How to Complete the Balance Sheet on Form 990-EZ? (Use Case)

The purpose of a Balance Sheet on Form 990-EZ is to provide the IRS with a summary of your organization’s financial status.

You should report the value of these financial elements at the beginning (Column A) and end of the tax year (Column B).

The total assets or fund balances you reported in Part II, line 27, must match the sum of net assets or fund balances at end of year reported in Part I, line 21.

In this case, the Net assets or fund balances at end of year (Line 27) is $5,500 the Net assets or Fund Balances(Line 27) will be calculated by the sum of Lines 22 and 23, corresponding columns respectively.

Note: Include other assets on Line 24 by specifying them in Schedule O, if applicable. These assets will be added to lines 23 and 24 to derive the total in Line 27.

Beginning of the tax year (A) = $7,500
End of the tax year (B) = $7,500

Now, here are the liabilities that the organization had during the corresponding tax year. To add the total liabilities, you must specify the details of the liabilities in Schedule O.

Now, the total liabilities (Line 26) will be deducted from the sum of line 22 (Cash, savings, and investments), line 23 (Land and buildings), and line 24 (other assets, if applicable) to derive the net assets or fund balances.