Rev. 2023
This text contains instructions for completing Part XIII of Form 990, which is related to financial statements and reporting for nonprofit organizations. Organizations are required to indicate their accounting method, whether their financial statements were compiled, reviewed, or audited by an independent accountant, and if so, whether the audit was on a separate or consolidated basis. If the organization underwent an audit due to a federal award, it must indicate whether this requirement was met.
Form 990 serves several important purposes. It provides information to the public about an organization's financial health, governance structure, and activities. It also helps the IRS ensure that tax-exempt organizations are complying with reporting requirements and are not engaging in prohibited activities.
Form 990 is the annual information return form for certain types of tax-exempt organizations in the United States as outlined by the Internal Revenue Service (IRS) of the U.S. Department of the Treasury.
Form 990 is a paper form that can be filled out by hand or electronically using IRS-approved software. The form includes several sections and schedules, and organizations must complete all applicable parts to file their return.
Failure to file Form 990 on time can result in penalties and even loss of tax-exempt status. The IRS imposes an excise tax on taxable income that is not reported, as well as a penalty for failure to file on time. The IRS may also revoke the organization's exemption if it does not comply with reporting requirements.
Form 990 requires detailed financial and organizational information, including income sources, functional expenses, governance structure, transactions with insiders, and more. The form also includes schedules for reporting specific types of transactions, such as revenue-sharing arrangements or compensation arrangements.
Form 990 is typically due on May 15th each year for organizations with a fiscal year ending on December 31st. Organizations with different fiscal years have different due dates based on their fiscal year end.
Form 990 is required for tax-exempt organizations that meet certain asset and revenue thresholds as determined by the IRS. Organizations with gross receipts over $50,000 in a tax year and total assets exceeding $250,000 at the end of the tax year are generally required to file.
Form 990 plays a critical role in promoting transparency and accountability for tax-exempt organizations. By requiring detailed financial and organizational reporting, it helps ensure that the public has access to important information about how these organizations operate and use their resources.
Form 990 includes several schedules for reporting specific types of transactions and activities, such as Schedule A for functional expenses, Schedule B for compensation arrangements, Schedule C for investment income, and others. Organizations must complete all applicable schedules.
Form 990 is one of Tax forms that are documents used to report information related to taxes to the relevant tax authority. There are various types of tax forms, including federal, state, and local tax forms, which can vary depending on the taxpayer's circumstances and location.
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