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Line by Line Instructions to Complete Form 990-EZ

- Updated January 19, 2023 - 2.00 PM - Admin, Tax990

Organizations under section 501(c), 527, or 4947(a)(1) of the (IRC) Internal Revenue Code (except for the private foundations) with gross receipts less than $200,000 and total assets less than $500,000 must file Form 990-EZ (Short Form Return of Organization Exempt From Income Tax).

This article comprises step-by-step instructions on how to fill out your Form 990-EZ.


How to fill out Form 990-EZ?

Form 990-EZ (Short form) includes basic organization information and 6 parts. Here are the instructions to file your Form 990-EZ:

Basic Organization Information

Basic Organization Information

According to the IRS, organizations must provide the following details:

A. Start and end dates of the corresponding tax year

B. Check if applicable:

Address change

Name change

Initial return

Final return/terminated

Amended return

Application pending

C. Name of organization

D. Employer identification number (EIN)

E. Telephone number

F. Group Exemption Number

G. Accounting Method:

Cash

Accrual

H. Check if the organization is required to attach Schedule B

I. Website

J. Tax-exempt status (check the applicable section)

501(c)(3)

501(c)() - mention the number

54947(a)(1)

527

K. Type of organization:

Corporation

Trust

Association

Other

L. Gross receipts & total assets determination

Note:

Some of the questions in Parts I - VI may require you to attach Schedule O.

Check the box at the top of each part, if you have used Schedule O to explain any of the questions in that part.

Part I - Revenue, Expenses, and Changes in Net Assets or Fund Balances

Part I is categorized into three sections:

Revenue (lines 1 - 9)

Expenses (lines 10 - 17)

Net Assets (lines 18 - 21)

Revenue (Lines 1 - 9):

Revenue (Lines 1 - 9)

In this section, you are required to report the revenue generated by your organization from different sources during the tax year.

  • Lines 1 to 8:

    Mention the amount of revenue generated as contributions, gifts, program service revenue, membership dues and assessments, net income, or loss from gaming and fundraising events and from other sources (describe in Schedule O).

  • Line 9:

    Add all the revenue reported and mention the total amount of revenue.

Expenses (Lines 10 - 17):

Expenses (Lines 10 - 17)

After reporting the revenue, report all the expenses incurred by your organization during the tax year.

  • Lines 10 to 16:

    Mention the amount of expenses made as grants and similar amounts paid, members’ benefits, salaries, other compensation, employee benefits, printing, publications, postage, shipping, and other expenses (Must describe in Schedule O).

  • Line 17:

    Add all the expenses reported and mention the total amount of expenses.

Net Assets (Lines 18 - 21):

Net Assets (Lines 18 - 21)

This is the last section of Part I. Here you can report details about your organization’s net assets.

  • Lines 18 to 20:

    Enter the net assets or fund balances at the start of the tax year, and provide an explanation in Schedule O if any changes occurred in the specified time period.

  • Line 21:

    Enter the value of Net assets or fund balances at the end of the tax year by adding lines 18 through 20.

Part II - Balance Sheet

Part II Balance Sheet

In this part, you are required to report the values of your organization’s assets and liabilities in Column A (Beginning of year) and Column B (End of year).

The organization should enter a value on both of these columns for each line.

Beginning of Year

End of Year

  • Lines 22 - 24:

    Mention the values of cash, savings, investments, properties owned by the organization, and other assets.

  • Lines 25 and 26:

    Enter the amounts of Total Assets and Liabilities.

  • Line 27:

    Enter the value of net assets or fund balances (Should match the value entered on Line 21).

Part III - Statement of Program Service Accomplishments

Activities conducted to serve your organization’s exempt purpose during the tax year are known as Program Service Accomplishments.

Part III Statement of Program Service Accomplishments
  • Lines 28 - 30:

    Provide details about any three of the largest program services conducted during the tax year.

  • Lines 31:

    If there are any other program services conducted, mention them and provide an explanation on Schedule O.

  • Lines 32:

    Enter the total expenses incurred by your organization on program service accomplishments.

Note:

Sections 501(c)(3) and 501(c)(4) organizations must report the amount of grants, expenses, and revenue for each program service.

Part IV - List of Officers, Directors, Trustees, and Key Employees

This part requires you to provide details about your organization’s Officers, Directors, Trustees, and Key Employees.

Provide the following details in the tabular column given.

Name and title

Average hours per week

Compensation (Forms W-2/1099-NEC), if not paid, enter -0-

Health benefits, contributions to employee benefit plans, and deferred compensation

Estimated Amount of other compensation

Part V - Other Information

Part V Other Information

In this part, you will answer a series of “Yes” or “No” questions regarding the activities of your organization.

  • Line 33:

    Answer “Yes” if the organization has participated in any significant activities that were not previously reported to the IRS.

  • Line 34:

    Answer “Yes” if any significant changes were made to the organization or governing documents

Lines 35 to 38
  • Lines 35 to 38:

    Report details about unrelated business income ($1000 or more), liquidation, dissolution, termination, or significant disposition of net assets, political expenditures, and 1120-POL filing requirements of your organization.

Lines 39 to 40
  • Lines 39 to 40:

    If your organization is categorized under Section 501(c)(7), you should enter details about the Initiation fees and capital contributions, Gross receipts for public use of club facilities

    If your organization is categorized under Section 501(c)(3), 501(c)(4), and 501(c)(29), mention if you have engaged in any section 4958 excess benefit transaction during the current
    year or prior year

Lines 41 - 46
  • Lines 41 - 46:

    Enter the details about your organization’s state filing requirements, location of books and records, foreign financial accounts, and the amount of tax-exempt interest

    Answer “Yes” and attach Schedule R if your organization has a controlled entity or is engaged in any transaction with a controlled entity section 512(b)(13).

    Mention if your organization has been part of any political campaign activities, maintained any donor-advised funds, or operated one or more hospital facilities.

Part VI - Section 501(c)(3) Organizations Only

This part only needs to be completed by organizations that fall under Section 501(c)(3)

Lines 47 - 49
  • Lines 47 - 49: (“Yes or “No” questions)

    Mention your organization’s involvement in lobbying activities and any transfers made to an exempt non-charitable related organization. If your organization is a school described in section 170(b)(1)(A)(ii), Answer “Yes” and attach Schedule E.

Line 50
  • Line 50:

    Report the details of the organization’s five highest compensated employees (other than officers, directors, trustees, and key employees) who each received more than $100,000 of compensation from the organization.

Line 51
  • Line 51:

    Report the details of the organization’s five highest compensated independent contractors who each received more than $100,000 of compensation from the organization.

Line 52
  • Line 52:

    Mention if your organization is required to attach Schedule A or not. (All 501(c)(3) organizations must attach Schedule A).

Signature and Paid Preparer:

Once completed, your return must be signed by one of your organization’s officers such as President, Vice president or other authorized members.

If your Form 990-EZ is prepared by a paid preparer, their details can be provided.


Additional Filing Requirements for Form 990-EZ:

Organizations that file Form 990-EZ may be required to provide additional information through various Schedules.

There are 8 different schedules that may be attached to Form 990-EZ based on your organization type, financial status, and activities.

Schedule A - Public Charity Status & Public Support

Schedule B - Schedule of Contributors

Schedule C - Political Campaign and Lobbying Activities

Schedule E - Schools

Schedule G - Supplemental Information

Schedule L - Transactions with Interested Persons

Schedule N - Liquidation, Termination, Dissolution, or Significant Disposition of Assets

Schedule O - Supplemental Information to Form 990


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We have a live support team of experts ready to assist you with any issues you may have while filing. Our team is available via live chat, phone, or email.


How to file your Form 990-EZ electronically

Get Started with Tax 990 to prepare and e-file your Form 990-EZ with the IRS.

Follow these simple steps to e-file your form 990-EZ with Tax 990:

Step 1: Add Organization Details

Enter your organization details manually or let our system import the required details from the IRS using your EIN.

Step 2: Choose Tax Year

Tax 990 supports filing for the current and previous years. Choose the tax year for which you are filing and then select Form 990-EZ

Step 3: Complete Form 990-EZ Details

Provide all the required information to complete your Form 990-EZ.

Step 4: Review your Form Information

After providing all the required information, review your form and proceed.

Step 5: Transmit directly to the IRS

Once you have reviewed your form and verified your information, you can transmit Form 990-EZ
to the IRS.

Step 1

Add Organization Details

Enter your organization details manually or let our system import the required details from the IRS using your EIN.

Step 2

Choose Tax Year

Tax 990 supports filing for the current and previous years. Choose the tax year for which you are filing and then select Form 990-EZ

Step 3

Complete Form 990-EZ Details

Provide all the required information to complete your Form 990-EZ.

Step 4

Review your Form Information

After providing all the required information, review your form and proceed.

Step 5

Transmit directly to the IRS

Once you have reviewed your form and verified your information, you can transmit Form 990-EZ
to the IRS.