Irs 990 Ez Form

What is the IRS 990 EZ?

The IRS 990 EZ is a simplified version of the Form 990, which is used by tax-exempt organizations to provide the Internal Revenue Service (IRS) with information about their financial activities. This form is specifically designed for smaller organizations that meet certain criteria, making it easier for them to report their income, expenses, and activities. The 990 EZ allows organizations to fulfill their reporting requirements while minimizing the complexity associated with the full Form 990.

How to Obtain the IRS 990 EZ

Organizations can obtain the IRS 990 EZ form directly from the IRS website or through tax preparation software that supports this form. It is essential to ensure that the version being used corresponds to the correct tax year, in this case, 2018. Additionally, organizations may also contact the IRS directly for assistance in obtaining the form or for any questions related to its completion.

Steps to Complete the IRS 990 EZ

Completing the IRS 990 EZ involves several steps:

1. Gather financial records, including income statements and expense reports.
2. Fill out the basic information section, which includes the organization's name, address, and EIN.
3. Report revenue, including contributions, grants, and program service revenue.
4. Detail expenses, categorizing them into functional areas such as program, management, and fundraising.
5. Complete the section on the organization's activities and governance.
6. Review the completed form for accuracy before submission.

Legal Use of the IRS 990 EZ

The IRS 990 EZ serves as a legal document that must be filed annually by qualifying tax-exempt organizations. By filing this form, organizations comply with federal regulations that require transparency in financial reporting. Failure to file the 990 EZ can result in penalties, including the loss of tax-exempt status. It is crucial for organizations to understand the legal implications of their filings and ensure that they adhere to all applicable laws.

Filing Deadlines / Important Dates

For organizations using the IRS 990 EZ for the 2018 tax year, the filing deadline typically falls on the fifteenth day of the fifth month after the end of the organization’s fiscal year. For most organizations operating on a calendar year, this means the form is due by May fifteen of the following year. Extensions may be available, but it is important to file the necessary forms to avoid penalties.

Required Documents

To complete the IRS 990 EZ, organizations must have several documents on hand, including:

• Financial statements for the reporting year.
• Documentation of contributions and grants received.
• Records of expenses incurred during the year.
• Information on board members and key staff.

Penalties for Non-Compliance

Organizations that fail to file the IRS 990 EZ by the deadline may face significant penalties. The IRS imposes fines for late filings, which can accumulate over time. Additionally, repeated failures to file can lead to the automatic revocation of tax-exempt status, making it imperative for organizations to stay compliant with their filing obligations.