Form 990 Overview

Form 990 is the annual information return that most tax-exempt nonprofits file with the IRS. It isn't about paying taxes -- it's how you prove to the IRS that your organization still qualifies for tax-exempt status. It's also a public document, so donors, funders, and state regulators can read it.

NP Ledger's 990 Wizard pulls financial data directly from your books to help you prepare your filing. It auto-detects which form variant you need, maps your accounts to 990 line items, flags compliance gaps (things the IRS expects that might be missing), and generates a worksheet you can hand to your tax preparer or use to file yourself.

Understanding what the 990 is and which variant you need helps you use the wizard confidently.

There are three variants of Form 990. The IRS determines which one you need based on your organization's gross receipts (total money received before expenses) and total assets.

990-N (e-Postcard)

• Who files: Organizations with gross receipts normally $50,000 or less (based on a 3-year rolling average)
• What it is: An 8-question electronic form filed directly on the IRS website
• How long it takes: About 2 minutes
• NP Ledger helps by: Pre-filling the answers you'll need to type into the IRS site

990-EZ

• Who files: Organizations with gross receipts less than $200,000 AND total assets less than $500,000
• What it is: A shorter version of the full 990, covering revenue, expenses, balance sheets, and basic compliance questions
• NP Ledger helps by: Generating a line-by-line worksheet from your books that maps directly to the 990-EZ form

990 (Full)

• Who files: Organizations with gross receipts of $200,000 or more, OR total assets of $500,000 or more
• What it is: The complete return with detailed schedules covering contributors, public support, governance, compensation, and more
• NP Ledger helps by: Generating a comprehensive worksheet, computing schedule thresholds, and flagging compliance gaps

NP Ledger auto-detects your variant based on your financial data. You can see the recommendation and override it if needed in Step 2 of the 990 Wizard.

• Filing due date: 15th day of the 5th month after your fiscal year ends. For calendar-year organizations (Jan-Dec), that's May 15.
• Extension available: File Form 8868 for an automatic 6-month extension (to November 15 for calendar-year filers). NP Ledger can track your extension filing.
• Automatic revocation: If you don't file any variant for 3 consecutive years, the IRS automatically revokes your tax-exempt status. There is no warning letter -- it just happens.

Important: The automatic revocation rule applies even to 990-N filers. Missing the e-Postcard three years in a row revokes your exemption just as surely as missing the full 990.

• Auto-populates financial data from your chart of accounts, mapped to the correct 990 line items
• Detects your form variant based on gross receipts and total assets
• Tracks officers and compensation from your organization settings
• Computes schedule thresholds -- Schedule A (public support test), Schedule B (major contributors), Schedule G (fundraising events), Schedule J (officer compensation), Schedule M (noncash contributions)
• Flags compliance gaps with severity levels so you know what to fix first
• Generates a worksheet organized line-by-line to match the official IRS form

• Does not file electronically with the IRS. You use the worksheet to file through a service like Tax990.com, through a tax preparer, or by paper.
• Does not replace a tax preparer for complex situations (multiple entities, unrelated business income, foreign activities).
• Does not generate the final IRS form. It generates a worksheet -- a document with all the values you need, organized to match the 990 form.

A small after-school tutoring nonprofit has $150,000 in total revenue and $80,000 in total assets. They file 990-EZ because their gross receipts are under $200,000 and their assets are under $500,000.

Using NP Ledger's 990 Wizard, they: 1. Review their organization info and officer list (Step 1) 2. Confirm 990-EZ is the right variant (Step 2) 3. Check that their accounts map correctly to 990-EZ line items (Step 3) 4. Answer compliance questions about governance and activities (Step 4) 5. Review the completed worksheet with all dollar amounts (Step 5) 6. Download the worksheet PDF and file through Tax990.com (Step 6) 7. Mark the filing as submitted in NP Ledger for their records (Step 7)

• Every year after your fiscal year ends -- start the wizard after closing your accounting period
• When your organization grows past the $50,000, $200,000, or $500,000 thresholds -- your form variant may change
• When you receive large donations -- they may trigger Schedule B (major contributor) reporting
• When board members or officers change -- the 990 lists all officers with compensation

Accountant Note: Filing requirements are governed by IRC section 6033. Organizations exempt under section 501(a) must file annually unless specifically excepted (e.g., churches, certain government entities). Private foundations file Form 990-PF regardless of size. NP Ledger supports 501(c)(3) public charities. The 990-N threshold uses a 3-year rolling average of gross receipts per Revenue Procedure 2011-15.