What is IRS Form 990-EZ and when nonprofits must file it

Last updated 2026-07-24

What is Form 990-EZ?

Form 990-EZ is an IRS tax-information return for smaller tax-exempt organizations. It sits between the postcard-simple Form 990-N and the full Form 990. ^[1] The form runs five pages plus a handful of schedules. You report gross receipts, program revenue, fundraising income, expenses, net assets, and your board's key activities. The IRS uses 990-EZ to verify your nonprofit is spending money on its stated mission, not enriching insiders, and still qualifies for tax-exempt status. ^[1] Most booster clubs, PTOs, and youth-sports leagues file 990-EZ during their mid-size years. You're past the $50,000 threshold where you could file the simple 990-N, but you're under $200,000 and don't yet need the full 990's detail. The form is public. Anyone can request it or pull it from sites like GuideStar. Donors, parents, and state charity offices routinely check 990-EZ filings to see how much you spent on programs versus overhead.

Who must file Form 990-EZ?

You must file 990-EZ if your organization is tax-exempt under IRC 501(c)(3), 501(c)(4), or certain other 501(c) codes, and you meet both of these conditions: ^[1] • Gross receipts are at least $50,000 but less than $200,000 for the tax year. • Total assets are less than $500,000 at the end of the year. If your gross receipts drop below $50,000, you can file the simpler 990-N postcard instead. If your receipts hit $200,000 or more, or your assets reach $500,000 or more, you must file the full Form 990. Gross receipts means all revenue before expenses: donations, fundraiser proceeds, membership dues, program fees, investment income, and in-kind contributions. Don't net out your costs; the IRS wants the top-line number. Private foundations and churches use different forms. Most booster clubs and PTOs are public charities and follow the 990, 990-EZ, or 990-N ladder.

What does a treasurer do when filing Form 990-EZ?

The treasurer gathers the year's financial records, fills out the form, and files it on time. Here's the actual workflow. First, you reconcile your books: match bank statements to your ledger, categorize every transaction, and close the fiscal year. You need accurate totals for revenue by source (donations, fundraisers, program fees) and expenses by category (program services, management, fundraising). ^[2] Next, you answer the form's narrative questions. Part V asks you to describe your three largest program activities in plain English. You also disclose whether any officer, director, or key employee received compensation over $100,000, and whether you engaged in certain transactions with insiders. ^[1] You attach Schedule A if you're a 501(c)(3) public charity; it confirms your public-support test so the IRS knows you're not a private foundation. You may also attach Schedule G if you ran bingo, raffles, or other gaming fundraisers with gross revenue over $15,000, or Schedule O for additional explanations. Finally, you file electronically. The IRS requires e-filing for nearly all 990 returns. You can use IRS Free File if you qualify, or pay for commercial software (typically $50 to $150 for a 990-EZ). Some booster treasurers use a CPA; expect $400 to $800 for a professional 990-EZ prep if your books are clean. The president or another authorized officer must sign. Many groups have both the treasurer and president review the draft before filing.

When is Form 990-EZ due?

990-EZ is due by the 15th day of the 5th month after your fiscal year ends. ^[3] For calendar-year groups, that's May 15. If your fiscal year ends June 30, the return is due November 15. You can request an automatic six-month extension by filing Form 8868 before the original deadline. The extension moves the due date to the 15th day of the 11th month (November 15 for calendar-year filers). The extension is automatic; you don't need IRS approval, but you do have to submit the form. ^[4] Missing the deadline (even with an extension) triggers a penalty: $20 per day, up to the lesser of $10,500 or 5% of gross receipts, plus $20 per day per responsible person if the IRS formally demands the return and you still don't file. ^[1] Small booster clubs rarely hit the upper penalty cap, but a 30-day delay costs $600. If you miss three consecutive years, the IRS automatically revokes your tax-exempt status. You drop off the Exempt Organizations list and must file a full Form 1024 or 1023 application (and pay the fee) to reinstate. It's a nightmare. Set a recurring calendar reminder for the 1st of the month before your deadline, and another for the extension deadline if you need it.

What financial information goes on Form 990-EZ?

Part I is your revenue and expense summary. You list: • Contributions, gifts, grants (line 1) • Program service revenue (line 2) • Membership dues (line 3) • Investment income (line 4) • Fundraising events' gross revenue, less direct expenses (lines 6a-c) • Gross sales of inventory, less cost of goods sold (lines 7a-c) • Other revenue (line 8) • Total revenue (line 9) Then expenses: • Grants and similar amounts paid (line 10) • Benefits paid to or for members (line 11) • Salaries, other compensation, employee benefits (lines 12-14) • Professional fees (line 15) • Occupancy, rent, utilities (line 16) • Other expenses (line 17) • Total expenses (line 18) Line 19 is your net assets or fund balance change. ^[1] Part II is your balance sheet: cash, savings, receivables, inventory, fixed assets, liabilities, and net assets at year-end. Most booster clubs have cash and maybe a trailer or equipment as fixed assets. Part III asks about your program activities: describe each major program, how many people you served, and how much you spent. This is where you explain your mission in action. "We funded athletic equipment, coaching stipends, and tournament travel for 240 student-athletes across five sports, spending $48,000." Part IV lists officers, directors, key employees, and their compensation. You report any salary, bonuses, or reimbursements over $100. Most booster treasurers and presidents serve unpaid, so you'll often enter zero. Part V is yes/no questions about governance, conflicts of interest, document retention, and certain transactions. Answer honestly; the IRS cross-checks these against your bylaws and state filings.

What schedules does Form 990-EZ require?

Schedule A is mandatory if you're a 501(c)(3) public charity. It's where you prove you pass the public-support test: at least one-third of your revenue comes from the general public (donations, membership dues, program fees) rather than a few large donors or investment income. Most booster clubs easily pass because they rely on parent donations and concession sales. Schedule B lists every donor who gave $5,000 or more during the year. You report the amount but not the donor's name on the public 990-EZ; the full Schedule B with names goes to the IRS only. If your largest donor gave $4,800, you skip Schedule B entirely. Schedule G is required if you had gaming revenue (bingo, pull-tabs, raffles) over $15,000 gross, or if any single gaming event had gross revenue over $5,000. You break out revenue and direct expenses by type of game. State raffle laws and IRS gaming rules interact; if you run large raffles, read Schedule G instructions carefully. Schedule O is for additional explanations. Use it if a yes/no question in Part V needs context, if you want to elaborate on a program activity, or if any line item is unusually large and you want to prevent IRS questions. Schedule C is for groups engaged in lobbying or political activity. Most booster clubs and PTOs don't lobby, so you skip it. You attach these schedules to your e-filed 990-EZ. The software will prompt you based on your answers.

How does Form 990-EZ differ from the full Form 990?

The full Form 990 runs 12 pages plus many more required schedules. It demands detailed breakdowns of functional expenses (program, management, fundraising), a full statement of functional expenses, detailed governance policies, and a much longer narrative section. 990-EZ lets you report program expenses in a single line with a brief description in Part III. The full 990 requires you to allocate every dollar of salary, rent, and supplies across program, management, and fundraising using reasonable methods. That's a significant accounting lift. The full 990 also requires Schedule D if you hold investments or conservation easements, Schedule F if you have international activities, Schedule H if you're a hospital, and Schedule J for detailed compensation reporting. 990-EZ has fewer triggers and lighter disclosure. Practically, most booster clubs hire a CPA for a full 990 ($1,000 to $2,500) but often self-prepare a 990-EZ with software ($50 to $150). The complexity jump is real. You cross the 990 threshold at $200,000 gross receipts or $500,000 assets, whichever comes first. Plan ahead: if you're at $180,000 this year and growing, allocate budget or volunteer time for next year's full 990.

What role does the club treasurer play in Form 990-EZ?

The treasurer owns the numbers, but the board owns the filing. Here's what that means in practice. The treasurer maintains the books all year, closes them at fiscal year-end, and prepares the draft 990-EZ. You gather donation records, reconcile bank statements, categorize expenses, and draft the Part III program descriptions. You're the one who knows whether that $12,000 payment was for uniforms or coaching stipends. The treasurer typically isn't the final signer. The president or board chair signs under penalty of perjury that the return is accurate. Many groups have a review process: the treasurer prepares, the board finance committee reviews, and the president signs. The treasurer also keeps the filed 990-EZ on record. Anyone can request a copy, and some states require you to attach it to your state charity registration renewal. You should post it on your website or make it available at meetings to build transparency. What a treasurer does in a club extends beyond bookkeeping. You're the guardian of the audit trail: canceled checks, deposit slips, receipt logs, donor acknowledgment letters. The 990-EZ is a once-a-year snapshot, but it rests on 365 days of accurate data entry and document retention. If the IRS questions your return, the treasurer is usually the first contact. You'll need to produce bank statements, invoices, and meeting minutes to substantiate the numbers. Keep everything for at least three years after filing; best practice is seven. ^[2]

How much does it cost to file Form 990-EZ?

If you self-prepare using IRS Free File or low-cost software, you'll spend $0 to $150. TaxAct, TaxSlayer, and other commercial providers offer 990-EZ e-filing for $50 to $150. Some charge more if you need multiple schedules or phone support. If you hire a CPA or enrolled agent, expect $400 to $800 for a straightforward 990-EZ with clean books and no unusual transactions. If your records are messy, the preparer will charge more to reconcile them first. Add $150 to $300 if you need Schedule G for gaming or other complex schedules. The BoosterLedger Treasurer Kit includes a 990-EZ filing checklist, sample program descriptions, and a categorized expense worksheet you can hand to a preparer or use with software. It doesn't replace a CPA, but it cuts prep time in half. Visit /treasurer-kit-builder to personalize one for your state and booster type. Some clubs alternate: the treasurer self-files 990-EZ in normal years and hires a CPA every three years for a deeper review. That's a reasonable middle ground if budget is tight.

What happens if you file Form 990-EZ late or incorrectly?

Late filing triggers a penalty of $20 per day, capped at the lesser of $10,500 or 5% of gross receipts. ^[1] A booster club with $120,000 receipts faces a $6,000 cap, but you'll hit it after 300 days. The penalty starts the day after the deadline (or extended deadline if you filed Form 8868). If the IRS sends a formal notice demanding the return and you still don't file within 10 days, they add $20 per day per responsible person (typically the treasurer and president). That stacks on top of the organizational penalty. Three consecutive years of non-filing means automatic revocation of tax-exempt status. The IRS publishes your name on the Auto-Revocation List, and you lose your 501(c) determination. Donations are no longer deductible, and you must file a new exemption application (Form 1024 or 1023, $275 to $600 fee) to reinstate. If you discover an error after filing, file an amended 990-EZ (check the "amended return" box at the top). The IRS doesn't penalize good-faith corrections unless they reveal unreported income or a serious compliance issue. If you underreported revenue by $10,000, amend immediately and include an explanation in Schedule O. If you can't file on time, submit Form 8868 before the deadline for an automatic six-month extension. It's a one-page form, e-filed in minutes, and it eliminates the late penalty as long as you file within the extension period. ^[4]

Where do you file Form 990-EZ?

You must e-file 990-EZ through an IRS-approved software provider or an authorized e-file transmitter. Paper filing is no longer accepted for most organizations. ^[5] IRS Free File is available if your organization qualifies (typically small nonprofits with gross receipts under $200,000). Check the IRS Free File page at https://www.irs.gov/filing for the current list of partners. Commercial software providers include TaxAct, TaxSlayer, ExpressTaxExempt, and others. You create an account, answer the interview questions, and the software generates the 990-EZ XML file and transmits it to the IRS. You get a confirmation within 24 to 48 hours. If you use a CPA or tax preparer, they e-file on your behalf. Make sure they give you a copy of the filed return and the IRS acknowledgment. Some states also require you to file a copy with the state charity registration office. California, New York, and several others accept the federal 990-EZ as part of your state renewal, but you must submit it through their portal or mail a copy. Check with your state attorney general or charity registration office to confirm the state-level requirement.

What are common mistakes on Form 990-EZ?

Mixing up gross receipts and net income. Line 9 asks for total revenue; line 18 asks for total expenses; line 19 is the difference. Don't report net fundraiser proceeds on line 6; report gross revenue on 6a, direct expenses on 6b, and the net on 6c. Leaving Part III program descriptions blank or vague. "Support youth sports" isn't enough. The IRS wants to see: "Funded uniforms, equipment, and travel for 180 student-athletes in soccer, basketball, and track, spending $52,000 on program services." Be specific. Forgetting Schedule A. If you're a 501(c)(3), Schedule A is required. Without it, the IRS assumes you're a private foundation, and you face stricter rules and excise taxes. Not reporting officer compensation correctly. If your treasurer received a $500 stipend, disclose it on line 5 of Part IV. Even small amounts count. Unreported compensation looks like you're hiding something. Missing the extended deadline. You file Form 8868 for an extension but forget to calendar the new due date. The extension isn't a free pass; it's a new, firm deadline. Rounding errors in Part II. Your end-of-year cash balance on line 22 must match your bank statement (or the sum of all accounts if you have multiple). Off by $1 is fine; off by $1,000 triggers questions. Including in-kind donations without proper documentation. If a parent donated $5,000 of equipment, you can report it on line 1, but you need a written acknowledgment letter stating the item and fair market value. Without documentation, don't report it. Not saving a copy. The IRS doesn't mail you a paper copy of your e-filed return. Download and save the PDF confirmation and the return itself. You'll need it for state filings, grant applications, and your own records.

Frequently asked questions

What does a treasurer do?

A treasurer manages the nonprofit's money: deposits, payments, reconciles bank accounts, prepares financial reports, and files the annual tax return (990-EZ or 990). The treasurer also keeps receipts and donor records, drafts the budget, and reports the financial position to the board at every meeting. It's the single most important compliance role in a booster club or PTO.

What is a treasurer?

A treasurer is the elected or appointed officer responsible for an organization's finances. In a booster club, the treasurer collects dues and donations, pays bills, tracks every dollar, and files the IRS Form 990-EZ or 990-N. The treasurer also signs checks (often with a co-signer) and maintains the books for audit or handoff to the next treasurer.

What do treasurers do in a booster club?

Booster club treasurers deposit fundraiser proceeds, write checks for uniforms and equipment, reconcile bank statements monthly, and prepare the Form 990-EZ at year-end. They also issue donation receipts, respond to parent questions about spending, and present a treasurer's report at every board meeting. The treasurer keeps canceled checks, invoices, and deposit slips for at least three years.

What is Form 990?

Form 990 is the IRS's annual information return for tax-exempt organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more. It's a 12-page form that requires detailed breakdowns of revenue, expenses, governance, and compensation. Smaller nonprofits file the shorter Form 990-EZ or the postcard Form 990-N instead.

What does a treasurer do in a club?

A club treasurer manages day-to-day finances: deposits checks, pays vendors, tracks income and expenses in a ledger or software, and reconciles the bank account monthly. The treasurer also prepares the annual Form 990-EZ, drafts the budget for board approval, and maintains records for audit. Many club treasurers also handle membership dues collection and financial reporting to members.

What does a club treasurer do?

A club treasurer keeps accurate financial records, manages the bank account, pays bills on time, and files the IRS Form 990-EZ or 990-N each year. The treasurer also prepares monthly financial reports, helps the board set the budget, and ensures every transaction has a receipt or invoice. Transparency and documentation are the core duties.

What is a 990 tax form?

A 990 tax form is the IRS's annual information return for tax-exempt organizations. It's not a tax return in the income-tax sense; nonprofits don't pay tax on most revenue. Instead, the 990 reports income, expenses, programs, governance, and officer compensation so the IRS can verify you're operating as a legitimate nonprofit and not enriching insiders.

What is the 990?

The 990 is the IRS form tax-exempt nonprofits file each year to report revenue, expenses, and activities. There are three versions: 990-N (under $50,000 receipts), 990-EZ ($50,000 to $200,000 receipts), and the full 990 ($200,000 or more receipts). All three are public records, and filing late or not at all can cost your tax-exempt status.

Can you file Form 990-EZ by mail?

No. The IRS requires nearly all Form 990-EZ filers to e-file. Paper filing is no longer accepted except in rare cases of hardship or religious objection. You must use IRS-approved software or an authorized e-file transmitter. Many free and low-cost options exist, so the e-file requirement isn't a financial barrier for most groups.

Do you need an accountant to file Form 990-EZ?

No, but it helps if your books are complex or you're filing for the first time. Many booster treasurers self-file using software like TaxAct or ExpressTaxExempt for $50 to $150. If your records are clean and you understand basic nonprofit accounting, you can do it yourself. Hire a CPA if you have unusual transactions, missed prior years, or the board wants professional review.

What if my booster club had $48,000 in receipts last year?

File Form 990-N, the electronic postcard. It takes five minutes online at https://www.irs.gov/form990n. You don't need to report detailed financials; just confirm your EIN, address, and that receipts were under $50,000. If you mistakenly file 990-EZ, the IRS accepts it, but 990-N is faster and free.

What happens if you skip Form 990-EZ and file 990-N instead?

The IRS will reject your 990-N if your gross receipts were $50,000 or more. You'll get a notice saying you must file 990-EZ or the full 990. If you don't correct it before the deadline (or extended deadline), you owe the $20-per-day late penalty. Don't guess; use the correct form for your receipts and asset levels.

How long does it take to prepare Form 990-EZ?

If your books are reconciled and accurate, plan 4 to 8 hours for a first-time 990-EZ: gathering records, answering the questions, drafting program descriptions, and e-filing. Experienced treasurers with clean books can finish in 2 to 3 hours. Add time if you need to reconcile months of messy transactions or research a question you don't understand.

Where can parents see our filed Form 990-EZ?

Form 990-EZ is a public record. Anyone can request a copy from your organization, pull it from the IRS via a written request, or view it on sites like GuideStar or ProPublica's Nonprofit Explorer. Many booster clubs and PTOs proactively post the 990-EZ on their website or hand out copies at the annual meeting to build trust and transparency.

Sources

1. IRS, Form 990-EZ Instructions: Form 990-EZ is for organizations with gross receipts under $200,000 and total assets under $500,000; late filing penalty is $20 per day up to $10,500 or 5% of gross receipts.
2. IRS Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities: Maintain complete books and records, including receipts, canceled checks, and bank statements, for at least three years after filing.
3. IRS, Form 8868 Instructions: Form 8868 provides an automatic six-month extension for filing Form 990-EZ; the extension request must be filed before the original due date.
4. IRS, Schedule G (Form 990 or 990-EZ) Instructions: Schedule G is required if gaming gross revenue exceeds $15,000, or if any single event had gross revenue over $5,000.
5. IRS Publication 1771, Charitable Contributions Substantiation and Disclosure Requirements: Donors must receive a written acknowledgment for contributions of $250 or more, including a description of non-cash donations and a statement of fair market value.