Filing a Form 990-EZ May Increase Your Chances of Winning a Grant

Submit Your Form 990 Tax Return On Time or Face Steep Penalties

For small exempt organizations, the IRS has made compliance with the form 990 Information Return filing a simple task; unfortunately, as with all things in life, the easy way is not always the best way. Specifically, although your nonprofit organization’s total annual revenue may meet the guidelines that allow for completion of a form 990N, it may not be the best option. Did you know that by voluntarily filing the form 990EZ return you become automatically listed with GuideStar, the nation’s leading source of information on nonprofit organizations, and you also have a better chance of being considered for a grant by a foundation?

Last year over 400,000 nonprofit organizations, or approximately 25% of all exempt organizations, lost their 501 tax exemptions simply because they had failed to file timely and complete form 990 information returns!  In addition to the possibility of revocation of tax exemption, nonprofits are also faced with potential penalties for late filing of their annual returns. In an effort to encourage compliance, the IRS imposes fines of up to $50,000 per year for organizations who are non-compliant with filing requirements.  Even small organizations with revenue under $5,000 per year are subject to late filing penalties.

Yes, churches are exempt from filing a 990. However, many churches may be generating taxable income as part of unrelated business activities such as parking lot rental, bingo, raffles, or other charitable gaming. In such cases, filing of the form form 990-T is mandated. Additionally, when churches have a community based outreach ministry with a separate 501(c)(3) they must always file the form 990 for this outreach program or risk fines and revocation of the 501(c)(3) status.

Organizations eligible to file the e-Postcard or 990N may choose to file the short form return, the form 990-EZ.  Organizations that elect to file the Form 990-EZ must still file a complete return.  An incomplete or partially completed form 990N or Form 990-EZ will not satisfy the annual filing requirement.

If relying upon a professional for assistance with completion of your annual return, it is important to work with an organization that has experience with nonprofit organizations, their business structures, and needs.  At CharityNet USA, we have worked with over 12,000 organizations over the years and we will make appropriate recommendations in regards to the most beneficial tax filing, with a focus on your organization’s anticipated needs as a growing nonprofit.

Call us today for a free assessment! If simple filing is best, we can handle it quickly and at the best price around.  Further, we can help you with a more comprehensive form 990 information return that may significantly improve your organization’s potential grant opportunities, while also increasing your transparency and easing your state compliance requirements.

Interested in what you’ve read here but still want more information on form 990 IRS Federal Tax Return?  Please attend our FREE Webinar on the preparation and filing of the form 990 Information Return. The Free webinar is being held Wednesday March 14, 2012. CLICK HERE to register.

So it’s up to you. Are you sure you have everything in order for IRS Federal Requirements?  Would you like to have a second opinion?  That is what ChurchNet USA is here for.

If you would like more information on the full range of services offered to set up, grow, or manage your nonprofit, foundation, or church outreach programs please contact ChurchNetUSA by visiting ChurchNetUSA or by calling 1.407.857.9002.  Please follow us on Twitter and Like us on Face Book to receive free daily tips and tricks as well as notification of our FREE Award Winning Webinar series!