Annual reporting and compliance

The Form 990 series

Most tax-exempt organizations must file an annual information return with the IRS. Which form depends on size.

• Form 990-N, an electronic notice, for organizations whose gross receipts are normally $50,000 or less.
• Form 990-EZ for organizations with gross receipts under $200,000 and total assets under $500,000.
• Form 990 for larger organizations.

Private foundations file Form 990-PF regardless of size. Churches and certain church-related organizations are generally exempt from filing.

Deadlines

The return is due by the 15th day of the fifth month after the end of the organization's fiscal year. For a calendar-year organization, that is May 15. An automatic six-month extension is available for the 990 and 990-EZ by filing Form 8868. There is no extension for the 990-N.

Automatic revocation

An organization that fails to file a required return for three consecutive years automatically loses its tax-exempt status. Reinstatement requires a new application. This happens to thousands of small organizations every year, usually because no one owned the filing.

State obligations

• Annual report to the state where you are incorporated
• Renewal of charitable solicitation registrations
• State tax exemption renewals, where applicable
• Audit or review requirements above certain revenue thresholds in some states

Other federal obligations

If the organization has $1,000 or more in gross unrelated business income, it must file Form 990-T. Employers must handle payroll tax filings. You must make your three most recent annual returns and your exemption application available for public inspection.

Assign ownership

Put every filing on a shared calendar with a named person responsible and a board member who confirms completion.