Form 990 instructions for exempt organizations, part by part
Form 990 is the IRS form tax-exempt organizations, nonexempt charitable trusts and section 527 political organizations use to file their annual information return. For 2025, an organization with gross receipts of $200,000 or more, or total assets of $500,000 or more, files Form 990 instead of Form 990-EZ.
“Tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations file Form 990 to provide the IRS with the information required by section 6033.” IRS, About Form 990
Which organizations file Form 990, 990-EZ or 990-N?
An organization exempt under section 501(a) files Form 990 when its gross receipts are $200,000 or more or its total assets are $500,000 or more at the end of the tax year, according to the 2025 Instructions for Form 990. Smaller organizations can file Form 990-EZ or submit the Form 990-N e-Postcard.
| Return | Who can use it | Test |
|---|---|---|
| Form 990-N | Organizations whose gross receipts are normally $50,000 or less | 3-year average for organizations at least 3 years old |
| Form 990-EZ | Gross receipts under $200,000 and end-of-year total assets under $500,000 | Current tax year |
| Form 990 | Gross receipts of $200,000 or more, or total assets of $500,000 or more | Current tax year |
| Form 990-PF | Private foundations, whatever their size | Classification |
Some organizations must file Form 990 at any size. The Instructions for Form 990-EZ list sponsoring organizations of donor advised funds, organizations operating a hospital facility, section 501(c)(29) health insurance issuers and certain section 512(b)(13) controlling organizations, and a group return always goes on Form 990. A section 509(a)(3) supporting organization files Form 990 or 990-EZ even when its gross receipts are normally $50,000 or less, with narrow exceptions.
Form 990 is due by the 15th day of the 5th month after year end, May 15 for a calendar-year filer. An organization that doesn't file or submit a notice for 3 consecutive years loses its exemption automatically.
Where does each source document go on Form 990?
Each source document an exempt organization keeps feeds a specific part of Form 990, and Part I is a summary built from the later parts. The 2025 form has twelve parts: the summary and signature in Parts I and II, program accomplishments in Part III, the schedule checklist in Part IV, other filings in Part V, governance in Part VI, compensation in Part VII, revenue, expenses and the balance sheet in Parts VIII to X, and the net asset reconciliation and financial statement questions in Parts XI and XII.
| Source document | What it supports | Form 990 line |
|---|---|---|
| Donor receipts and pledge records | Contributions and grants | Part VIII, 1a to 1h; Schedule B |
| Form W-2 box 5, Form 1099-NEC box 1 | Reportable compensation of officers and key employees | Part VII, Section A, column (D) |
| Form W-3 | Number of employees | Part V, 2a |
| Form 1096, box 3 | Number of information returns filed | Part V, 1a |
| Form 990-T | Net unrelated business taxable income | Part I, 7b |
| Grant payment records | Grants to organizations and individuals | Part IX, 1 to 3 |
| Audited or reviewed financial statements | Balance sheet and net assets | Part X; Part XI; Part XII, 2a and 2b |
Part VII uses reportable compensation from box 5 of Form W-2, box 6 of Form 1099-MISC and box 1 of Form 1099-NEC, per the Part VII instructions printed on the form. Part VIII, column (A) has to equal the sum of columns (B) to (D) plus the contributions on line 1h.
Which schedules does Form 990 Part IV require?
Form 990 Part IV is the checklist of required schedules, and each "Yes" answer points to a schedule that has to be attached. Every Form 990 filer completes Schedule O, which line 38 confirms. The answers depend on this year's activity and balances, so the checklist is answered from the current books rather than copied from last year's return.
| Part IV line | Trigger | Schedule |
|---|---|---|
| 1 | Section 501(c)(3) or 4947(a)(1) organization, other than a private foundation | Schedule A |
| 2 | Meets the Schedule B General Rule or a Special Rule | Schedule B |
| 3 to 5 | Political campaign activity, lobbying, or section 6033(e) dues | Schedule C |
| 6 to 12a | Donor advised funds, easements, collections, endowments, certain balance sheet items, audited statements | Schedule D |
| 14b to 16 | Foreign activities over $10,000, or foreign grants over $5,000 | Schedule F |
| 17 to 19 | More than $15,000 of professional fundraising, event income or gaming income | Schedule G |
| 21 and 22 | More than $5,000 of domestic grants to organizations or individuals | Schedule I |
| 23 | "Yes" on Part VII, Section A, line 3, 4 or 5 | Schedule J |
| 25a to 28c | Excess benefit transactions, loans, grants or business deals with interested persons | Schedule L |
| 29 and 30 | More than $25,000 of noncash contributions, or art and conservation gifts | Schedule M |
| 33 to 37 | Disregarded entities, related organizations, controlled entities | Schedule R |
Part IV, line 2 is answered "No" when the organization isn't covered by the General Rule or a Special Rule, and the Instructions for Schedule B treat that answer as the certification that Schedule B isn't required. A school described in section 170(b)(1)(A)(ii) answers line 13 and files Schedule E, and a hospital facility operator answers line 20a and files Schedule H.
What does a Form 990 tie-out look like?
For example, a section 501(c)(3) public charity reports $850,000 of contributions, $120,000 of program service revenue and $15,000 of investment income for 2025, with no costs netted against revenue. Expenses are $930,000, and an $18,000 unrealized investment gain is booked to net assets. Gross receipts are $985,000, so the organization files Form 990 rather than Form 990-EZ.
| Tie-out | Form 990 line | Amount |
|---|---|---|
| Contributions and grants | Part VIII 1h = Part I 8 | $850,000 |
| Total revenue | Part VIII 12 = Part I 12 | $985,000 |
| Total functional expenses | Part IX 25 = Part I 18 | $930,000 |
| Fundraising expenses, column (D) | Part IX 25(D) = Part I 16b | $80,000 |
| Revenue less expenses | Part I 19 = Part XI 3 | $55,000 |
| Beginning net assets | Part XI 4 = Part X 32(A) | $1,200,000 |
| Net unrealized gains | Part XI 5 | $18,000 |
| Ending net assets | Part XI 10 = Part X 32(B) | $1,273,000 |
Program service expenses in Part IX, column (B) are $720,000 and management and general in column (C) are $130,000, so columns (B) to (D) add back to the $930,000 in column (A). If the charity claims the Schedule B Special Rule for organizations meeting the 33 1/3% support test, only contributors who gave more than the greater of $5,000 or 2% of the $850,000 on line 1h, which is $17,000, are listed on Schedule B. Every equality in this table comes from a "must equal" instruction printed on the 2025 Form 990.
What do reviewers check on Form 990?
A reviewer checking Form 990 confirms that Part I agrees with the detailed parts, that net assets reconcile to the balance sheet, and that Part IV picked up every required schedule. The audited or reviewed financial statements and the prior-year Form 990 are the first documents to pull, because Part X, column (A) and Part XI, line 4 both carry forward from last year. The six checks below come from the 2025 form and instructions.
The reviewer also checks that no social security numbers appear anywhere on the return or its schedules, since Form 990 is open to public inspection and, with limited exceptions, neither the organization nor the IRS can remove them. Before signing, the reviewer confirms Part VI, line 11a: whether a complete copy of the Form 990 went to every governing body member before filing, with the review process described on Schedule O under line 11b.
Every line checked against the documents the client sent
Filed reads the organization's financial statements, donor records, payroll forms and prior-year return, then checks every part of Form 990 against them. Anything that doesn't tie comes back as a review item with a citation to the source.
Book a demoPart XI, line 10 shows $1,273,000, but Part X, line 32, column (B) shows $1,255,000. Confirm whether the $18,000 unrealized gain on Part XI, line 5 was recorded in the balance sheet investments.
Common questions
What counts as gross receipts for the Form 990 filing test?
Gross receipts for the Form 990 filing test are the total amounts received from all sources during the tax year, without subtracting costs or expenses. On Form 990, the instructions add Part VIII, lines 6b, 7b, 8b, 9b and 10b back to total revenue on line 12. That is why total revenue can understate gross receipts.
Can a small organization choose to file Form 990 instead of 990-EZ?
A small organization can choose to file Form 990 even when it qualifies for Form 990-EZ or Form 990-N. The 2025 Instructions for Form 990 say an organization that makes this choice must file a complete return, including every schedule Part IV requires, not a partial Form 990.
What happens if an exempt organization stops filing Form 990?
An exempt organization that fails to file a required Form 990, 990-EZ or 990-N for 3 consecutive years automatically loses its tax-exempt status on the due date of the third return. The organization may then need to file income tax returns, and it can apply for reinstatement, per the 2025 Instructions for Form 990.