How to File Taxes for Tax-Exempt Organizations

If you have received a tax-exempt designation, there are important details you must consider when filing your taxes for the fiscal year.

When You Need to File

All tax-exempt organizations need to file annual returns with the IRS four and a half months after their tax year ends.

Forms to Consider

Many churches, church affiliated organizations, state institutions, foundations, and other nonprofit entities are required to file some variation of form 990. These variations are 990-EZ, 990-N, 990-PF, and 990-BL.

990 filers must also fill out Schedule forms, whether they fall under the 990-EZ, 990-N, or 990-PF. These Schedule forms require information on an organizations charitable status for the year.

Determining Your 990 Forms

• An organization whose gross receipts are less than or equal to $50,000 must file a 990-N
• Organizations whose gross receipts are less than $200,000 and possess less than $500,000 in assets are required to file form 990-EZ or 990.
• Any organization with gross receipts greater than or equal to $200,000 or possess assets worth more or equal to $500,000 file form 990.
• All private foundations, regardless of their financial status, file form 990-PF.
• Split-interest trusts are not required to file a 990-PF. Instead, they must file form 5227 on their annual returns.

Losing Your Status

Failure to file for a particular tax year, or filing late, subjects you to IRS penalties. Any organization which consistently files late, or not at all, automatically loses tax-exemption.

When it comes to filing taxes for your tax-exempt organization, don’t file late.

Image credit: TaxCredits.net