Knowing how to fill out Form 990 is essential for nonprofit compliance, with over 70% of compliance time spent on it. Improper filing causes 16% of nonprofits to lose tax-exempt status, costing over $800 to regain. Crowded’s AI tools simplify the process, saving time and reducing errors. If you choose manual filing, this guide will help you navigate Form 990 accurately.
How to Fill Out Form 990 in 5 Steps:
1. Understand Which Form You Need to File
Not all nonprofits will file the same version of Form 990. The form you file depends on your organization’s gross receipts and total assets. Here’s a breakdown of the different versions:
- Form 990: For organizations with gross receipts of $200,000 or more or total assets of $500,000 or more.
- Form 990-EZ: For organizations with gross receipts between $50,000 and $200,000 and total assets under $500,000.
- Form 990-N (e-postcard): For nonprofits with gross receipts under $50,000.
- Form 990-PF: For private foundations, regardless of gross receipts or total assets.
2. Know Your Filing Deadline
The deadline for filing Form 990 is the 15th day of the fifth month after the end of your fiscal year. For example, if your fiscal year ends on December 31, your deadline is May 15. However, if you need more time, you can apply for an extension using Form 8868, which, if granted, will push the deadline to November 15. Be sure to file on time to avoid penalties. With Crowded’s AI-generated 990 forms, you will never miss your deadlines. We provide full visibility into your nonprofit’s tax-exempt status and upcoming due dates, ensuring you stay on top of compliance without the stress.
3. Organize Your Financial Information
Form 990 is an in-depth report, and to complete it accurately, you’ll need comprehensive financial documentation. Key documents include:
- Chart of Accounts
- Financial Statements (Profit and Loss, Balance Sheet)
- Audit Reports (if applicable)
If you plan to file on your own, take care to gather and organize all your receipts, donations, expenses, and assets well ahead of the deadline. Crowded streamlines the process of tracking transactions by keeping digital receipts in one place. Come time to file your 990, you can be certain all transactions and donations are accounted for.
4. How to Fill Out Form 990
Filling out Form 990 is a detailed and time-consuming process. The graphic below highlights all the different sections and topics covered by the form.
5. File Electronically
The IRS now requires that all nonprofit tax returns be filed electronically, so be prepared to submit your form online. Crowded offers direct electronic filing with the IRS, so you don’t have to jump through technological hoops to ensure your 990s are filed correctly and on time.
Crowded Helps File Your 990s with Ease
Crowded’s AI-generated annual 990 forms make filing a breeze, helping you reduce tax liabilities and enhance your nonprofit’s financial practices for future filings. With automatic population of Crowded banking data, accurate form selection, and IRS e-filing certification, it ensures a smooth and efficient filing experience.
Conclusion
Knowing how to file form 990 is crucial for maintaining transparency and your nonprofit’s tax-exempt status. By understanding which form to file, staying organized, and following the IRS instructions carefully, you can complete the filing process smoothly and avoid potential penalties. Whether you choose to file independently or work with expert tools like Crowded, the key is staying ahead of deadlines and ensuring your organization’s financial details are clearly and accurately reported.
