Which form
990-N vs 990-EZ: which one does your organization file?
File Form 990-N, the e-Postcard, if your gross receipts are normally $50,000 or less. If they're higher, file Form 990-EZ when gross receipts are under $200,000 and total assets are under $500,000. At or above either of those, you file the full Form 990. All three are due on the same date.
The rule in one table
| Your organization | Form to file |
|---|---|
| Gross receipts normally $50,000 or less | 990-N (you may choose to file a complete 990-EZ or 990 instead) |
| Gross receipts under $200,000 and total assets under $500,000 | 990-EZ (or the full 990) |
| Gross receipts $200,000 or more, or total assets $500,000 or more | 990 |
Source: IRS, Which forms do exempt organizations file?
Gross receipts means everything your organization took in during the year, from all sources, before subtracting any costs (IRS). "Normally" means an average, explained below.
What's the difference between the 990-N and the 990-EZ?
| Form 990-N (e-Postcard) | Form 990-EZ | |
|---|---|---|
| What it asks | Eight basic items: your EIN, tax year, name, address, principal officer and two yes-or-no questions | A financial return: revenue, expenses, assets, programs, officers and, for many organizations, schedules |
| How you file | Online only, free at irs.gov | Electronically, usually through filing software or a provider |
| Extension | None | Six months with Form 8868 (IRS) |
| Filing late | No penalty, but the three-year rule applies | Late-filing penalties can apply (IRS) |
| Due date | The 15th day of the 5th month after your year ends | The same |
What does "normally $50,000 or less" mean?
It's an average, not this year's number. The IRS uses three tests, depending on your organization's age (IRS):
- 1 year old or less: received, or donors pledged, $75,000 or less in the first tax year.
- Between 1 and 3 years old: averaged $60,000 or less over the first two tax years.
- 3 years or older: averaged $50,000 or less over the last three tax years, including this one.
So one big year doesn't always move you off the e-Postcard. See gross receipts normally $50,000 or less for worked examples.
Can a 990-N organization file a 990-EZ instead?
Yes. The IRS allows it, with two cautions: the 990-EZ "must be complete", because a partial one doesn't meet the filing requirement, and you can be charged a late-filing penalty if it's late (IRS). For most small groups the e-Postcard is simpler.
Who can't use the 990-N, whatever their size?
Some organizations must file a different return even with small gross receipts (IRS):
- Private foundations file Form 990-PF.
- Most section 509(a)(3) supporting organizations file Form 990 or 990-EZ.
- Political organizations (section 527) that must file an annual return file Form 990 or 990-EZ.
Some organizations, such as churches, don't file an annual return at all. See who must file Form 990-N.
What if we've outgrown the 990-N?
When your average passes $50,000, the 990-EZ (or 990) is your annual return from that year on. It takes more preparation: you'll need your year's income and expenses, assets and program information. It has the same due date, and unlike the e-Postcard it can be extended six months with Form 8868.
See which return the IRS expects from your EIN