Form 990-EZ explained: what it is and who files it

Last updated 2026-07-24

What is Form 990-EZ and who has to file it?

Form 990-EZ (Short Form Return of Organization Exempt From Income Tax) is the IRS's middle-tier annual reporting form for tax-exempt organizations ^[1]. It sits between the simple 990-N postcard and the full Form 990. You must file 990-EZ if your organization's gross receipts are normally $50,000 to $200,000 and your total assets at year-end are less than $500,000 ^[1]. "Gross receipts" means all the money that came in: membership dues, donations, fundraiser proceeds, concession sales, raffle tickets, everything before you subtract expenses. If you're below $50,000, you can file the simpler Form 990-N. If you're above $200,000 or your assets hit $500,000 or more, you're required to file the full Form 990. Most booster clubs, school PTOs, and volunteer youth-sports leagues fall into the 990-EZ zone. You run a few big fundraisers, collect dues, maybe operate a snack shack. Total receipts land between $60,000 and $180,000. That's classic 990-EZ territory. The form is four pages of core questions plus a handful of schedules (extra attachments) you'll probably need. It asks for your revenue and expense summary, a brief balance sheet, details about your officers and key employees, and explanations of your programs. The IRS uses this return to confirm you're still operating as a tax-exempt charity and not generating private profits.

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

As the club treasurer, you're usually the person who prepares the 990-EZ. What a treasurer does day to day, tracking deposits, cutting checks, reconciling the bank account, culminates in this annual filing. The IRS Form 990 family is how you prove to the government and your members that you handled the money correctly. Here's the concrete work: Gather a full year of financial records. You need your bank statements, deposit slips, receipts, check stubs, and any payment-processor reports (PayPal, Venmo, Square) for your entire fiscal year. Most groups use July 1, June 30 or January 1, December 31. Booster clubs often align with the school year. Summarize revenue by type. The 990-EZ asks you to break out contributions and grants, program service revenue (admissions, tickets sold), membership dues, investment income, fundraising events, and other revenue. You'll report gross receipts from fundraising events and then subtract the direct expenses of those events to show net fundraising income ^[1]. Summarize expenses by category. You'll list total expenses, then break them out into grants and similar amounts paid, benefits paid to members, salaries and wages, professional fees, occupancy, and other expenses. The form wants function categories too: program services, management and general, fundraising ^[1]. Prepare a simple balance sheet. Report your cash, accounts receivable, inventory, land and buildings if any, liabilities, and net assets at the beginning and end of the year. Most small groups own almost nothing besides a checking account balance, so this section is short. List your officers and key employees. Name, title, average hours per week, and compensation. For all-volunteer groups, compensation is zero across the board. If you pay a league director or bookkeeper, report it. Answer yes/no questions about governance and activities. The 990-EZ includes about two dozen compliance questions: Did you engage in lobbying? Did you operate a school? Did you make grants to individuals? Did you have unrelated business income? Did you liquidate or dissolve? For a typical booster club, almost every answer is "No." Complete any required schedules. Schedule A (public charity status) is nearly universal. Schedule B (list of large contributors) is required if you received any single donation over $5,000. Schedule G (fundraising events) is needed if you reported gaming or special-event income. Schedule O is where you write explanations for anything flagged elsewhere ^[2]. What a treasurer of a club does, in practice, is translate a shoebox (or spreadsheet) of transactions into this structured IRS format. It's not conceptually hard. It's detail work. Most treasurers spend 6 to 12 hours on a 990-EZ the first time, 3 to 5 hours in subsequent years once they know the layout.

When is Form 990-EZ due?

Your 990-EZ is due by the 15th day of the 5th month after your fiscal year ends ^[3]. If your fiscal year is the calendar year (January 1, December 31), your return is due May 15. If you run July 1, June 30, it's due November 15. The IRS counts months, not days, so a short February doesn't change the deadline. You can request an automatic six-month extension by filing Form 8868 before the original due date ^[3]. The extension gives you breathing room to finish the paperwork, but it does not extend the time to pay any tax owed (which is rare for a 990-EZ filer, since you're tax-exempt). Extensions are granted automatically; you don't need a reason. Missing the deadline, even with an extension, can cost you. If your return is more than 60 days late, the IRS will mail you a warning notice. If you stay late or skip filing for three consecutive years, the IRS will automatically revoke your tax-exempt status ^[4]. You lose your 501(c)(3) determination, your donors lose the ability to deduct contributions, and you have to apply for reinstatement (which costs $600 plus back filings). This happens to thousands of small groups every year. Set a calendar reminder for your deadline minus two weeks. Start the return at least a month early if it's your first time. If you wait until the week before, you'll discover missing records or unanswered questions and blow the deadline.

How do you actually file Form 990-EZ?

Form 990-EZ must be filed electronically ^[5]. The IRS stopped accepting paper 990-EZ returns for tax years ending July 31, 2021, and later. You have three main paths: IRS Free File (if eligible). If your organization's gross receipts were $200,000 or less, you may qualify for IRS Free File Fillable Forms, which lets you complete the return directly through the IRS website ^[6]. It's free but bare-bones: you type into PDF fields, the system does basic math checks, and you submit. No hand-holding, no interview-style questions. Commercial e-file software. Most treasurers use a paid service like TaxAct Exempt Organization (around $100 per return), ExpressTaxExempt ($120, $200), or TaxSlayer Pro ($150, $250). These packages guide you through the form with plain-English questions, auto-fill schedules, and error checks before you transmit. Prices vary by feature set and state add-ons. All will e-file directly to the IRS. Hire a preparer. A CPA or EA who specializes in nonprofits will charge $500 to $1,500 to prepare and file your 990-EZ, depending on your location and complexity. This makes sense if you have unusual transactions (unrelated business income, large in-kind donations, property holdings) or if your board wants a professional signature. It's overkill if your only revenue is dues and a single fall fundraiser. Whichever path you choose, you'll need an Employer Identification Number (EIN) and the name and EIN of your organization exactly as they appear in IRS records. If your name changed or you moved, update your IRS file first with Form 8822-B ^[7]. After e-filing, you'll receive an electronic acknowledgment within 24 to 48 hours. Save that confirmation. The IRS will post your 990-EZ to its public database (the Exempt Organizations Business Master File) within a few months, and third-party sites like GuideStar and Candid will display it. Your return is public; anyone can read it ^[8].

What financial information goes on the 990-EZ?

Part I of the 990-EZ is your revenue and expense summary. You report: Revenue (Lines 1 to 9): - Contributions, gifts, grants, and similar amounts received (Line 1). This is donations, whether from parents, local businesses, or a community foundation.

• Program service revenue (Line 2). Money you charged for a service: tournament entry fees, clinic tuition, concession sales if they're part of your exempt purpose.
• Membership dues (Line 3).
• Investment income (Line 4). Interest on your checking account, usually a few dollars.
• Proceeds from fundraising events, including gaming (Line 6a), and the direct expenses of those events (Line 6b). The net is Line 6c.
• Proceeds from sales of assets (Line 7), rare for most groups.
• Other revenue (Line 8), such as rebates or refunds. Total revenue (Line 9) is the sum. Expenses (Lines 10 to 16): - Grants and similar amounts paid (Line 10). Scholarships to student athletes, donations to other charities.
• Benefits paid to or for members (Line 11). Rare; this is insurance or direct aid.
• Salaries, wages, other compensation (Line 12). Include payroll to any employee and contract payments to coaches or referees if you're treating them as employees.
• Professional fees and other payments to independent contractors (Line 13). Accountant, lawyer, insurance agent, DJ at your fundraiser.
• Occupancy, rent, utilities, maintenance (Line 14).
• Printing, postage, supplies (Line 15).
• Other expenses (Line 16). Everything else: uniforms, equipment, trophies, tournament registrations, bank fees, filing fees, website hosting, credit-card processing. Total expenses (Line 17). Excess or deficit for the year (Line 18) is Line 9 minus Line 17. That's your surplus (which you carry into next year) or your loss. Part II is a balance sheet: cash, other assets, liabilities, net assets at the start and end of the year. Most booster clubs have cash, maybe a savings account, sometimes prepaid expenses or inventory (spirit-wear in the closet). Liabilities might be outstanding checks or a small credit-card balance. Net assets are what's left. The form enforces the accounting identity: assets = liabilities + net assets ^[1]. Part III asks you to describe your primary exempt purpose and your program service accomplishments. Write two or three sentences about what you actually do: "We support the Smith High School athletic programs by funding equipment, uniforms, facility improvements, and scholarships for student athletes." Then list your three largest program services by expense and describe each in a couple of sentences. Part IV lists your officers, directors, trustees, and key employees. You'll give name, title, hours per week, and reportable compensation. If everyone is a volunteer, hours might be 2 per week and compensation is zero. If you have a paid league director working 20 hours a week at $15,000 a year, you report that. Part V is the yes/no checklist. Did you have unrelated business gross income of $1,000 or more? Did you engage in direct or indirect political campaign activities? Did you file all required federal employment tax returns? Did you maintain required books and records? These are compliance gates. If you answer "Yes" to an unexpected question, the IRS may follow up or require an additional schedule. Schedule A is mandatory for 990-EZ filers. It's where you confirm your public charity status. Most booster clubs and PTOs are "509(a)(2) organizations" (publicly supported by memberships, donations, and program fees) or "509(a)(3) supporting organizations" (supporting a school, which is itself a public charity). You'll check the right box and, if required, fill in a public-support test calculation ^[2]. The math is straightforward: add up your donations and program income from the last five years, divide by total support, and show you meet the one-third or one-tenth threshold.

What schedules do you need to attach to the 990-EZ?

The IRS publishes a dozen schedules that can attach to the 990 tax form. Only a few are common for 990-EZ filers: Schedule A (Public Charity Status and Public Support). Required for almost everyone. You confirm which category of public charity you are and, depending on the category, provide a five-year public-support calculation ^[2]. Schedule B (Schedule of Contributors). Required if any single donor gave $5,000 or more during the year. You list the donor's name and address and the amount, but this schedule is not made public. The IRS keeps it confidential ^[9]. Schedule G (Supplemental Information Regarding Fundraising or Gaming Activities). Required if you reported income on Part I, Line 6a (fundraising events) or if you operated bingo, pull-tabs, or raffle games. You'll break down each event's gross receipts, direct expenses, and net income. You'll also answer questions about whether the activity was conducted by volunteers or paid staff and whether any revenue went to a professional fundraiser ^[2]. Schedule O (Supplemental Information to Form 990 or 990-EZ). This is a free-form narrative attachment. You use it to explain anything that wouldn't fit in the line-item spaces, answer questions that required a "Yes" with detail, or provide context. For example, if you checked "Yes" to loans to officers, you'd attach a Schedule O explanation with names, terms, and amounts. Schedule L (Transactions With Interested Persons). Required if you answered "Yes" to any question about loans, business transactions, or excess benefit transactions with officers or directors. Most all-volunteer groups skip this entirely. Schedule M (Noncash Contributions). Required if you received more than $25,000 in noncash contributions (donated goods, services, or property). Rare for most groups. Schedule N (Liquidation, Termination, Dissolution, or Significant Disposition of Assets). Required only if you dissolved or gave away major assets. In practice, a typical booster club or PTO files the core 990-EZ plus Schedule A and, if you ran a raffle or carnival, Schedule G. That's it. If you received a $10,000 donation from a single business sponsor, add Schedule B. The software or preparer will prompt you when a schedule is required; you don't have to guess.

What is a treasurer, and how does the 990-EZ fit their role?

A treasurer is the officer or volunteer responsible for managing an organization's money and financial records. What does a treasurer do in a club? You receive deposits, pay bills, reconcile bank accounts, track income and expenses, prepare financial reports for the board, and file required tax and regulatory paperwork. The 990-EZ is the capstone of what a treasurer does each year. Every deposit you logged, every check you wrote, every receipt you filed flows into this one return. It's your proof to the IRS, your state charity regulator, and your own membership that you handled the funds according to your exempt purpose and kept accurate books. What does a club treasurer do leading up to the 990-EZ? You maintain transaction records in real time. Most treasurers use a spreadsheet or simple accounting software (QuickBooks Online, Wave, or even a well-organized Google Sheet). You categorize income by source (donations, dues, fundraiser proceeds) and expenses by type (equipment, scholarships, admin costs). You reconcile the bank statement every month so the balance in your records matches the bank balance. You save receipts and invoices in a folder, physical or digital. Then, at year-end, you close the books: finalize all deposits and checks for the fiscal year, print or export your full transaction register, and summarize the numbers by category. You cross-check your summary against the bank statements. You pull last year's 990-EZ (or 990-N, if you filed that before) to see if your net assets carried forward correctly. You gather your officer list and any documents about large donations, fundraising events, or unusual transactions. Finally, you sit down with the 990-EZ form (on screen, in the software) and type in the numbers. The software does the math, flags obvious errors, and generates the required schedules. You review the completed return with your board president or treasurer-elect, get the board's approval (formally or informally), and submit it before the deadline. This cycle, record, report, file, is the heartbeat of what a treasurer of a club does. The 990-EZ is the annual heartbeat. Most new treasurers find the 990-EZ intimidating the first time. It's a federal form, it's public, and you're signing under penalty of perjury. In reality, if your bookkeeping is decent all year, filling out the 990-EZ is data entry. The hard part is the daily discipline of tracking everything so you have the data when you need it. If you're stepping into the treasurer role and facing your first 990-EZ, consider a structured onboarding resource. The BoosterLedger Treasurer Kit gives you a full year of monthly checklists, transaction logs, and filing reminders personalized for your state, so you're never guessing what to do next.

What is the difference between Form 990, 990-EZ, and 990-N?

990-N	≤ $50,000	any	electronic postcard, 8 fields	minimal: name, EIN, address, confirmation
990-EZ	$50,000, $200,000	< $500,000	4 pages + schedules	moderate: revenue/expense summary, balance sheet, program narrative, officer list
990	> $200,000 or ≥ $500,000 assets	any	12 pages + schedules	extensive: detailed financials, governance policies, executive comp, program descriptions, functional expense allocation	If you're under $50,000, you can file the 990-N postcard online. It takes 10 minutes. No financial details required, just proof you still exist [10]. If you're between $50,000 and $200,000, you must file the 990-EZ (you can't drop back to the postcard) unless your assets hit $500,000, in which case you jump to the full 990. If you're over $200,000, you must file the full 990 no matter your asset level [1]. The 990-EZ is the sweet spot for most booster clubs and PTOs. You're big enough to need real financial reporting, but not so big that you need pages of governance attestations and compensation comparability studies. The form asks for the numbers that matter, where the money came from and where it went, without requiring the narrative and policy disclosures of the full 990. One common mistake: groups that qualify for 990-EZ sometimes file the full 990 because their software defaults to it or their preparer is used to the long form. You're allowed to file the full 990 if you want (it's more disclosure, not less), but you're doing extra work for no benefit. Stick with the 990-EZ if you qualify.

The IRS offers three versions of the Form 990 annual return, scaled to organization size: | Form | Gross receipts | Total assets | Length | Detail level |

What are the most common mistakes on Form 990-EZ?

Misclassifying revenue. Treasurers often confuse contributions (Line 1) with program service revenue (Line 2). Contributions are gifts with no expectation of a specific benefit: a parent donates $100 to the general fund. Program service revenue is a fee for a service or product: a parent pays $100 for a jersey with the team name. The IRS cares because too much program revenue can jeopardize your public-charity classification. If you're not sure, ask: did the payer get something of roughly equal value in return? If yes, it's program revenue. If no, it's a contribution. Omitting or double-counting fundraising event expenses. Part I, Line 6 asks for gross receipts from fundraising events, then direct expenses, then net. Direct expenses are only the costs of putting on that specific event: food, entertainment, printing for that night. They do not include general overhead (your treasurer's computer, your website hosting, last month's bank fee). Treasurers sometimes report gross receipts on Line 6a but forget to enter the expenses on Line 6b, making it look like the event was 100% profit. Or they count the same expense twice: once on Line 6b and again in "Other expenses" on Line 16. Use Line 6b for event-specific costs, Line 16 for everything else. Forgetting Schedule A. Almost every 990-EZ filer must attach Schedule A. The software usually auto-generates it, but if you're preparing by hand or using the IRS fillable PDF, you have to create it yourself. Without Schedule A, your return is incomplete and the IRS will send it back. Wrong net assets. Part II, Line 22 (net assets at end of year) must equal Part II, Line 21 (net assets at beginning of year) plus or minus the excess/deficit from Part I, Line 18. If those numbers don't tie, you either made an arithmetic error or you forgot to include a transaction. The software will catch this, but manual preparers miss it. Missing or incorrect officer information. Part IV requires name, title, average hours per week, and compensation for every officer and director. "Average hours" is an estimate; the IRS isn't auditing your time logs. But "0 hours" for your president is a red flag. Most volunteer officers spend at least 1 to 3 hours per week. Compensation includes salary, bonus, and the value of any benefits. If you're all volunteers, this column is zeros. If you paid anyone, report it exactly as you reported it on their W-2 or 1099-NEC. Leaving narrative fields blank. Part III asks you to describe your mission and your program accomplishments. Treasurers sometimes skip this or write a single vague sentence. The IRS wants to see what you actually did with the money. Write three to five sentences about your programs: "We funded uniforms and equipment for 12 sports teams serving 450 students. We provided $15,000 in scholarships to 10 graduating seniors. We upgraded the baseball field lighting to allow evening practices." Real activities, real numbers. Not keeping a copy of the filed return. After you e-file, save the PDF confirmation and the final return. The IRS will make it public eventually, but it takes months. Your bank, grantmakers, and state regulators may ask for a copy immediately. You should also keep the return in your permanent records for at least seven years, ideally forever .

Do you need to file a state return along with the 990-EZ?

Many states require nonprofits to register and file annual reports with the state charity office or attorney general, separate from the federal 990-EZ . The requirements vary widely: Charitable solicitation registration. If your organization solicits donations from the public, about 40 states require you to register before you ask and file an annual renewal. Some states (California, New York, New Jersey, Pennsylvania, Florida, among others) have detailed forms and fees. Others accept a simple online registration. Many states ask for a copy of your IRS determination letter and your most recent 990 or 990-EZ as part of the registration or renewal . Corporate annual report. If you incorporated as a nonprofit corporation, your state (usually the Secretary of State) will require an annual report listing your officers and registered agent. The fee ranges from $0 to $50, and the deadline is often different from the 990-EZ deadline. This is separate from the charity registration. State tax return. Most states exempt 501(c)(3) organizations from state income tax, but a few (Alabama, for instance) require a return even if you owe nothing. And if your organization had unrelated business income (you sold advertising, rented out your facility), you may owe state unrelated business income tax (UBIT) and need to file a state return. Raffle and gaming licenses. If you filed Schedule G because you ran a raffle, your state probably requires a separate raffle license or gaming registration. Some states (like Michigan and Minnesota) have detailed reporting and bonding requirements. Others (Texas, for example) have local permits . This is not part of the 990-EZ process, but it's on your treasurer to-do list. The bottom line: the federal 990-EZ does not replace your state filings. After you file the 990-EZ, check with your state attorney general or charity regulator and your Secretary of State to see what else you owe. Most state charity offices post a compliance guide on their website. Look for "charitable organization registration" or "annual filing requirements." If you're unsure, call them. State regulators are usually more helpful than you'd expect; they want you to file correctly. The BoosterLedger Treasurer Kit includes a personalized state-filing checklist so you know exactly what your state requires, with deadlines and links to the right forms.

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

First-time filers should budget 8 to 12 hours spread over two to four weeks. Returning filers who kept good records all year can finish in 3 to 6 hours, often in a single weekend. The time breaks down roughly like this: Gathering records and reconciling accounts (3 to 6 hours). Pull all your bank statements, transaction logs, receipts, and invoices. Reconcile your books to the bank. Make sure every deposit and check is accounted for. If you did this monthly all year, you're done in an hour. If you're six months behind, this is where you'll spend most of your time. Summarizing revenue and expenses by category (1 to 2 hours). If you used accounting software or maintained a categorized spreadsheet, this is one click. If you kept a handwritten check register, you'll go line by line and tally each category: donations, dues, fundraiser proceeds, equipment purchases, scholarships, insurance, bank fees, etc. Filling out the 990-EZ form (2 to 4 hours). If you're using software (TaxAct, ExpressTaxExempt), it will walk you through question by question. Type in your totals, answer the yes/no questions, enter your officer names, and write your program descriptions. The software auto-generates schedules and checks for math errors. If you're using the IRS PDF or paper form, add another hour for manual cross-checking and schedule creation. Reviewing and finalizing (1 to 2 hours). Print a draft. Read through every line. Does the net income (Line 18) make sense given what you know about the year? Do your officer hours and compensation look right? Does the narrative in Part III actually describe what you did? Show the draft to another board member. Catch typos and logic errors before you file. E-filing and saving confirmation (15 minutes). Hit submit, wait for the acknowledgment, save the PDF, and file it away. The first year takes longest because you're learning the form's language and layout. You'll second-guess classifications, re-read instructions, and Google terms like "program service revenue" and "net assets." The second year, you'll open last year's return and see exactly what you did. The third year, it's muscle memory. One shortcut: if your fiscal year ended months ago and you're scrambling to meet the deadline, focus on accuracy over perfection. Get the big numbers right (total revenue, total expenses, ending cash balance), answer the compliance questions honestly, and file on time. You can always file an amended 990-EZ later if you discover a mistake. Missing the deadline is worse than a minor error.

What happens if you don't file Form 990-EZ on time?

The IRS imposes a late-filing penalty of $20 per day, up to the lesser of $10,500 or 5% of your gross receipts for the year . For an organization with $100,000 in receipts, the maximum penalty is $5,000. For an organization with $300,000 (which should be filing the full 990, but say it's a 990-EZ by asset exception), the cap is $10,500. The penalty clock starts the day after your deadline, including extensions. If you're due November 15 and you file December 1, that's 16 days late: $320. The IRS usually sends a notice with the penalty amount and a payment coupon. You can request abatement (waiver) if you have reasonable cause, serious illness, natural disaster, fire that destroyed your records, but "we forgot" or "our treasurer quit" generally won't fly . Penalties aside, the bigger risk is automatic revocation. If your organization fails to file a required return (990, 990-EZ, or 990-N) for three consecutive years, the IRS automatically revokes your tax-exempt status ^[4]. Your effective date of revocation is the day after your third missed deadline. You're no longer a 501(c)(3). Donors lose the ability to deduct contributions. You may owe corporate income tax on your net income for the years you were revoked. To get your status back, you must apply for reinstatement. If you've been revoked for less than 15 months, you can file a streamlined reinstatement (Form 1023-EZ, $600 user fee, plus any missing 990s). If it's been longer, you have to file a full Form 1023 ($600) as if you're applying from scratch . This process takes months, sometimes over a year. Thousands of booster clubs, PTOs, and youth leagues have lost their exemption this way. The IRS publishes an auto-revocation list every quarter. Your organization's name appears on it, and any savvy donor or grant committee will see it. Your reputation takes a hit, even after you get reinstated. The fix is simple: file on time, every year. If you can't finish by the deadline, file Form 8868 for an automatic six-month extension before the original due date ^[3]. The extension form is one page, takes five minutes, and gives you until May 15 (calendar-year filers) or November 15 (July fiscal-year filers) an extra six months breathing room. There's no penalty for using the extension, and you can file it electronically through the same software you use for the 990-EZ.

Frequently asked questions

What does a treasurer do in a booster club or PTO?

A treasurer receives and deposits all funds, pays approved expenses, keeps accurate financial records, reconciles bank accounts monthly, prepares financial reports for the board, and files required tax returns (like the 990-EZ) and state reports. The treasurer is the guardian of the organization's money and the person legally responsible for financial compliance.

What is a treasurer in simple terms?

A treasurer is the volunteer or officer who manages an organization's money. They track income and spending, keep the bank account balanced, make sure bills get paid, and handle the paperwork the IRS and state require. In a club or nonprofit, the treasurer is usually a parent or volunteer serving a one- or two-year term.

What is Form 990 in plain language?

Form 990 is the IRS's annual information return for tax-exempt organizations. It's like a financial report card: you tell the IRS how much money you raised, how you spent it, who your officers are, and what programs you ran. The IRS uses it to make sure you're still operating as a charity and not generating private profit. The 990 comes in three versions (990-N, 990-EZ, and the full 990) based on your size.

What is a 990 tax form, and why is it called that?

The 990 is officially called the 'Return of Organization Exempt From Income Tax.' The '990' is just the IRS form number, like the 1040 for individual taxes. The form's purpose is to report a tax-exempt organization's financial activity each year. It's not a tax return in the sense of calculating tax owed; most filers owe zero tax. It's an information return that keeps your exemption valid.

Do I have to file the 990-EZ if we only had $60,000 in receipts?

Yes. Any organization with gross receipts between $50,000 and $200,000 must file the 990-EZ (or the full 990, which is longer). You are no longer eligible for the simple 990-N postcard once you cross $50,000. The threshold applies to your annual gross receipts before expenses.

Can I still file the 990-EZ on paper?

No. The IRS requires electronic filing of Form 990-EZ for all tax years ending July 31, 2021, and later. You must use IRS-approved e-file software, the IRS Free File system (if eligible), or hire a preparer who e-files. Paper returns are no longer accepted and will be rejected or returned.

What is the penalty for filing the 990-EZ late?

The IRS charges $20 per day the return is late, up to the lesser of $10,500 or 5% of gross receipts for the year. For a group with $100,000 in revenue, the maximum penalty is $5,000. If you miss three years in a row, the IRS will automatically revoke your tax-exempt status, which is far worse than any dollar penalty.

Is the 990-EZ public information?

Yes. Anyone can request a copy of your filed 990-EZ, and the IRS posts all 990s to a public database within a few months. Third-party sites like GuideStar, Candid, and ProPublica's Nonprofit Explorer republish them. Your financial details, officer names, and program descriptions are fully public. Schedule B (large donor names) is the only part the IRS keeps confidential.

Do I need to attach bank statements or receipts to the 990-EZ?

No. You do not attach bank statements, receipts, or invoices to the 990-EZ when you file. The form requires only summary numbers and attached schedules (like Schedule A and Schedule G). However, you must keep all underlying records for at least three years (the IRS recommends seven years) in case of an audit or a member request.

Can I file an amended 990-EZ if I made a mistake?

Yes. You can file an amended Form 990-EZ (checking the 'Amended return' box at the top) to correct errors or add missing information. The IRS does not have a specific deadline for amendments, but you should file as soon as you discover the mistake. Use the same e-file software you used originally, or work with a preparer. The amended return replaces the original in the public record.

What is the difference between the 990-EZ and the 990-N?

The 990-N is a simple electronic postcard for organizations with gross receipts of $50,000 or less. You enter just your name, EIN, address, and a few yes/no questions; no financial details. The 990-EZ is for organizations with $50,000 to $200,000 in receipts. It requires a full revenue and expense summary, a balance sheet, officer information, and several schedules. The 990-EZ takes hours; the 990-N takes 10 minutes.

Who signs the 990-EZ for our booster club?

An officer of the organization must sign the 990-EZ under penalty of perjury. Typically the president or treasurer signs. If you use a paid preparer, that person also signs in a separate section, but an officer signature is still required. The software will prompt you for a digital signature or PIN when you e-file.

Do we need a CPA to prepare the 990-EZ?

No. Most booster clubs, PTOs, and small youth leagues prepare their own 990-EZ using commercial software (TaxAct, ExpressTaxExempt) or the IRS Free File system. A CPA or enrolled agent can help if your finances are complex, unrelated business income, large property holdings, unusual transactions, or if your board wants professional assurance. Expect to pay $500 to $1,500 for a preparer. For a straightforward all-volunteer group, you can do it yourself.

What happens to our 990-EZ if we dissolve the organization?

You must file a final 990-EZ for the short year ending on your dissolution date, checking the 'Final return' box on the form. You'll also complete Schedule N (Liquidation, Termination, Dissolution) explaining how you distributed your remaining assets. IRS rules require that assets go to another 501(c)(3) or a government entity; they cannot go to members or founders personally. After the IRS processes your final return, your tax-exempt status ends and your EIN is closed.

Sources

1. IRS Form 990-EZ Instructions: Form 990-EZ is required for organizations with gross receipts between $50,000 and $200,000 and total assets under $500,000; the form includes revenue/expense summary, balance sheet, and officer information
2. IRS Form 8868 (extension) instructions: Form 990-EZ is due by the 15th day of the 5th month after fiscal year end; Form 8868 grants an automatic six-month extension
3. IRS Automatic Revocation of Exemption: Organizations that fail to file required returns for three consecutive years have their tax-exempt status automatically revoked
4. IRS Modernized e-File (MeF) for charities: Form 990-EZ must be filed electronically for tax years ending July 31, 2021, and later; paper filing is no longer accepted
5. IRS Free File for tax-exempt organizations: Organizations with gross receipts of $200,000 or less may qualify for IRS Free File Fillable Forms to complete and e-file the 990-EZ at no cost
6. IRS Form 8822-B (change of address for business): Exempt organizations must file Form 8822-B to update their address or name with the IRS before filing a 990-EZ under the new information
7. IRS Exempt Organizations Business Master File (EO BMF): The IRS posts all filed 990 returns to a public database; third-party aggregators like GuideStar republish them for public view
8. IRS Form 990-N electronic notice (e-Postcard): Organizations with gross receipts of $50,000 or less may file Form 990-N, an eight-field electronic postcard, instead of the 990-EZ
9. IRS Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities: Exempt organizations should maintain books and records for at least three years (IRS recommends seven years); filed 990s should be kept permanently
10. IRS Publication 557, Tax-Exempt Status for Your Organization: Late filing of Form 990-EZ incurs a penalty of $20 per day, up to $10,500 or 5% of gross receipts; reasonable-cause abatement is available