Tax Filing Requirement Changes.jpg

Federal and PA Tax Exempt Filing Requirements | Form 990 series and BCO-10

Posted by Patrick M. Rossiter on Nov 7, 2017 1:08:00 PM

Edited on 1/26/19

Despite tax-exemption, nonprofit organizations are still subject to reporting requirements with taxing authorities, namely the Internal Revenue Service and various state revenue departments. For the Boards and Executive Directors of nonprofits, this means it's important to have a clear understanding of their organization and where it falls within filing requirements. 

Below are summaries of the different Federal and Pennsylvania requirements for non-profit organizations.

The requirements outlined below are limited, organizations should consult a certified public accountant to determine reporting requirements for their specific situation.

Federal Requirements:

Federal Filing requirements for nonprofit organizations differ depending on the amount of gross receipts of the nonprofits, except for nonprofits that don't meet public support tests under IRS code Section 509(a)(1).

Click on the category your nonprofit falls under to find out which form you should file.  

Form 990-N

In 2008 the IRS created a new tax document for small nonprofits. Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ also known as Form 990-N, was established as an attempt to keep tabs on small nonprofits. Prior to this form, the government had no way of knowing whether nonprofits with gross receipts less than $25,000 were still operating, had changed their address, etc.

Who files it:

Organizations with annual gross receipts under $50,000 are required to file 990-N online. Also, nonprofits with average gross receipts of $50,000 or less for the past three years should file 990-N.

Filing Form 990-N:

  • Due Date: The form is due annually by the end of the 15th day of the 5th month after the close of an organization's tax year. For instance, if the tax year-end is December 31, the filing deadline on May 15, of the following year. 
  • Determining your tax year: The following documents contain your tax year or accounting period (calendar tax year vs. fiscal tax year).
    • The organization's by-laws.
    • The tax-exempt status application or approval letter.
    • The application to receive the Employer Identification Number (EIN).
    • Prior year returns (Form 990-N, 990, 990-EZ, etc.)
  • How to file: Follow the IRS's Form 990-N Electronic Filing System (e-Postcard) User Guide for detailed instructions.
  • Late filing: There is no penalty for filing late, however, the IRS may send them a reminder. To file a prior year return after the start of the next tax year, organizations are required to file via an IRS approved e-file service provider.
  • Failure to file: If an organization doesn't file their e-Postcard three years in a row, they will lose their tax-exempt status. Failure to file for 1 or 2 years will not result in a penalty.  

Form 990-EZ

Form 990-EZ is a shortened version of Form 990.  

Who files it:

Organizations with average annual gross receipts less than $200,000 and total assets less than $500,000 may file either Form 990-EZ.  These organizations may also choose to file the full form 990.

Filing Form 990-EZ:

  • Due Date: The form is due annually by the end of the 15th day of the 5th month after the close of an organization's tax year.  For instance, if the tax year-end is December 31st, the filing deadline on May 15, of the following year. 
  • Determining your tax year: The following documents contain your tax year or accounting period (calendar tax year vs. fiscal tax year).
    • The organization's by-laws.
    • The tax-exempt status application or approval letter.
    • The application to receive the Employee Identification Number (EIN).
    • Prior year returns (Form 990-N, 990, 990-EZ, etc.)
  • How to file: Despite being a shortened version of Form 990, Form 990-EZ is still quite complicated. Complete instructions can be found here however, organizations should consult with certified public accountant for assistance.
  • Late filing: A fee of $20 a day with a maximum of $10,000 for organization's with gross receipts less than $1,000,000.  For organizations with gross receipts exceeding $1,000,000 the max is $50,000. Click here for information regarding late fee abatement.
  • Failure to file:If an organization doesn't file their Form 990-EZ three years in a row, they will lose their tax-exempt status

IRS Filing Tips for Form 990-EZ

Form 990

Who files it: 

All organizations with $200,000 or more annual gross receipts or total assets over $500,000.  However, any organization that qualifies to file form 990-EZ may also choose to file form 990.

Filing Form 990:

  • Due Date: The form is due annually by the end of the 15th day of the 5th month after the close of an organization's tax year.  For instance, if the tax year-end is December 31st, the filing deadline on May 15, of the following year. 
  • Determining your tax year: The following documents contain your tax year or accounting period (calendar tax year vs. fiscal tax year).
    • The organization's by-laws.
    • The tax-exempt status application or approval letter.
    • The application to receive the Employee Identification Number (EIN).
    • Prior year returns (Form 990-N, 990, 990-EZ, etc.)
  • How to file: Form 990 is quite complicated. Complete instructions can be found here however, organizations should consult with certified public accountant for assistance.
  • Late filing: A fee of $20 a day with a maximum of $10,000 for organization's with gross receipts less than $1,000,000.  For organizations with gross receipts exceeding $1,000,000 the max is $50,000. Click here for information regarding late fee abatement.
  • Failure to file: If an organization doesn't file their Form 990 three years in a row, they will lose their tax-exempt status

Form 990-PF

Who files it:

All exempt and taxable private foundations and 4947(a)(1) nonexempt charitable trusts, regardless of asset size, must file 990-PF.

Filing Form 990-PF:

  • Due Date: The form is due annually by the end of the 15th day of the 5th month after the close of an organization's tax year.  For instance, if the tax year-end is December 31st, the filing deadline on May 15, of the following year.
  • Determining your tax year: The following documents contain your tax year or accounting period (calendar tax year vs. fiscal tax year).
    • The organization's by-laws.
    • The tax-exempt status application or approval letter.
    • The application to receive the Employee Identification Number (EIN).
    • Prior year returns (Form 990-N, 990, 990-EZ, etc.)
  • How to file: Form 990-PF is quite complicated.  Complete instructions can be found here however, organizations should consult with certified public accountant for assistance.
  • Late filing: A fee of $20 a day with a maximum of $10,000 for organization's with gross receipts less than $1,000,000.  For organizations with gross receipts exceeding $1,000,000 the max is $50,000. Click here for information regarding late fee abatement.
  • Failure to file: If an organization doesn't file their Form 990-PF three years in a row, they will lose their tax-exempt status. Failure to file for 1 or 2 years will not result in a penalty.  

Exempt Organizations:

  • Religious organizations such as churches, schools, missionaries, etc.  Click here for the Tax Guide for Churches and Religious Organizations.
  • Subsidiaries of other nonprofits where the parent filed a group return.
  • Organizations that have not claimed tax-exemption.
  • Certain state institutions that provide essential services.
  • Government organizations

IRS Complete List of Organizations Exempt from Filing

 The examples outlined above are limited and may be subject to restrictions.  Organizations should consult a certified public accountant to determine reporting requirements for their specific situation.


Pennsylvania Requirements:

  • All organizations that solicit charitable contributions from Pennsylvania residents are required to file form BCO-10 unless they are exempt or excluded from filing. For more information regarding exempt and excluded organizations click here.
  • Organizations filing form BCO-10 must attach their Federal Form 990, 990-EZ, 990-N, or 990-PF.
  • Organizations that file form 990-EZ, 990-N, or 990-PF, are also required to complete form BCO-23 and attach it to form BCO-10.
  • Pennsylvania also requires organizations to attach financial statements to form BCO-10 according to the following schedule:
Gross Contributions  Type of Financial Statements to Include
Section 163.7(a) Organizations None
$100,000 or less

Internally Prepared, Compiled, Reviewed, or Audited

$100,000 to less than $250,000 Compiled, Reviewed, or Audited
$250,000 to less than $750,000 Reviewed or Audited
Greater than $750,000 Audited

 

INFORMATION FOR CHARITABLE ORGANIZATIONS | Pennsylvania Department of State

Topics: Nonprofit Filing Requirements, PA Nonprofit Filing Requirements, Form 990

Contact Us

Subscribe to Email Updates

Recent Posts