What is the Difference between 990N and 990EZ?

Many small nonprofits have the option to file either Form 990N or 990EZ rather than the full-length IRS Form 990 for their year-end financial reporting. Both of these forms are shorter and less number-heavy than the full-length form. If you are wondering which one fits your organization’s needs, this article will break down the eligibility for both forms and which information each one contains.

All variations of the Form 990 are required to be filed within 5 months and 15 days of the end of the organization’s fiscal year. If the organization is dissolved, the Form 990 must be filed within 5 months and 15 days of the date of dissolution. Penalties for late filing or failure to file include fines of up to $100/day for each day the form is late, loss of nonprofit status, and additional state penalties.

990N

IRS Form 990N, also known as the e-Postcard, is the simplest version of the Form 990. It is intended for use by very small public nonprofits with less than $50,000 in annual receipts. It has to be filed electronically, but is so short that all its information could fit on a postcard. It lists:

• Organization’s legal name and any DBA’s
• Organization’s mailing address and website
• Organization’s EIN
• Principal officer’s name and address
• Organization’s tax year start and end dates
• Verification that the organization is still active
• Verification that the organization had less than $50,000 in receipts in the year

990EZ

Form 990EZ is longer than Form 990N, but shorter than the full Form 990. It is intended for medium-sized nonprofit organizations, that take in more than $50,000 but less than $200,000 in annual receipts, and that have less than $500,000 in total assets. Form 990EZ also has to be e-filed for all fiscal years after 2021.

The 990EZ requires all the information that the 990N contains, plus:

• Information about all officers in the organization
• Information about the organization’s purpose and activities during the year
• Financial data about total receipts and expenses for the organization
• Financial data from the organization’s balance sheet

Other Form 990 Versions

Other versions of Form 990 include Form 990PF, for private nonprofit foundations, and the full-length Form 990 for large nonprofits and any other organizations that choose to use the full-length version instead of the shorter alternatives.

No matter which version of the form you choose filing your Form 990 is easy with 990.tax. We make the filing process intuitive, safe, and accurate for nonprofit organizations of all sizes.

References:

https://www.taxbandits.com/form-990-series/form-990-or-990-ez-or-990-pf-penalties