Definition & Meaning
The 2010 990 form is a tax document used by tax-exempt organizations, non-profits, and some governmental entities in the United States to provide the Internal Revenue Service (IRS) with their financial information. It is designed to ensure transparency in financial activities and to maintain the tax-exempt status of these organizations. Completion of this form is an essential component for such organizations to comply with federal regulations and provide a public record of their operations, funds, and activities.
How to Use the 2010 990 Form
Using the 2010 990 form involves several steps to accurately report an organization’s financial status. Organizations must gather comprehensive financial details from the previous fiscal year, including revenue, expenses, assets, and liabilities. The form asks for specific details on the activities performed by the organization, executive compensation, and any significant donations received or given. Organizations also need to ensure that all provided information is truthful and accurate, as discrepancies can lead to audits or penalties.
How to Obtain the 2010 990 Form
The 2010 990 form can be obtained directly from the IRS website, where it is available for download. Non-profits and tax-exempt organizations can also utilize tax software platforms that provide templates for the form, which streamline the process of inputting required financial data. Most tax professionals who specialize in non-profit accounting can provide the form and assist with its completion.
Steps to Complete the 2010 990 Form
- Collect Financial Records: Gather documentation of all income, grants, gifts, donations, and endowments received. Ensure detailed records of expenses and distributions.
- Detail Organizational Activities: Describe the organization’s activities, mission, and any significant programs facilitated during the reporting period.
- Account for Governance: Report on the governance structure, including information on board members and their compensation.
- Report Financials: Accurately fill out sections regarding the balance sheet, statement of revenue and expenses, and any changes in financial conditions.
- Review and Verify: Double-check all entries for accuracy. Rectify any discrepancies before submission.
- Submit the Form: File the completed form with the IRS by the specified deadline. Choose from electronic or mail submission methods.
Key Elements of the 2010 990 Form
- Part I: Summary and Overview: Provides a snapshot of the key financial and operational aspects of the organization.
- Part V: Statements Regarding Other IRS Filings and Tax Compliance: Includes questions about tax filings and compliance status.
- Schedule A: Public Charity Status and Public Support: Essential for organizations to establish their classification as a public charity.
- Schedule G: Supplemental Information Regarding Fundraising or Gaming Activities: Necessary for organizations involved in significant fundraising efforts.
- Schedule O: Supplemental Information for Descriptions and Explanations: Allows for additional details explaining or expanding upon entries in the main form.
IRS Guidelines
The IRS provides specific guidelines detailing how the 990 form should be filled out and the types of organizations required to file it. These guidelines are crucial for ensuring that the information submitted is complete and compliant with federal requirements. They also outline what constitutes proper signature authority within the organization and provide detailed instructions on the necessary documentation to retain post-filing.
Filing Deadlines / Important Dates
The 2010 990 form must typically be filed by the 15th day of the fifth month after the end of the organization's accounting period. For organizations following the calendar year, this deadline falls on May 15. In cases where the filing date lands on a weekend or holiday, the deadline is extended to the next business day. Extensions can be requested, providing an additional six months for submission.
Penalties for Non-Compliance
Non-compliance with 990 form submission can result in significant penalties. Financial penalties accrue daily for each day a form is late, with severe cases leading to loss of tax-exempt status. Additionally, failure to file for three consecutive years results in automatic revocation of the organization's tax-exempt status, requiring reapplication and potential back-payments of taxes.
Digital vs. Paper Version
Organizations can choose between filing a digital or paper version of the 2010 990 form. Digital filing is often more efficient and ensures quicker processing. Many organizations prefer digital filing as it reduces errors with built-in validation checks available in tax software. However, smaller organizations may opt for the paper filing if they lack the infrastructure to support digital submissions.
