Julian Drago
December 15, 2025
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Form 990 is one of the most important tax documents for nonprofit organizations operating in the United States. Beyond being a filing requirement with the IRS, this form plays a key role in financial transparency and in building the organization’s credibility with donors, authorities, and the general public.
In this guide, you’ll learn what Form 990 is, who must file it, the different types that exist, how to file it correctly, key deadlines, and the most common mistakes you should avoid.
Form 990 is an informational return that tax-exempt organizations must file with the IRS to report their financial condition, activities, revenue, expenses, and governance structure.
Unlike other tax forms, Form 990 does not focus solely on paying taxes. Instead, its main purpose is to demonstrate that the organization continues to meet the requirements to maintain its tax-exempt status.
In practical terms, this document allows the IRS and the public to evaluate how an organization uses its resources and whether it operates in accordance with its stated mission.
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Most nonprofit organizations registered under section 501(c) of the Internal Revenue Code are required to file some version of Form 990 with the IRS. This obligation applies regardless of whether the organization had significant activity during the fiscal year, as the form allows the tax authority to verify that the entity continues to meet the requirements for tax-exempt status.
Additionally, filing Form 990 serves as an exercise in transparency, as it reflects how the organization manages its resources, carries out its activities, and fulfills its institutional mission.
If an organization fails to file this form for three consecutive years, it may automatically lose its tax-exempt status.
Not all organizations file the same form. The IRS provides different versions based on income and asset levels.
This form is intended for small organizations with annual gross receipts generally under USD $50,000.
Example: A newly established community foundation with limited income.
This form applies to organizations with annual revenues under USD $200,000 and total assets under USD $500,000.
Example: A local educational organization with moderate donations.
This version is required for organizations with revenues or assets above the thresholds established by the IRS.
Example: Large foundations or organizations operating at a national level.
This form is exclusive to private foundations.
Filing Form 990 requires organization and accuracy. Some key steps include:
It is essential to have clear records of the organization’s income, expenses, donations, assets, and liabilities.
Selecting the wrong version can lead to errors or additional requests from the IRS.
This includes details about:
Most versions of Form 990 must be filed electronically using IRS-authorized platforms.
Form 990 must generally be filed by the 15th day of the fifth month following the end of the organization’s fiscal year. This deadline is based on the accounting period used by the entity, so not all organizations share the same filing calendar.
Meeting this deadline is essential to avoid penalties, additional IRS requests, or issues with tax-exempt status. If an organization cannot file on time, it may request an automatic extension, which provides extra time to prepare the information properly, though it does not eliminate the obligation to file.
An automatic extension can be requested, but failing to file can lead to serious consequences.
Noncompliance can seriously affect an organization, including:
Complying with this requirement is essential for the organization’s continuity and reputation.
Some of the most frequent errors include:
To avoid issues, it is recommended to:
Yes. The information filed can be accessed by the public, which reinforces the importance of transparency.
Most are, although there are limited exceptions, such as certain religious organizations.
The IRS may request corrections, impose penalties, or initiate additional reviews.
Yes, an automatic extension can be requested, but it does not remove the obligation to file the form.
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