Non-profits are some of the hardest working and rewarding organizations in our country.
While many of these organizations may enjoy tax-exempt status and believe that it absolves them of all oversight, most non-profit tax-exempt organizations are required to file annual tax returns with the IRS.
Does A Non-Profit Get Taxed?
Even though most tax-exempt non-profit organizations do not pay federal taxes most do have to file an informational return with the IRS. This annual reporting return is called a Form 990. This form allows the IRS and the general public to evaluate a non-profit’s operations; it includes information on the non-profit’s mission, programs, and finances.
Not all non-profits have to file annual returns.
Generally, the following do not have to file Form 990:
- Most faith-based organizations, religious schools, missions or missionary organizations
- Subsidiaries of other non-profits – those that may be covered under a group return filed by the parent organization
- Many government corporations
- State institutions that provide essential services
How Should A Non-Profit File?
Most federally tax-exempt organizations (with state institutions and religious organizations excepted) file a 990 Form.
The IRS provides information to help you determine which form to file
- Larger non-profits with gross receipts of more than $50,000 file Form 990 or 990-EZ
- Smaller non-profits with gross receipts of less than $50,000 file Form 990-N (e-Postcard)
- Private foundations file Form 990-PF
Insogna CPA is happy to help your organization file your annual non-profit tax return. Your organization does enough hard work running day-to-day operations; let us help make taxes easier for you.