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Why would you use IRS form 990 EZ?

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Quick Answer

The IRS Form 990-EZ is an expedited form for tax-exempt organizations, nonexempt charitable trusts and political organizations. It is an annual reporting return that certain tax-exempt organizations must file with the Internal Revenue Service to detail a particular organization’s programs, finances and overall mission. All federally tax-exempt organizations, with the exception of state institutions and churches, must file this form.

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Full Answer

The IRS Form 990 EZ contains eight schedules or sections. The schedules are meant to organize the filing based on the organization’s characteristics and function.

Schedule A is used to file information concerning public support and public charity status. Schedule B provides information on the organization’s contributions and contributors. Schedule C is for political campaign and lobbying activities. Schedule E is for schools, specifically private schools receiving contributions. Schedule G is for reporting professional fundraising services, events and gaming activities. Schedule L provides information on financial transactions or arrangements between the organization and individuals or interested parties outlined in section 4958. This section determines whether a member of the organization’s governing body is regarded as an independent member. Schedule N is for organizations in the process of liquidating, terminating or dissolving more than 25 percent of net assets through a sale, exchange or contraction. Lastly, Schedule O is available to provide responses to specific questions posed by the IRS.

The Form 990-EZ denotes the short or expedited version of the standard Form 990. Both contain the same information and are labeled as the “Return of Organization Exempt from Income Tax.” The only difference between the two forms is that the EZ form can be filed online and is expedited with regards to the amount of information and processing times.

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