Form 990-EZ: the short form for mid-size organizations

The 990-EZ sits between the e-Postcard and the full Form 990. It suits an organization that has outgrown the 990-N but is still small: a youth league, a local foundation, a growing community group. It is four pages long, but it asks real questions about money, people and compliance, and the public can read it.

Who can file the 990-EZ

An organization may file Form 990-EZ for a year if both are true:

• its gross receipts for the year are less than $200,000, and
• its total assets at the end of the year are less than $500,000.

Gross receipts are everything the organization received during the year from all sources, without subtracting costs or expenses. Total assets are the year-end figure on the balance sheet (Part II, line 25), without subtracting what the organization owes. If either number is at or above the limit, the full Form 990 is required. An eligible organization may always choose to file the full 990 instead.

On the 990-EZ itself, gross receipts are found by adding back the costs that Part I nets out: line 9 (total revenue) plus line 5b (cost of assets sold), line 6c (fundraising event and gaming expenses) and line 7b (cost of goods sold). See our guide to gross receipts.

Who can't use it

• Private foundations, which file the 990-PF
• Sponsoring organizations of donor-advised funds, which must file the full 990
• Organizations that operate a hospital facility and section 501(c)(29) qualified nonprofit health insurance issuers
• Controlling organizations under section 512(b)(13) that had a transfer of funds with a controlled entity during the year
• Section 501(c)(21) black lung trusts (unless eligible for the 990-N)
• Group returns, which must be filed on the full 990

What it asks, part by part

Part I: revenue and expenses

Revenue is reported by type: contributions and grants (line 1), program service revenue (line 2), membership dues (line 3), investment income (line 4), sales of assets (lines 5a to 5c), fundraising events and gaming (lines 6a to 6d), sales of inventory (lines 7a to 7c) and other revenue (line 8). Expenses are grouped into a handful of lines, including grants paid (line 10), salaries and benefits (line 12), professional fees (line 13), occupancy (line 14) and other expenses (line 16). Net assets at the start of the year, plus the year's surplus or deficit and any other changes, should equal net assets at year end (line 21).

Part II: balance sheet

Beginning and end-of-year figures for cash, savings and investments (line 22), land and buildings (line 23), other assets (line 24), total assets (line 25), total liabilities (line 26) and net assets (line 27). Line 25, column (B), is the number used for the $500,000 test.

Part III: program accomplishments

Your primary exempt purpose, then up to three programs described in plain language with their expenses (lines 28 to 30), and a total of program service expenses (line 32). It is the part donors read, so name what you did and for whom.

Part IV: officers, directors and key employees

Every officer, director, trustee and key employee, even unpaid volunteers, with average weekly hours, compensation, benefits and expense account allowances.

Part V: other information

Yes/no questions with real consequences: changes in activities or governing documents not yet reported to the IRS (lines 33 and 34), unrelated business gross income of $1,000 or more (line 35a), liquidation or significant disposition of assets (line 36), and questions on loans to officers, political expenditures and prohibited tax shelter transactions.

Part VI: section 501(c)(3) organizations only

Lobbying (line 47), whether the organization is a school (line 48), and the five highest-paid employees and five highest-paid independent contractors earning more than $100,000 (lines 50 and 51). Line 46 asks about political campaign activity, which a 501(c)(3) is prohibited from conducting.

Schedules that often come with it

• Schedule A for every 501(c)(3) organization: public charity status and the public support test
• Schedule B if any contributor gave $5,000 or more, or, for 501(c)(3)s that meet the 33⅓% support test, more than the greater of $5,000 or 2% of the contributions on line 1. See Schedule B.
• Schedule O for explanations and any answer that needs more room
• Schedule C for political campaign or lobbying activities, Schedule E for schools, Schedule G for larger fundraising events and gaming, Schedule L for certain insider transactions, and Schedule N for a liquidation or significant disposition

Our schedules guide explains each one.

Filing it

The 990-EZ must be e-filed; the IRS has required electronic filing for tax years ending July 31, 2021 and later. It is due on the 15th day of the 5th month after year end (May 15 for a calendar year), and Form 8868 extends that by six months. Late returns face the same daily penalties as the full 990: for returns required to be filed in 2026, $25 a day up to the lesser of $13,000 or 5% of gross receipts. See late-filing penalties.

Common mistakes

• Using net figures for the $200,000 test. Add back cost of goods sold, event expenses and the cost of assets sold.
• Ignoring the year-end asset test, especially after a large gift or property donation late in the year.
• Leaving unpaid board members out of Part IV.
• Skipping Schedule A. Every 501(c)(3) filing a 990-EZ attaches it, and a missing schedule makes the return incomplete.
• Answering "no" to the unrelated business question without checking advertising, rentals or sales to the public.

990IRS.com is a private company, not the IRS. This page is general information, not legal or tax advice for your organization. Example organizations and figures are hypothetical.