Frequently Asked Questions (FAQs)
It is imperative for nonprofit professionals to adhere to IRS requirements to retain 501(c)(3) nonprofit status.
The rules and regulations that govern the nonprofit sector change and the IRS holds nonprofit professionals responsible for staying abreast of those changes.
I’ve compiled frequently asked questions that nonprofit professionals shared with me in the sections below. Please add this page as a Favorite to reference.
Form 990: FAQ’s
The Form 990: Frequently Asked Questions (FAQ) below answers the questions you may have about the Form 990 Information Return.
What is a Form 990 Information Return?
The Internal Revenue Service (IRS) requires tax-exempt organizations to disclose the revenues generated and the expenses incurred each fiscal year by filing the Form 990 Information Return annually to retain 501(c)(3) status.
IMPORTANT! Tax-exempt organizations such as 501(c)(3) nonprofits must file the Form 990 even if they generate ZERO revenues to avoid revocation.
What are the primary types of Form 990 Information Returns?
- Form 990N (ePostcard) – organizations with $50,000 or less in gross revenues
- Form 990EZ – organizations with $50,0001 – $199,999 in gross revenues
- Form 990 – organizations with $200,000 or over in gross revenues
When should you file the Form 990 Information Returns?
The Form 990’s are due on the 15th day of the fifth month after the fiscal year ends. For example, if your nonprofit’s fiscal year ends on December 31, then the Form 990 is due on May 15 the next year.
What happens if you do NOT file the appropriate Form 990?
If you fail to file the appropriate Form 990 for three consecutive years, then the IRS will automatically revoke the 501(c)(3) nonprofit status.
You will have to complete the Form 1023 application all over again including paying the processing fee again.
Also, when you earn reinstatement, your nonprofit organization will always have the “revoked” date in your IRS nonprofit record.