Nonprofit Tax Returns - 990s (Part 1) - Quiz, Flashcards & Trivia

1. Which forms do public charities generally file as a Return of Organization Exempt from Income Tax?

990, 1120, SS4

990N, 990EZ, 990

990PF, 1120, 1040

990EZ, 1010, SS4

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.

Explanation

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.

2. A 501c3 approved organization may file form 990-N (e-postcard), if the gross revenues for the reported period were:

Less than $50K

More than $50K but less than $200K

More than $200K

More than $50K but less than $150K

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.

Explanation

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.

3. Each nonprofit organization that files f990 or f990-EZ must file …..…. of the tax return:

Schedule B – Schedule of Contributors

Schedule A – Public Charity Status & Public Support

Schedule L – Transactions With Interested Persons

Schedule G – Supplemental Information Regarding Fundraising or Gaming Activities

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.

Explanation

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.

4. 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?

Schedule O – Supplemental Information to form 990 or 990-EZ

Schedule G - Supplemental Information Regarding Fundraising or Gaming Activities

Schedule L - Transactions With Interested Persons

Schedule B - Schedule of Contributors

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.

Explanation

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.

5. The nonprofit's tax year ends in December 31^st. When is the deadline to file a tax return?

April 15th

June 30th

May 15th

November 30th

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.

Explanation

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.

6. Which tax return is also referred as an "e-postcard"?

Form 990-N

Form 990-EZ

Form 990-E

Form 990

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."

Explanation

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."

7. Form 990-EZ does NOT require nonprofit's:

Board of Directors’ names, mailing addresses and working hours

Mission & Accomplishments

Names and mailing address of large contributors (over $5K/year)

List of all volunteers (names & mailing addresses)

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.

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.

8. Nonprofit organizations have to file a tax return:

By the 15th day of the fifth month after the organization’s annual accounting period

By the 15th day of the sixth month after the organization’s annual accounting period

By the 15th day of the fourth month after the organization’s annual accounting period

By the 15th day of the second month after the organization’s annual accounting period

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.

Explanation

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.

9. Form 990-N does NOT require organization's:

Employer Identification Number (EIN)

Mailing address

Accomplishments

None of the above

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.

Explanation

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.

10. The organization's tax exempt status will be revoked if the nonprofit fails on filing a tax return for …. consecutive years:

2

3

4

5

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.

Explanation

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.