Form 990 of the IRS is also titled the Return of Organization Exempt from Income Tax, and it is a compulsory submission for all organisations falling into the described bracket (those that are federally tax-exempt). The Form 990 provides the government with information on the organisations goals, activities, budget, and the like. Before you go and fill out a Form 990 for your organisation, however, you may need to take note that certain organisations are not required to fill out the form. According to the IRS, at least 15 exceptions exist, and they have been provided below.
1. Churches and interchurch organisations
2. Any integrated church auxiliary
3. Organisations that happen to be affiliated with churches and that are also dedicated solely to the management of funds or to handling programmes for retirement
4. Any educational institution dedicated to learning (or school) that operates below the collegiate level and which is affiliated again with a religious order or church
5. Mission groups affiliated with the church for which majority of the programmes and activities are for persons in countries outside of the US
6. Exclusively religious activities of spiritual orders
7. State institutions whose incomes are excluded from gross income following certain stipulations (these may be found in section 115)
8. All corporations that have been organised through an Act of Congress and which are instrumentalities of the US, and which also happen to be exempt from federal income tax as described by the lines in section 501 (c) (1)
9. Certain trusts, stock bonuses, and pensions that are qualified under section 401
10. Some religious organisations as described by section 501(d)
11. Some government units and their affiliates, whose prerequisite traits are described in Revenue Procedure 95-48, 1995-2 C. B. 418
12. Particular private foundations as described in section 501
13. State or local political committees
14. Exempt non-private organisations that regularly post annual gross receipts of $50,000 or less (because these qualify for Form 990-N instead)
15. Foreign organisations located in US territories that regularly post gross receipts of $50,000 or less per year (again due to the qualification for Form 990-N)
Besides these, it is also possible to request an exemption from the obligation to file Form 990. To do this, you should provide the IRS with the information requested by Forms 1023 or 1024. You must request a determination and wait for the IRS to make a ruling on your case.
Author recommends professional auditor file late tax for filing your 2010 taxes.
