What is IRS Form 990?

IRS Form 990 is a nonprofit organization’s annual tax return. While nonprofits with 501(c)(3) tax exemption status might not pay federal taxes, they still must file IRS Form 990 annually (we address a few exceptions below). Filing a Form 990 demonstrates that the nonprofit is conducting business that complies with its public, nonprofit responsibilities.

In addition, IRS Form 990 provides the IRS with an overview of the nonprofit’s activities throughout the last fiscal year. IRS form 990 is made public and available to donors, which in turn helps donors understand how the nonprofit operates and is managed. 

Filing this form ensures that nonprofits conduct their charity business in a way that complies with their public nonprofit responsibilities. In addition, filing the IRS 990 Form provides the IRS with an overview of your activities throughout the last fiscal year. Filings IRS Form 990 also provides transparency to current and potential donors, as IRS Form 990o helps donors understand how your nonprofit organization operates and is managed.

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