How to File Nonprofit Taxes

Most tax-exempt nonprofits do not pay federal income tax on money connected to their exempt purpose. However, most organizations must still submit a Form 990-series filing to the IRS every year.

The form your nonprofit needs depends primarily on its annual gross receipts and total assets.

Which Form 990 Does Your Nonprofit Need?

Form 990-N

Your nonprofit can generally file Form 990-N, also known as the e-Postcard, when its annual gross receipts are normally $50,000 or less.

Form 990-N is a brief electronic notice that provides basic information about the organization.

Form 990-EZ

Your nonprofit can generally file Form 990-EZ when it has:

• Gross receipts of less than $200,000
• Total assets of less than $500,000 at the end of the tax year

Organizations meeting both limits may file Form 990-EZ or choose to file the full Form 990.

Form 990

Your nonprofit generally must file the full Form 990 when it has:

• Gross receipts of $200,000 or more, or
• Total assets of $500,000 or more

The full Form 990 requires more detailed information about the organization’s finances, activities, governance, officers, and programs.

Form 990-PF

Private foundations generally file Form 990-PF, regardless of their financial size. The standard Form 990-N and Form 990-EZ thresholds generally do not apply to private foundations.

Start by Checking Your Filing History

Before beginning a new return, enter your nonprofit’s EIN into the search tool below:

Reviewing the organization’s filing history can help you confirm:

• Which form was previously filed
• The organization’s established tax year
• Whether its latest return was accepted
• Whether any years appear to be missing
• Whether its federal tax-exempt status remains active

Previous filings can provide a useful starting point, but you should still compare the organization’s current gross receipts and assets with the IRS thresholds for the year being filed.

How to File Nonprofit Taxes

1. Confirm the Organization’s EIN

Use the Employer Identification Number assigned specifically to the nonprofit.

You can usually find it on previous returns, IRS letters, bank records, or the organization’s determination letter.

2. Determine the Tax Year

Confirm whether the nonprofit follows a calendar year ending December 31 or a fiscal year ending in another month.

Do not assume the organization’s operational year and IRS tax year are the same.

3. Calculate Gross Receipts and Assets

Gross receipts generally mean all money received before expenses are deducted.

This may include:

• Donations
• Membership dues
• Grants
• Fundraising proceeds
• Sponsorships
• Program revenue
• Interest income

Use total gross receipts—not net income—when determining which return the nonprofit can file.

4. Select the Correct Form

Use the filing thresholds above to determine whether the organization needs Form 990-N, Form 990-EZ, Form 990, or Form 990-PF.

Some nonprofits may also have additional filing requirements because of unrelated business income, political activity, foreign activity, or other circumstances.

5. Complete and Submit the Return

Enter the organization’s information carefully and review the filing before submission.

Forms 990-N, 990-EZ, and 990 are generally submitted electronically. Save the acceptance confirmation and a complete copy of the return for the organization’s records.

When Are Nonprofit Taxes Due?

A Form 990-series filing is generally due on the 15th day of the fifth month after the end of the nonprofit’s tax year.

Examples include:

• December 31 year-end: May 15
• June 30 year-end: November 15
• September 30 year-end: February 15

Organizations filing Form 990 or Form 990-EZ can generally request an automatic six-month extension using Form 8868. Form 990-N cannot be extended.

What Happens If a Nonprofit Does Not File?

A nonprofit that fails to submit a required Form 990-series return or notice for three consecutive years will generally have its federal tax-exempt status automatically revoked.

The revocation becomes effective on the filing deadline for the third missed year.

Losing tax-exempt status can create:

• Federal income-tax obligations
• Grant and fundraising problems
• State compliance issues
• Reinstatement expenses
• Banking complications
• Loss of donor confidence

Form 990 and Form 990-EZ filers may also face financial penalties for late or incomplete returns.

File Your Nonprofit’s Form 990

Start by using the nonprofit search tool on Pro990.org to review your organization’s filing history and confirm its most recent information.

Once you know the nonprofit’s tax year, gross receipts, assets, and previous filing type, you can determine which return is required.

Pro990 allows eligible organizations to begin filing Form 990-N or Form 990-EZ online.

Review your records, choose the correct form, and file every year to help protect your nonprofit’s tax-exempt status.

This article provides general educational information and is not legal or tax advice