organization filing an eligible return may request a six-month automatic extension using Form 8868. The extension request must be submitted before the return’s original due date. The IRS allows one six-month extension for a return for a tax year, and Form 8868 cannot be used to extend Form 990-N. Note also that extending the time to file does not extend the time to pay any tax due.
An extension can provide additional time to complete the filing, but it should not replace a plan for gathering records and reviewing the return. Check the IRS extension guidance for exempt organization returns and the current Form 8868 instructions before filing.
What happens if a nonprofit does not file?
Failing to file a required return or notice for three consecutive tax years can result in the organization’s automatic loss of tax-exempt status. The IRS maintains information about organizations whose exemption has been automatically revoked. Nonprofits can review the IRS guidance on consequences of not filing and use the Tax Exempt Organization Search to check an organization’s status.
A missed filing can be more than an administrative inconvenience. Assigning responsibility for the annual return, recording the fiscal-year deadline, and checking filing status are practical steps that help an organization stay on top of its obligations.
Records and bookkeeping to keep organized
A complete set of records makes it easier to prepare Form 990 and explain the organization’s financial activity. As part of routine nonprofit accounting, consider keeping organized copies of:
- Separate bank and financial account records, plus reconciled bank statements.
- The current board-approved budget and minutes documenting financial decisions.
- Records that distinguish restricted funds from unrestricted funds.
- Donation records and acknowledgment letters, along with supporting information for contributions.
- Payroll records and documentation for payments to contractors.
- Grant agreements, award notices, restrictions, and reports required by funders.
- Supporting documents for revenue, expenses, assets, and liabilities.
Donation documentation deserves particular attention. The IRS sets substantiation requirements for donors and disclosure requirements for charitable organizations, including written acknowledgments for larger gifts and written disclosures for quid pro quo contributions. Review the IRS guidance on charitable organizations' substantiation and disclosure requirements and keep clear records of contributions received along with copies of the acknowledgments your organization provides.
A practical approach is to reconcile accounts regularly, file supporting documents by period and type, and make sure financial activity can be traced to source records. Tax Time Income Tax’s secure file portal is available for secure document sharing with the team.
Common nonprofit filing mistakes
Several preventable issues can complicate annual filing:
- Assuming tax-exempt means no filing. Confirm the organization’s annual filing requirement rather than relying on its exempt status alone.
- Using the wrong deadline. Calculate the due date from the organization’s tax-year end.
- Losing board approval records. Keep minutes and other documentation of significant financial decisions together.
- Mixing restricted and unrestricted funds. Track funds according to their applicable restrictions so the organization can report and manage them accurately.
- Reporting gross receipts inconsistently. Use organized books and supporting records to help prepare consistent figures.
- Forgetting state requirements. Federal annual filings are not a substitute for checking applicable state filing obligations.
These steps do not replace reviewing the current IRS instructions or applicable state requirements. They can, however, help an organization spot missing information before preparing its return.
How professional help fits
A nonprofit may need support identifying the appropriate Form 990-series filing, organizing the information required, and preparing a return from its books and records. Tax preparation for nonprofits is one part of a broader financial process that also depends on sound bookkeeping and clear documentation.
Danny Lamonte, MBA, CFO, Accountant and Business Consultant, and the Tax Time Income Tax team work with organizations on tax preparation. The firm prepares Form 990 and other returns, including Forms 1040, 1041, 1120, 1120-S, and 1065. Nonprofits can learn more about non-profit tax preparation, share documents through the secure file portal, or contact Tax Time Income Tax to discuss their needs.
Conclusion
Nonprofit tax preparation begins with confirming the organization’s filing requirement and tax-year deadline. Maintaining clear financial records, tracking restricted funds, documenting contributions, and planning ahead can make the annual Form 990 process more manageable.
For assistance preparing a nonprofit return or organizing the information needed for filing, contact Tax Time Income Tax to discuss professional support.
This article provides general educational information and is not legal or tax advice for a specific organization. Filing requirements can depend on an organization’s circumstances; consult current IRS guidance and an appropriate professional for advice tailored to your nonprofit.
About the Author: Danny Lamonte, MBA, is a CFO, Accountant and Business Consultant with expertise in financial management, accounting, and business consulting. His professional insights focus on helping individuals and organizations make informed financial decisions.
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