Form 990 instructions for Nonprofits & Tax-Exempt Organizations

What is IRS Form 990?

IRS Form 990 is an annual information return filed by Tax-exempt organizations, nonexempt charitable trusts, and section 527 

political organizations to provide the required information by section 6033.

Deadline for filing Form 990

Organizations that follow the fiscal tax year must file Form 990 by the 15th day of the 5th month after the organization's accounting period 

ends. For organizations that follow the calendar tax year, the 990 return is due by May 15.

If the due date falls on a Saturday, Sunday, or legal holiday, file the form on the next business day.

Use the Form 990 Due Date Calculator to find your deadline.

Instructions on how to Fill Out Form 990

Completing Form 990 can be a long and tedious process. It’s necessary to have your organization’s basic information and the required 

documentation handy.

We have provided a basic guideline and helps in completing the filing process of your Form 990

• Enter the name of your Organization, EIN, address, and telephone number.

• Check the appropriate field on Box B for any Address change, Name change, Initial return (if the organization is filing Form 990 for the 

  first time), final return/terminated, Amended return, or Application pending.

• Check your appropriate section (501(c)(3), 501(c), 4947(a)(1) or 527) for tax-exempt status.

• Check the type of organization (Corporation, Trust, Association, Other), and the year of formation.

• Enter the group exemption number.

Once you have provided the basic information, you must complete the required parts of Form 990.

Part by part instructions of Form 990

1. Summary

Form 990 Instructions, Part I consists of 22 lines and is categorized into 4 sections. 

Activities and Governance

Enter the following details in line 1 - 7 (Activities and Governance) of Form 990

• Organization’s mission or most significant activities

• Number of voting members & independent voting members of the governing body

• Total number of individuals employed in the calendar year 2020

• Total number of volunteers

• Total unrelated business revenue & unrelated business taxable income from Form 990-T

Revenue

Enter the following details for the prior year & current year in line 8 - 12 (Revenue) of Form 990

• Contributions and grants

• Program service revenue

• Investment income

• Other revenue

Expenses

Enter the following details for the prior year & current year in line 13 - 19 (Expenses) of Form 990

• Grants and similar amounts paid

• Benefits paid to or for members

• Fundraising fees

• Other expenses

Net Assets or Fund Balances

Enter the following details for the beginning of the year & end of the year in line 20 - 22 (Net Assets or Fund Balances) of Form 990

• Total assets

• Total liabilities

• Finally, the “Net assets or fund balances” of your Organization is shown at the end of Part I of Form 990.

2. Signature Block

The current president, vice president, treasurer, assistant treasurer, chief accounting officer, or other corporate officers (such as a tax officer) 

is responsible for signing the IRS Form 990 as of the filing date. A receiver, trustee, or assignee must sign any return he or she files for a 

corporation or association.

Paid Preparer  is the person who prepares the 990 return, signs the return, list the preparer's taxpayer identification number (PTIN), 

and fill in the other details like Firm's Name, address, EIN.

3. Statement of Program Service Accomplishments

An Organization is required to report its program service accomplishments with the IRS. Enter the descriptive of the Organization's mission. 

If your organization undertook any significant program, choose yes on this part and explain in detail on Schedule O.

Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and their allocations to others, the total expenses, 

and revenue, if any, for each program service being reported.

4. Checklist of Required Schedules

The Organization must complete and attach the applicable schedule for each "Yes" as the answer to a question on Form 990, 

Part IV,  Checklist of Required Schedules.

For example, if the Organization selected "Yes" for being described under section 501(c)(3) or 4947(a)(1) (other than a private foundation), 

it must complete Schedule A.

Currently, Form 990 supports 16 schedules and your organization must complete the required schedules based on the answer it provides 

in Part IV.

5. Statements Regarding Other IRS Filings and Tax Compliance

Part V requires information on the amounts entered for the various activities on the IRS Forms 1096, W-2G, W-3, 990-T, 8886-T, 8282, 4720.

If the Organization received any funds, directly or indirectly, to pay premiums on a personal benefit contract, pay premiums, directly or 

indirectly, on a personal benefit contract, qualified intellectual property, enter the values of it. Also enter the values of of gross income 

from members, shareholders, or other sources.

6. Governance, Management, and Disclosure

Part VI consists of 3 sections

Section A - Governing Body and Management

The organization must provide the details of voting members, members or stockholders, and about governing body members in this section.

Section B - Policies

This section collects information about policies not required by the Internal Revenue Code

Enter the details of Organization such as

• Whether the organization have local chapters, branches, or affiliates

• If the organization provided a complete copy of Form 990 to all members of its governing body before filing the form

Section C - Disclosure

In this section, list the states which require a copy of this Form 990 to be filed, even if the organization is yet to file Form 990 with that state. 

Also provide information on the organization’s books and records.

7. Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors

Part VII consists of 2 sections to complete

Section A - Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees

Organizations must complete Part VII, Section A for the officers, directors, trustees, and employees of the organization whose reportable 

compensation from the organization and related organizations

Enter their name, average hours per week, position, Reportable compensation from the organization and related organization reported on 

W-2/1099-MISC, estimated amount of other compensation from the organization and related organizations.

Section B - Independent Contractors

Complete the section for your five highest compensated independent contractors who received more than $100,000. Also enter the total 

number of independent contractors who received more than $100,000 (other than the previously listed contractors) of compensation from 

the organization.

8. Statement of Revenue

Part VIII requires information about the various revenues and contributions of your organization. This part consists of four sections

• Contributions, Gifts, Grants and Other Similar Amounts

• Program Service Revenue

• Other Revenue

• Miscellaneous Revenue

The organization must provide the required information on the expenses made in each section of Part VIII of Form 990.

9. Statement of Functional Expenses

As similar to the previous part, Part IX requires information about the various expenses made your organization. 

Enter the values of total expenses, Program service expenses, Management and general expenses, Fundraising expenses for the grants & other 

assistance, Benefits paid to or for members, Other employee benefits, Payroll taxes, Fees for services, travel, occupancy, interest, royalties, 

occupancy, advertising & promotion, and more.

Section 501(c)(3) and 501(c)(4) organizations must complete all columns of Part IX whereas All other organizations must complete only 

column (A) of Part IX.

10. Balance Sheet

Part X of form 990 depicts the financial position of Nonprofits at a specific point in time, eventually at the close of an accounting period. 

It displays the organization's financial health or net worth at a given time. The balance sheet of a nonprofit organization includes three 

main sections:

1. Assets

2. Liabilities

3. Fund balance

The Organization must provide the details related to the above sections for the beginning to the end of the year.

11. Reconciliation of Net Assets

This part in Form 990 is used to review whether the net asset balance per the financial statements matches the net asset balance per the IRS 

Form 990.

In this part, enter the total revenue, expenses, net assets, or fund balances at the beginning of the year, gains, investment expenses, 

net assets, or fund balances to reconcile the Net Assets.

12. Financial Statements and Reporting

Part XII is regarding the financial statements and reporting used in Form 990.

In this part, the organization must enter the accounting method used to prepare the Form 990 and also mention whether the organization’s 

financial statements compiled, reviewed, or audited by an independent accountant.

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