Question 1

&#x2705; How should organizations record the payment transactions made with a controlled entity on 990-EZ?

Accepted Answer

If an organization has engaged in a transaction with a controlled entity, and if the transaction value exceeded $50,000, then they are supposed to file Form 990 instead of 990-EZ and must attach Schedule R along with the information return. read more

Question 2

&#x2705; Do I need to state the compensation of every official serving in my organization on Form 990-EZ?

Accepted Answer

Yes, you must list the compensation paid to every individual of your organization while filing the annual information return. It includes every officer, director, trustee, or key employee. read more

Question 3

&#x2705; Our organization filed 990-EZ on time. But the IRS imposed a penalty on us, what would be the reason?

Accepted Answer

The IRS would have imposed a penalty for any of the following conditions. read more

Question 4

&#x2705; What needs to be done if your organization maintained some donor-advised funds during the tax year?

Accepted Answer

If your organization maintained some donor-advised funds for the year, then your organization is considered as a sponsoring organization, under Section 501(c)(3). read more

Question 5

&#x2705; What type of contributions to be reported in Form 990-EZ?

Accepted Answer

Here is the list of contributions that must be listed under Line 1, Part I, Revenue, Expenses, and Changes in Net Assets or Fund Balances of Form 990-EZ read more

Question 6

&#x2705; What are the program service revenues that must be listed in Form 990-EZ?

Accepted Answer

Program service is a major objective of a tax-exempt organization to fulfill the purpose or mission under which it was started. These organizations generally perform activities like adoptions, recreation for the elderly, rehabilitation, or publication of journals or newsletters. read more

Question 7

&#x2705; What type of miscellaneous expenses included in Form 990-EZ?

Accepted Answer

The expenses made by an organization such as penalties, fines, and judgments; unrelated business income taxes; insurance interest; depreciation read more

Question 8

&#x2705; What type of changes in an organizing document must be reported while filing Form 990-EZ?

Accepted Answer

Your organization must report the following significant changes made in the organizing documents such as the name of the organization, its exempt purpose, or mission. read more

Question 9

&#x2705; Is any additional reporting needed for organizations that received income from an unrelated business?

Accepted Answer

Yes, if your organization has received a gross income of $1,000 or more from an unrelated business or trades for the tax year, then it must file Form 990-T along with the 990-EZ return. read more

Question 10

&#x2705; How to fill Contributions, Gifts, Grants, and Similar Amounts $5,000 or more you receive?

Accepted Answer

To fill Contributions, Gifts, Grants, and Similar Amounts $5,000 or more you receive, provide the contributor's name, the nature of the contributor (individual, associated organization, and etc.,) and specify the type of contributions- cash or noncash. read more

Question 11

&#x2705; What is Form 990-EZ?

Accepted Answer

Form 990-EZ is an annual information return required to be filed with the IRS by numerous organizations exempt from income tax under section 501(a), as well as certain political groups and nonexempt charity trusts. read more

Question 12

&#x2705; What are the penalties for not filing or incorrect filing of Form 990-EZ?

Accepted Answer

If Non-profits and Tax-Exempt organizations don’t file form 990-EZ or doesn't file with the correct information and provide the proper reasons for the late filing or incorrect filing, penalty will be imposed for the organization. read more

Question 13

&#x2705; Who must file Form 990-EZ?

Accepted Answer

IRS Form 990-EZ must be filed by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations. read more

Question 14

&#x2705; Which organizations are not required to file Form 990-EZ?

Accepted Answer

Some tax-exempt organizations do not have to file IRS Form 990-EZ even if their gross receipts are lesser than $200,000 for the tax year or $500,000 of total assets at the end of the tax year (except organizations under Section 509(a)(3)). read more

Question 15

&#x2705; What is the group exemption number?

Accepted Answer

A group exemption number (GEN) is a four-digit number assigned by the IRS to the central/parent organization of a group with a group exemption letter. read more

Question 16

&#x2705; How do I file an extension for Form 990-EZ?

Accepted Answer

Suppose your organization couldn't file IRS Form 990-EZ return by the due date (15th day of the 5th month) for the following tax year. read more

Question 17

&#x2705; How can I determine contributions from membership dues while filing Form 990-EZ?

Accepted Answer

An organization always offers the member benefits in return for the dues, which will not be considered as contributions. But charitable organizations are allowed to disregard some of the membership benefits and calculate it at the donor's contribution. read more

Question 18

&#x2705; I'm filing my organization's last return. Should I do any additional reporting along with Form 990-EZ?

Accepted Answer

If your filing your organization's final return which is either going out of business or disposing of more than 25% of its net assets through sale, exchange, or other disposition read more

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