Youth sports league tax filing: Form 990-N or 990-EZ

What a league usually files

A local league that is tax-exempt and has its own EIN files one IRS return each year:

• Gross receipts normally $50,000 or less: Form 990-N, the e-Postcard.
• Gross receipts under $200,000 and total assets under $500,000 at year end: Form 990-EZ (or the full Form 990).
• Above either limit: Form 990. 990.tax does not file the full Form 990.

The two tests work differently. The 990-N test uses normal gross receipts: for a league three years old or more, the average over the current year and the two before it. The 990-EZ test looks at the current year's gross receipts and the total assets at the end of the year.

Registration fees count

The IRS defines gross receipts as the total amounts received from all sources, without subtracting any costs or expenses. For a league that means every dollar that came in:

• Registration fees
• Team and field sponsorships, and donations
• Concession stand and snack bar sales, before paying for the food
• Tournament entry fees and gate receipts
• Fundraisers such as raffles, photo days and uniform sales

The arithmetic adds up quickly. A league with 300 players and a $150 registration fee takes in $45,000 from registration alone, before any sponsor or concession money.

If your league is near the line, keep a three-year history of gross receipts so you can work out the average. The 990-N vs 990-EZ guide has the rules for leagues in their first three years.

Charters, national programs and group exemptions

Leagues that play under a national program are set up in different ways. In some programs the local league is a separate organization with its own EIN and exemption letter. In others the national or state organization holds a group exemption covering the local leagues it lists with the IRS. In still others the local unit is part of a larger organization and does not file separately.

What matters for the annual return:

• A group exemption does not file anything for you. IRS Publication 4573 says "A group exemption letter does not change the filing requirements for exempt organizations." A covered league files its own 990-N, 990-EZ or 990.
• The exception is a group return: one Form 990 that the central organization files on behalf of its subordinates. A league included on a group return does not file separately. A league left off it files its own.
• The central organization, not the IRS, decides which leagues its group exemption covers. Ask your district or national office whether your league is on its list, and whether it files a group return that includes you.

You can also look up your league's EIN in the IRS Tax Exempt Organization Search or the 990.tax nonprofit lookup. Leagues covered by a group exemption are often not listed separately, so a missing entry is a reason to ask, not proof of a problem.

What the 990-EZ asks a league

A league that files Form 990-EZ reports its revenue by type (contributions, program service revenue such as registration, fundraising events and sales), its expenses, a beginning and end-of-year balance sheet, what its programs accomplished, and its officers and directors. A 501(c)(3) league also completes Schedule A, which shows its public support. See the Form 990-EZ page for the full list.

When it is due

Both returns are due on the 15th day of the 5th month after the league's tax year ends: May 15 for a calendar year, November 15 for a year ending June 30, and the next business day if that date falls on a weekend or holiday. Form 8868 gives a 990-EZ filer six more months; the 990-N cannot be extended. See when Form 990 is due.

Missed years

The IRS charges no penalty for a late 990-N. A late 990-EZ can be charged $25 a day, up to the lesser of $13,000 or 5% of gross receipts, unless there is reasonable cause. A league that files nothing for three consecutive years loses its exemption automatically. Volunteer boards change often, so it is worth checking that last year's return was filed. 990.tax e-files tax years 2023 and 2024: see filing a past-due 990-N.