Last updated on Mar 11, 2015
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What is Form 990
The Form 990 2013 is an IRS-required document used by tax-exempt organizations to report financial information and activities for the fiscal year 2013.
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Comprehensive Guide to Form 990
What is the Form?
The Form 990 is an annual information return that tax-exempt organizations in the United States are required to file. This form provides the IRS with essential information regarding an organization's activities, governance, and finances. By submitting Form 990, organizations fulfill their obligation to maintain transparency with the IRS and the public.
Organizations must file this form annually to maintain their tax-exempt status. Key elements included in Form 990 cover various aspects such as organizational activities, governance structures, and financial information. This comprehensive reporting is crucial for sustaining trust with stakeholders, including donors and the community.
Purpose and Benefits of Filing Form
Filing Form 990 serves multiple purposes for tax-exempt organizations. One of the foremost reasons is to preserve the organization's tax-exempt status. Accurate and timely filing helps organizations demonstrate compliance with IRS regulations.
Moreover, transparency in financial reporting enhances credibility and fosters public trust in the organization. By openly sharing their financial health, organizations can build accountability with donors and stakeholders, enhancing fundraising efforts and community support.
Who Needs to File Form?
Eligible organizations that must file Form 990 include nonprofits, charities, and certain other tax-exempt entities. Different types of organizations may have varying filing requirements depending on their revenue and structure.
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Nonprofits with gross receipts exceeding $200,000 typically file Form 990.
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Smaller organizations with gross receipts below $200,000 may qualify to file Form 990-EZ.
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Organizations with gross receipts of $50,000 or less can use Form 990-N.
It’s important to note that while most nonprofits are required to file, there may be exceptions and special cases based on their specific circumstances.
When to File Form and Consequences of Late Filing
Filing deadlines for Form 990 are typically on the 15th day of the 5th month after the organization's tax year-end. Missing this deadline can lead to potential penalties and consequences that may negatively affect the organization’s standing with the IRS.
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Late filing penalties can accrue at $20 per day, up to a maximum of $10,000.
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Organizations may request an extension by filing Form 8868 before the deadline.
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Extensions allow for an additional six months to file Form 990, but not to pay any taxes owed.
How to Fill Out Form Online - Step-by-Step Guide
Filling out Form 990 online can be simplified with tools like pdfFiller. Start by gathering the necessary information to ensure a smooth filing process. Follow these step-by-step instructions for optimal results:
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Log in to pdfFiller and select the Form 990 template.
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Complete the general information section, ensuring all organizational details are accurate.
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Fill out the financial data, focusing on key fields that require special attention.
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Review all entries to avoid common mistakes before final submission.
Common Errors to Avoid When Filing Form
Many organizations encounter typical mistakes while completing Form 990, which can lead to processing delays or rejections. To bypass these issues, it is crucial to understand the most frequent errors:
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Incomplete sections or missing schedules can result in automatic rejection.
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Incorrect financial calculations may misrepresent the organization's status.
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Failure to sign or date the form properly can delay processing.
Implementing a thorough validation and review process can significantly reduce the risk of submitting erroneous information.
How to Submit Form
Once Form 990 is completed, organizations have several submission methods available. The primary options are e-filing and mailing the completed form to the IRS.
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E-filing is generally faster and allows for immediate processing confirmation.
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For mailed submissions, ensure the form is sent to the correct IRS address based on your organization's location.
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Tracking the status of your submitted form can provide peace of mind and confirm receipt by the IRS.
Post-Submission: What Happens After You File Form
After submitting Form 990, organizations enter the IRS review process. This review evaluates the accuracy of reported information and compliance with IRS guidelines. Potential outcomes from this review can range from acceptance to requests for further clarifications.
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Organizations may receive a confirmation of acceptance via mail or electronic notification.
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If corrections or amendments are necessary, they can be filed using Form 990-X.
Security and Compliance in Handling Form
Organizations must prioritize data security while filling out Form 990, especially when sensitive information is involved. pdfFiller ensures robust protection through measures like 256-bit encryption and compliance with regulations such as HIPAA and GDPR.
Using a secure platform for document management helps maintain confidentiality and supports continued compliance with IRS requirements related to sensitive data handling.
Efficiency of Using pdfFiller for Form
Utilizing pdfFiller streamlines the process of filling out and managing Form 990. This cloud-based platform offers several advantages, such as easy editing and the ability to create fillable forms without requiring software downloads.
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Features like eSigning and annotations enhance collaboration during the preparation process.
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Real-time document syncing allows users to access and edit their forms from any device.
These functionalities increase accuracy and efficiency in completing complex tax forms, making the filing process less cumbersome for organizations.
How to fill out the Form 990
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1.To access the Form 990 2013, visit pdfFiller and log in to your account or create a new one if necessary.
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2.Use the search bar to find 'Form 990 2013' and click on the form to open it in the editor.
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3.Before completing the form, gather all financial records, including income statements, expense reports, and previous year's filings.
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4.Begin filling out the required fields by clicking on each section in the form. Use the fillable fields to enter your organization’s data.
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5.Utilize pdfFiller's tools to add text, checkboxes, or any necessary signatures. Make sure to input accurate and clear information.
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6.After inputting data, review each section thoroughly to ensure all information is complete and accurate. Pay particular attention to financial data and required attachments.
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7.Once satisfied with the form, proceed to finalize it by clicking on the 'Done' button to save your progress and make any last adjustments.
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8.You can then download the filled-out form as a PDF or save it in your pdfFiller account for future access or submission.
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9.If you need to submit the form, follow the appropriate filing procedures indicated by the IRS, including any necessary electronic submission methods, mailing addresses, and deadlines.
Who is required to file Form 990?
Tax-exempt organizations with gross receipts over $200,000 or total assets over $500,000 must file Form 990 annually. Smaller organizations typically file different forms unless specifically exempted.
What is the filing deadline for Form 990?
Form 990 is due on the 15th day of the 5th month after the end of your organization’s fiscal year. Extensions can be requested, but timely filing is essential to avoid penalties.
How can I submit Form 990 to the IRS?
Form 990 can be submitted electronically through the IRS e-file system or mailed to the appropriate IRS address based on your organization's location. Verify submission methods annually as guidelines may change.
What supporting documents are needed when filing Form 990?
Supporting documents include financial statements, policies related to governance, and details about executive compensation, among others. Ensure all required documents are included with your form.
What common mistakes should be avoided when filing Form 990?
Common mistakes include failing to include all required schedules, misreporting financial figures, and not signing the form. Always double-check your entries and ensure adherence to IRS guidelines.
What is the average processing time for Form 990?
Processing times vary, but expect several weeks for the IRS to acknowledge receipt and process your Form 990. Be proactive in ensuring timely submissions to avoid delays.
What are the consequences of not filing Form 990?
Failure to file Form 990 can result in penalties, loss of tax-exempt status, and increased scrutiny by the IRS and public stakeholders. Maintaining compliance is crucial for nonprofit organizations.
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