💡 The Form 990 Every Nonprofit Must File — What the IRS Really Sees Inside Your Return (2025 Edition)
Every year, thousands of U.S. nonprofits and ministries must open their books to the IRS — not through a tax payment, but through a public information return.
That document is Form 990 (Return of Organization Exempt From Income Tax), a detailed annual filing that reveals how a tax-exempt organization earns and spends its money.
1️⃣ What is Form 990?
Form 990 is the IRS’s annual public return for tax-exempt organizations under IRC §501(c).
Rather than reporting income tax, nonprofits file Form 990 to maintain their exempt status and demonstrate financial accountability.
These filings are public records that anyone can access online — donors, watchdogs, and journalists alike.
2️⃣ Who Must File and Which Version?
| Filer Type | Form | 2025 Filing Threshold |
|---|---|---|
| Gross receipts > $200,000 or assets > $500,000 | Form 990 | Full return |
| Gross receipts $50,000 – $200,000 | Form 990-EZ | Short form |
| Gross receipts < $50,000 | Form 990-N (e-Postcard) | Online notice only |
| Private Foundations | Form 990-PF | Mandatory for all years |
3️⃣ Key Disclosure Sections
Form 990 covers far more than numbers. It publicly reveals how the organization is governed and how it fulfills its mission.
Major parts include:
- Part I — Summary: Snapshot of mission, revenues, and expenses
- Part VII — Compensation: Lists officers earning $100k or more
- Part VIII & IX: Detailed revenue and expense breakdown
- Part III — Program Service Accomplishments: Describes major activities
- Part VI — Governance and Policies: Board structure and conflict rules
- Schedules A, B, O: Donor lists, grant sources, and narrative notes
4️⃣ Due Date and Extension
The Form 990 is due by the 15th day of the 5th month after the end of the organization’s fiscal year.
For a calendar-year filer (ending December 31), the deadline is May 15 of the following year.
You can obtain a six-month automatic extension by filing Form 8868 electronically before the due date.
5️⃣ Penalties for Late or Missing Returns
- Daily penalty of $20–$110 (up to $56,000 per return)
- Automatic loss of tax-exempt status after three consecutive years of non-filing
- Additional civil penalties for failure to provide public inspection copies
6️⃣ EA Practical Tips for Nonprofits
- Verify Form 990 status for each client in the IRS Exempt Organization Search (TEOS).
- Review Schedule O narratives — inaccurate mission statements trigger audit flags.
- Advise churches and ministries that voluntary filing builds donor confidence.
- Keep financial records for at least three years after each filing for IRS review.
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