Schedule A Form 990-Ez: A Complete Guide For Nonprofits
As a nonprofit organization, it is essential to file your tax returns accurately and on time. One of the most critical forms you need to submit is the Schedule A Form 990-EZ. In this article, we will provide a comprehensive guide to help you understand Schedule A Form 990-EZ.
What is Schedule A Form 990-EZ?
Schedule A Form 990-EZ is a supplemental form that nonprofit organizations use to report information about tax-exempt status, public charity status, and other details required by the IRS. It is attached to Form 990-EZ, which is the annual return required to be filed by most tax-exempt organizations.
Why is Schedule A Form 990-EZ important?
Filing Schedule A Form 990-EZ is crucial for nonprofit organizations because it provides the IRS with essential information about the organization’s activities and helps determine its tax-exempt status. Failure to file the form accurately and on time can result in penalties and even revocation of tax-exempt status.
What are the requirements for filing Schedule A Form 990-EZ?
Nonprofit organizations that file Form 990-EZ and have public charity status must complete and attach Schedule A Form 990-EZ to their tax returns. The form requires information such as the organization’s mission, program services, compensation of officers, and fundraising activities.
How to fill out Schedule A Form 990-EZ?
Here is a step-by-step guide to filling out Schedule A Form 990-EZ:
Step 1: Provide basic information
Enter the name of the organization, EIN, tax year, and mailing address.
Step 2: Determine the organization’s public charity status
Answer the questions to determine whether the organization is a public charity or a private foundation.
Step 3: Provide information about the organization’s activities
Provide details about the organization’s mission, program services, and accomplishments during the year.
Step 4: Report compensation of officers
Provide information about the compensation and other payments to officers, directors, trustees, key employees, and highest compensated employees.
Step 5: Report fundraising activities
Provide information about the organization’s fundraising activities, including the amount raised and how the funds were used.
Step 6: Complete the public support test
If the organization is a public charity, it must pass the public support test to maintain its tax-exempt status. This requires providing information about the organization’s sources of support and calculating the percentage of support from the public.
Step 7: Sign and date the form
The form must be signed and dated by an authorized individual.
Schedule A Form 990-EZ Table
Here is a table that summarizes the information required in Schedule A Form 990-EZ:
| Section | Information Required |
|---|---|
| Part I | Identification of the organization |
| Part II | Public charity status and support |
| Part III | Mission and program service accomplishments |
| Part IV | Revenue, expenses, and changes in net assets or fund balances |
| Part V | Officers, directors, trustees, key employees, and highest compensated employees |
| Part VI | Other information |
Events and Competition of Schedule A Form 990-EZ
There are no specific events or competitions related to Schedule A Form 990-EZ. However, nonprofit organizations must file the form accurately and on time to maintain their tax-exempt status and avoid penalties.
Question and Answer
Q: When is the deadline for filing Schedule A Form 990-EZ?
A: The deadline for filing Schedule A Form 990-EZ is the same as the deadline for filing Form 990-EZ, which is the 15th day of the 5th month following the end of the tax year.
Q: What is the penalty for not filing Schedule A Form 990-EZ?
A: The penalty for not filing Schedule A Form 990-EZ is $20 per day, up to a maximum of $10,000 or 5% of the organization’s gross receipts, whichever is less.
FAQs
Q: Do all nonprofit organizations have to file Schedule A Form 990-EZ?
A: No, only nonprofit organizations that file Form 990-EZ and have public charity status must file Schedule A Form 990-EZ.
Q: What happens if a nonprofit organization fails to pass the public support test?
A: If a nonprofit organization fails to pass the public support test, it may lose its tax-exempt status and be subject to tax on its income.
By following this guide, you can ensure that your nonprofit organization files Schedule A Form 990-EZ accurately and on time. Remember that accurate and timely filing is crucial to maintaining your tax-exempt status and avoiding penalties.