Form 990 Instructions - Simplified

What is Form 990 used for?

Form 990, Return of Organization Exempt from Income Tax, is an annual information return filed by certain tax-exempt organizations to provide the IRS with information about their activities, finances, and compliance with tax-exempt requirements. It helps the IRS ensure that organizations continue to meet the requirements for maintaining their tax-exempt status.

The form also provides transparency by making information about eligible exempt organizations available to the public.

What are the Types of Form 990?

The IRS provides different Form 990 series filings based on the type of organization and its financial activity.

Form Type Condition Under Which It Is Filed
Form 990 - Return of Organization Exempt from Income Tax Filed by tax-exempt organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more at the end of the tax year (unless an exception applies).
Form 990-EZ - Short Form Return of Organization Exempt from Income Tax Filed by eligible tax-exempt organizations with gross receipts less than $200,000 and total assets less than $500,000 at the end of the tax year.
Form 990-N - Electronic Notice (e-Postcard) Filed by eligible small tax-exempt organizations whose gross receipts are normally $50,000 or less and that are not required to file Form 990 or Form 990-EZ.
Form 990-PF - Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation Filed by private foundations and certain nonexempt charitable trusts treated as private foundations, regardless of gross receipts or total assets.
Form 990-T - Exempt Organization Business Income Tax Return Filed by tax-exempt organizations that have $1,000 or more of gross income from an unrelated trade or business to report and pay tax on unrelated business income.

Who Must File Form 990?

Most organizations exempt from federal income tax under Internal Revenue Code Section 501(a) are required to file an annual information return with the IRS, unless they qualify for an exception.

Organizations generally required to file Form 990 include:

  • Tax-exempt organizations described under Section 501(a)that are not eligible to file Form 990-EZ or Form 990-N based on their financial activity.
  • Organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more at the end of the tax year, unless an exception applies.
  • Nonexempt charitable trusts treated as private foundations under Section 4947(a)(1) that are required to file Form 990 instead of Form 990-PF based on their filing requirements.
  • Section 527 political organizations that are required to report information under the Form 990 requirements.
  • Organizations that are not required to file Form 990 but choose to file voluntarily to provide information to the IRS and maintain public disclosure records.
Note: The specific Form 990 series return required depends on the organization's type, gross receipts, and total assets.

What are the Schedules involved in Form 990?

Schedule Schedule Name When Form 990 Requires It
Schedule A Public Charity Status and Public Support The organization is a Section 501(c)(3) organization that is not a private foundation, or it claims Section 501(c)(3) status but has not yet filed Form 1023/1023-EZ or received its determination letter.
Schedule B Schedule of Contributors The organization meets the applicable contributor and contribution thresholds based on its Section 501(c) classification and public charity status.
Schedule C Political Campaign and Lobbying Activities The organization engaged in political campaign activities, or applicable lobbying activities or a Section 501(h) election applies. Certain Section 501(c)(4), (5), and (6) organizations also complete applicable parts when they receive membership dues, assessments, or similar amounts.
Schedule D Supplemental Financial Statements The organization has any of the applicable activities or financial interests covered by Part IV, including donor-advised funds or similar funds, conservation easements, collections, escrow or custodial accounts, endowment funds, certain assets or liabilities, or applicable audited financial statements.
Schedule E Schools The organization checked the school box on Schedule A, Part I, line 2, indicating that it is a school.
Schedule F Statement of Activities Outside the United States The organization maintained an office or had employees, agents, or independent contractors outside the United States, or met the applicable foreign activity, grantmaking, investment, revenue, or expense thresholds.
Schedule G Supplemental Information Regarding Fundraising or Gaming Activities Professional fundraising service expenses exceed $15,000, or the applicable fundraising and gaming amounts exceed $15,000.
Schedule H Hospitals The organization operated one or more hospital facilities during the tax year, directly or indirectly through a disregarded entity or qualifying joint venture.
Schedule I Grants and Other Assistance to Organizations, Governments, and Individuals in the United States The organization reported more than $5,000 of grants or other assistance to any domestic organization or government, or more than $5,000 in aggregate grants or assistance to domestic individuals, subject to the IRS exceptions
Schedule J Compensation Information The organization listed a former officer, director, trustee, key employee, or highest compensated employee in Part VII; reported more than $150,000 of reportable and other compensation for a person listed in Part VII; or applicable compensation from an unrelated organization exists.
Schedule K Supplemental Information on Tax-Exempt Bonds The organization has a tax-exempt bond issued after December 31, 2002, with an outstanding principal amount exceeding $100,000 at the end of the tax year.
Schedule L Transactions With Interested Persons The organization has applicable excess benefit transactions, loans or receivables/payables, grants or assistance, or business transactions involving interested persons, as specified in Part IV and Schedule L.
Schedule M Noncash Contributions The organization received more than $25,000 in noncash contributions, or received certain art, historical treasures, artifacts, scientific specimens, archaeological artifacts, similar assets, or qualified conservation contributions, regardless of amount.
Schedule N Liquidation, Termination, Dissolution, or Significant Disposition of Assets The organization liquidated, terminated, dissolved, ceased operations, or engaged in a significant disposition of net assets during the tax year.
Schedule O Supplemental Information to Form 990 Required for every organization filing Form 990. It provides required narrative explanations and supplemental information for applicable questions on Form 990.
Schedule R Related Organizations and Unrelated Partnerships The organization has applicable disregarded entities, related organizations, controlled entities, or certain interests in unrelated partnerships, as identified in Part IV.

In Simple Words, For an organization filing Form 990:

  • Schedule O is mandatory. It is required to provide supplemental information and explanations for Form 990.
  • Schedules A through N and R are required only when the applicable IRS conditions are met, generally based on the organization's answers in Part IV, Checklist of Required Schedules.
  • An organization does not need to file every schedule simply because it files Form 990.

IRS Sections governing Form 990

Form 990 is primarily governed by Internal Revenue Code Section 6033, along with other provisions that establish the tax-exempt status and reporting requirements applicable to certain organizations. The key IRS sections relevant to Form 990 are listed below.

IRS Section Relevance to Form 990
IRC §501(a) Provides the general federal income tax exemption framework for organizations covered by Form 990.
IRC §501(c) Defines the various categories of organizations that may qualify for tax-exempt status and may have Form 990 filing requirements.
IRC §6033 Primary provision governing Form 990. Establishes the annual information-reporting requirements for certain tax-exempt organizations.
IRC §4947(a)(1) Applies to certain nonexempt charitable trusts treated as private foundations and subject to annual information-reporting requirements.

Accounting Period and Accounting methods

1) Accounting Periods for Form 990

Calendar Year

  • Runs from January 1 through December 31.
  • For example, the 2025 Form 990 covers January 1, 2025, through December 31, 2025.

Fiscal Year

  • Covers a 12-month period that does not end on December 31.
  • The organization uses the Form 990 for the year in which its fiscal year begins.
  • For example, July 1, 2025, through June 30, 2026, is reported on the 2025 Form 990.
  • Enter the fiscal year beginning and ending dates in Item A.

Short Period

  • Covers a period of less than 12 months.
  • It may occur when an organization begins operations, changes its accounting period, or terminates.
  • If the short year begins in 2025 and ends before December 31, 2025, the organization may use either the 2024 Form 990 or 2025 Form 990.
  • Check “Initial return” or “Final return/terminated” in Item B, when applicable.

2) Change in Accounting Period

  • When an organization changes its accounting period, it must file a Form 990 for the resulting short period.
  • The reason for the change must be reported as either “Form 1128 was approved” or “Revenue Procedure 85-58 rules apply.”
  • If the organization previously changed its annual accounting period during the applicable 10-calendar-year period, it may also be required to file Form 1128 with the short-period return.

3) Accounting Methods for Form 990

Accounting Method How It Reports Income and Expenses Example
Cash Receipts and Disbursements Method Reports income when received and expenses when paid. An organization receives a $5,000 contribution in December 2025. It reports the contribution in 2025.
Accrual Method Reports income when earned and expenses when incurred, regardless of when payment is received or made. An organization earns $5,000 in December 2025 but receives the payment in January 2026. It generally reports the income in 2025.

Requirements for Form 990

(990 Form Filing Requirements)

  • Organization details:
    Legal name, EIN, address, and applicable tax-exempt status information.
  • Accounting period:
    Tax year beginning and ending dates.
  • Financial information:
    Revenue, expenses, assets, liabilities, and other required financial information.
  • Organization activities:
    Information about the organization's activities, programs, and operations during the tax year.
  • Governance information:
    Details about officers, directors, trustees, key employees, and certain other individuals, as applicable.
  • Compensation information:
    Required compensation details for applicable individuals.
  • Related organizations and transactions:
    Information about applicable related organizations, interested persons, and transactions.
  • Required schedules:
    Complete and attach the schedules required based on the organization's activities and answers in Part IV.
  • Schedule O:
    Complete the required supplemental information and explanations.
  • Signatures:
    Ensure the return is properly signed by an authorized officer and, when applicable, the paid preparer.
  • Electronic filing:
    Form 990 must generally be filed electronically with the IRS.
Note: The exact information and schedules required depend on the organization's circumstances and its answers throughout Form 990.

When is Form 990 due?

Form 990 is generally due by the 15th day of the 5th month after the end of the organization's tax year.

  • Calendar-year organization:
    The tax year ends on December 31. The Form 990 is due on May 15 of the following year.
    Example: Tax year ends December 31, 2025 → Form 990 is due May 15, 2026.
  • Fiscal-year organization:
    The due date is the 15th day of the 5th month after the fiscal year ends.
    Example: Tax year ends June 30, 2026 → Form 990 is due November 15, 2026.
Note: If the Form 990 due date falls on a Saturday, Sunday, or legal holiday, the return is due on the next business day.

Form 990 due date for 2027 - For the 2026 tax year, covering January 1, 2026, through December 31, 2026, Form 990 is regularly due on May 15, 2027. Since May 15, 2027, falls on a Saturday, the 2027 filing deadline is Monday, May 17, 2027, assuming Monday is not a legal holiday.

How to file Form 990?

Form 990 must generally be filed electronically. E-filing is available for the current tax year and two prior tax periods. Older tax years must be filed on paper because electronic filing is no longer available for those periods. Considering 2026 as the current tax year below is the table derived,

Tax Year Filing Method
2023 and earlier Paper filing only because e-filing is no longer available for these older years
2024 E-filing required if the return is subject to the Form 990 e-file requirement; e-filing is available.
2025 E-filing required; the IRS instructions explicitly state that a 2025 Form 990 is required to be e-filed.
2026 E-filing required, assuming the return is being filed under the current Form 990 e-filing requirement.
2027 and later E-filing required, subject to any future IRS changes or applicable exceptions.

Refer to the IRS Form 990 Instructions page which explicitly mentions the e-filing!

How to file Form 990 Online manually?

1. Determine Filing Requirement
Identify the correct Form 990 series return based on the organization type, gross receipts, assets, and filing requirements.

2. Gather Required Information
Collect financial details, program activity information, officer/director details, and applicable schedule information.

3. Complete Form 990 and Schedules
Download the latest Form 990 and Manually fill out the required sections of Form 990 and attach all applicable schedules based on the organization’s activities.

4. Review, Sign, and Prepare the Return
Verify all entries, ensure required explanations and attachments are included, and obtain the authorized officer’s signature.

5. Mail the Return to the IRS
Submit the completed Form 990 package to the IRS by mail before the applicable filing deadline.

How to file Form 990 Online with Efile990?

1. Create an Account and Start Filing
Log in to the online Form 990 filing portal e-File990, enter your organization details, and select the required Form 990 series return.

2. Enter Organization and Financial Information
Provide the required organization details, financial information, program activities, and other filing details through the guided questionnaire.

3. Complete Applicable Schedules Automatically
Based on your organization’s responses, the portal identifies and prompts you to complete the required schedules and additional information sections.

4. Review, Pay, and Submit to IRS
Review the completed return, pay the applicable processing fee, and electronically submit the Form 990 filing to the IRS through the authorized e-file system.

What are the Penalties for Form 990?

The IRS may impose penalties when an organization files Form 990 late, files an incomplete or incorrect return, or fails to meet the electronic filing requirement. The primary failure-to-file penalty is imposed under IRC Section 6652(c)(1)(A)

Situation Penalty
Late, incomplete, or incorrect Form 990 $25 per day, up to the lesser of $13,000 or 5% of the organization's gross receipts for the year.
Large organization with annual gross receipts exceeding $1,309,500 $130 per day, up to $65,000 for one return.
Responsible person fails to provide complete/correct information after IRS notice $10 per day, with a maximum of $6,500 for all persons for one return.
Required e-filing not completed The organization is deemed to have failed to file, even if it submits a paper return.
Failure to file for 3 consecutive years The organization's tax-exempt status is automatically revoked on and after the due date of the third annual return or notice.

Additional statutory penalties: Willful failure to file and filing fraudulent returns or statements may also result in penalties under IRC Section 7203, 7206, and 7207.

Why e-file990 for Form 990 Filing?

e-File990 offers a simple and affordable way to complete your Form 990 filing online.

  • Affordable pricing:
    File Form 990 for $29.95, at approximately one-tenth of typical market costs.
  • IRS-authorized e-filing:
    Submit your Form 990 through an IRS-authorized e-file provider.
  • Professional support:
    Get assistance from a dedicated customer support team.
  • Easy online process:
    Navigate the filing process with a straightforward interface.
  • No software download:
    Complete your filing online without installing additional software.

How to Access Form 990 Forms?

The IRS provides current and prior-year Form 990 and related schedules, instructions, and other tax-exempt organization forms on its official website.

Access Form 990 forms and instructions:
https://www.irs.gov/forms-pubs/about-form-990

What are the Exemptions for Form 990

Certain tax-exempt organizations are not required to file Form 990 because the IRS provides specific filing exceptions. Major categories include,

  • Churches and certain church-affiliated organizations, including qualifying integrated auxiliaries and conventions or associations of churches.
  • Certain governmental organizations, including qualifying state institutions and governmental units or their affiliates.
  • Certain Section 501(c)(1) organizations organized under Acts of Congress.
  • Certain organizations with normally $50,000 or less in annual gross receipts that qualify to file Form 990-N instead.
  • Private foundations, which generally file Form 990-PF instead of Form 990.
  • Certain organizations required to file another federal return, such as qualifying employee benefit trusts filing Form 5500.

For the complete list of Form 990 filing exceptions, refer to the IRS Annual Exempt Organization page

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