|
ABOUT FORM 990 The majority of nonprofit organizations pay no Federal tax, except on a special kind of income called "unrelated business income." Even so, most -- but not all -- nonprofits are required to file an annual Federal tax return called Form 990 or Form 990-EZ. Which form you file, and exactly what information you put on it, it depends on what kind of nonprofit organization you have and how much nonprofit revenue (that is, donations,) you bring in during the year. Both Form 990 and Form 990-EZ are for public charities. If your organization is a private foundation, you may indeed have tax to pay, and you file Form 990-PF, which is considerably more complicated and detailed. In almost all cases, Form 990 is basically a nuisance. It's not an instrument to collect taxes; it's just the government's way of finding out how much your organization is receiving. But the penalties and paperwork for filing Form 990 late, or forgetting to file, can be substantial. Keeping current with Form 990 is one of a nonprofit institution's foremost obligations, and that's why we help so many people do it. |