Nonprofit organizations must file an annual return with the IRS to preserve their tax-exempt status. Depending on the organization’s size and financial activity, it may need to file either Form 990-N or Form 990-EZ.
This page will help you understand the key differences between these forms, including eligibility criteria, filing requirements, and the information required.
What is Form 990-N?
- Form 990- N is also known as the e-Postcard, which is for very small tax-exempt organizations with gross receipts of $50,000 or less annually.
- It is simple and quick to complete; it requires only basic information. No detailed financials or schedules.
What is Form 990-EZ?
- Form 990-EZ is a shorter version of Form 990 for organizations with gross receipts between $50,000 to $200,000 and total assets less than $500,000.
- It requires more detailed financial and operational information, including income/expense breakdowns and schedules.
Key Differences of Form 990-N vs Form 990-EZ
Let's see the difference between of Form 990-N vs Form 990-EZ
| Features | Form 990-N | Form 990-EZ |
|---|
| Filing requirements | Gross receipts ≤ $50,000 | Gross receipts $50,000 - $200,000;
Total assets < $500,000 |
| Filing method | It is filed only through electronic method
(e-postcard) | It is also filed electronically |
| Information required | Basic information like EIN, tax year, legal name, etc. | Along with basic information, detailed financial statements, program details, compensation, etc. |
| Schedules | Form 990-N does not require any schedule | Form 990-EZ has 8 schedules - Schedule (A, B, C, E, G, L, N, O)
|
| Extension | No extension for this
Form 990-N. | It has six-month extension of Form 8868 |
| Penalties | No penalties, but loss of tax-exempt status after 3 years of non-filing. | $25/day, and max $12,500 or 5% of gross receipts. |
| Voluntarily Filing Option | No (cannot file if eligible for Form 990-EZ) | Yes (Form 990-N filers can choose Form 990-EZ voluntarily) |
| Best for | Very small nonprofit | Small to mid-sized nonprofits |
Due Date
Both Form 990-N and Form 990-EZ are due by the 15th day of the 5th month after the end of the organization’s fiscal year. For the organizations with a calendar year-end of December 31, the due date for the 2024 tax year is May 15, 2025.
Note: If the deadline falls on the federal holiday or weekend, it is extended to the next business day.
Common Scenarios
1. My nonprofit’s annual income is $40,000. Which form should I file?
If your organization’s gross receipts are $50,000 or less,you should file Form 990-N (e-Postcard). It’s quick and only requires basic information like your EIN, tax year, and principal officer details
2. Our receipts are $45,000, but we want to provide more financial details. Can we file 990-EZ?
Yes, even if you qualify for Form 990-N, you may voluntarily choose to file Form 990-EZ for more detailed reporting.
3. Our nonprofit made $120,000 last year and has $300,000 in assets. What do we file?
You must file Form 990-EZ. It’s for organizations with gross receipts of $50,000 but less than $200,000 and assets less than $500,000.
4. We have $100,000 in receipts but $600,000 in assets. Are we eligible for 990-EZ?
No. If your assets are $500,000 or more, you must file the full Form 990instead of 990-EZ.
5. Can we file both forms for the same year?
No. You must choose one form that fits your organization’s situation for each tax year.
6. We just started our nonprofit this year. Do we need to file?
Yes, most new nonprofits must file a federal return for their first (even partial) tax year. The form required depends on their gross receipts for that period.
