Nonprofit Tax Returns - 990s (Part 1)
- 1.
A nonprofit “XYZ” has two companies that each contributed $5,500 last tax year. The Board of Directors are preparing f990-EZ. The nonprofit must list the names, addresses and contributions of these donors. Which schedule would these donors’ information appear?
- A.
Schedule O – Supplemental Information to form 990 or 990-EZ
- B.
Schedule G - Supplemental Information Regarding Fundraising or Gaming Activities
- C.
Schedule L - Transactions With Interested Persons
- D.
Schedule B - Schedule of Contributors
Correct Answer
D. Schedule B - Schedule of ContributorsExplanation
The correct answer is Schedule B - Schedule of Contributors. This schedule is used to list the names, addresses, and contributions of donors for the nonprofit organization.Rate this question:
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- 2.
Each nonprofit organization that files f990 or f990-EZ must file …..…. of the tax return:
- A.
Schedule B – Schedule of Contributors
- B.
Schedule A – Public Charity Status & Public Support
- C.
Schedule L – Transactions With Interested Persons
- D.
Schedule G – Supplemental Information Regarding Fundraising or Gaming Activities
Correct Answer
B. Schedule A – Public Charity Status & Public SupportExplanation
Nonprofit organizations that file f990 or f990-EZ tax returns are required to file Schedule A - Public Charity Status & Public Support. This schedule provides information about the organization's public charity status and the level of public support it receives. It includes details such as the organization's mission, activities, and sources of revenue. This schedule helps to determine the organization's eligibility for certain tax exemptions and to ensure transparency and accountability in its operations.Rate this question:
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- 3.
Nonprofit organizations have to file a tax return:
- A.
By the 15th day of the fifth month after the organization’s annual accounting period
- B.
By the 15th day of the sixth month after the organization’s annual accounting period
- C.
By the 15th day of the fourth month after the organization’s annual accounting period
- D.
By the 15th day of the second month after the organization’s annual accounting period
Correct Answer
A. By the 15th day of the fifth month after the organization’s annual accounting periodExplanation
Nonprofit organizations have to file a tax return by the 15th day of the fifth month after the organization's annual accounting period because this is the standard deadline set by the Internal Revenue Service (IRS) for nonprofit organizations to submit their tax returns. Filing the tax return within this timeframe ensures that the organization remains in compliance with tax regulations and avoids any penalties or legal issues.Rate this question:
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- 4.
Which forms do public charities generally file as a Return of Organization Exempt from Income Tax?
- A.
990, 1120, SS4
- B.
990N, 990EZ, 990
- C.
990PF, 1120, 1040
- D.
990EZ, 1010, SS4
Correct Answer
B. 990N, 990EZ, 990Explanation
Public charities generally file Form 990, Form 990EZ, and Form 990N as a Return of Organization Exempt from Income Tax. These forms are specifically designed for tax-exempt organizations to report their financial information and ensure compliance with tax regulations. Form 990N is for small tax-exempt organizations with gross receipts less than or equal to $50,000. Form 990EZ is for organizations with gross receipts less than $200,000 and total assets less than $500,000. Form 990 is for larger organizations with gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000.Rate this question:
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- 5.
A 501c3 approved organization may file form 990-N (e-postcard), if the gross revenues for the reported period were:
- A.
Less than $50K
- B.
More than $50K but less than $200K
- C.
More than $200K
- D.
More than $50K but less than $150K
Correct Answer
A. Less than $50KExplanation
A 501c3 approved organization may file form 990-N (e-postcard) if their gross revenues for the reported period were less than $50K. This form is specifically designed for small tax-exempt organizations with very minimal annual gross receipts.Rate this question:
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- 6.
The nonprofit’s tax year ends in December 31st. When is the deadline to file a tax return?
- A.
April 15th
- B.
June 30th
- C.
May 15th
- D.
November 30th
Correct Answer
C. May 15thExplanation
The deadline to file a tax return for the nonprofit is May 15th. This is because the nonprofit's tax year ends on December 31st, and according to the IRS guidelines, tax returns for organizations with a calendar tax year are generally due on the 15th day of the fifth month after the end of the tax year. Therefore, May 15th is the correct deadline for filing the tax return.Rate this question:
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- 7.
Which tax return is also referred as an “e-postcard”?
- A.
Form 990-N
- B.
Form 990-EZ
- C.
Form 990-E
- D.
Form 990
Correct Answer
A. Form 990-NExplanation
Form 990-N is also referred to as an "e-postcard" because it is an electronic filing option for small tax-exempt organizations to report their annual information to the IRS. This form is specifically for organizations with gross receipts less than or equal to $50,000 per year. It is a simplified version of the Form 990 and can be filed online, hence the term "e-postcard."Rate this question:
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- 8.
Form 990-N does NOT require organization’s:
- A.
Employer Identification Number (EIN)
- B.
Mailing address
- C.
Accomplishments
- D.
None of the above
Correct Answer
C. AccomplishmentsExplanation
Form 990-N is a tax form used by small tax-exempt organizations to provide the IRS with basic information about their operations. It does not require organizations to report their accomplishments. Instead, it focuses on collecting essential details such as the organization's EIN and mailing address. Accomplishments are not a mandatory component of this form as they are not directly relevant to the organization's tax reporting requirements.Rate this question:
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- 9.
The organization’s tax exempt status will be revoked if the nonprofit fails on filing a tax return for …. consecutive years:
- A.
2
- B.
3
- C.
4
- D.
5
Correct Answer
B. 3Explanation
If a nonprofit organization fails to file a tax return for three consecutive years, their tax exempt status will be revoked. This means that the organization will no longer be exempt from paying taxes on their income and may be subject to penalties and fines. Filing a tax return is a legal requirement for nonprofits to maintain their tax exempt status and failure to do so can have serious consequences for the organization.Rate this question:
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- 10.
Form 990-EZ does NOT require nonprofit’s:
- A.
Board of Directors’ names, mailing addresses and working hours
- B.
Mission & Accomplishments
- C.
Names and mailing address of large contributors (over $5K/year)
- D.
List of all volunteers (names & mailing addresses)
Correct Answer
D. List of all volunteers (names & mailing addresses)Explanation
Form 990-EZ does not require nonprofit organizations to provide a list of all volunteers' names and mailing addresses. This information is not necessary for the purpose of reporting financial information and other relevant details about the organization. The form primarily focuses on financial data, governance, and program activities. While it may be beneficial for nonprofits to maintain records of their volunteers, this specific information is not required to be disclosed on Form 990-EZ.Rate this question:
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Current Version
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Mar 20, 2023Quiz Edited by
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Sep 21, 2015Quiz Created by
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