Definition & Meaning
Schedule I (Form 990 or 990-EZ) is a supplemental form used by tax-exempt organizations to provide additional information about their financial distributions and grant activities. It supports transparency and accountability by detailing grants made by the organization to other entities. The form ensures compliance with IRS requirements by identifying recipients, amounts given, and purposes of grants. Typically, organizations that file Form 990 or 990-EZ and engage in grantmaking use Schedule I to disclose specific financial transactions and grant-related information.
How to Use the Schedule I (Form 990 or 990-EZ) 2018
To use Schedule I effectively, an organization should begin by gathering comprehensive details about all grant transactions conducted within the fiscal year. This includes details of each grantee, amounts granted, and the purpose of the funds. Once collected, the organization should complete the form by entering precise information into each relevant section. Additionally, it is important to review the completed form to ensure that all reported activities align with IRS requirements and the organization’s mission.
Key Sections of the Form
- General Information: Covers basic details about the filing organization, including its name, EIN, and fiscal year.
- Grantee Information: Requires specifics about each grant recipient, such as name, address, and EIN.
- Amounts and Allocations: Details the financial amounts disbursed to each grantee and the purpose of the funds.
How to Obtain the Schedule I (Form 990 or 990-EZ) 2018
The form can be obtained from the IRS website, where it is available for download in a PDF format. Alternatively, tax preparation software often includes Schedule I, Streamlining the filling process by auto-populating data from other sections when available. To request a paper version, organizations may contact the IRS directly for mailing options. Professionals or consultants specializing in nonprofit taxation can also provide access to these forms as part of their service offerings.
Steps to Complete the Schedule I (Form 990 or 990-EZ) 2018
- Assemble Required Information: Gather all transactional records, including grant details, recipient information, and amounts.
- Fill in the Basic Information: Start with general information about the organization, ensuring all identification numbers match previous filings.
- Document Grantee Details: Complete sections outlining grantee names, addresses, EINs, and issue dates.
- Report Funds and Purposes: Specify the total amounts granted and the purposes for each transaction, substantiating how funds align with organizational goals.
- Review for Accuracy: Carefully check the entries for potential errors and internal inconsistencies before submission.
Who Typically Uses the Schedule I (Form 990 or 990-EZ) 2018
Primarily, tax-exempt organizations engaged in grantmaking activities or that distribute funds to other entities are required to file Schedule I. This includes public charities, private foundations, educational institutions, and other nonprofit entities that support external initiatives financially. By filing Schedule I, these organizations demonstrate their commitment to transparency and compliance with federal regulations governing tax-exempt status.
Important Terms Related to the Schedule I (Form 990 or 990-EZ) 2018
Key Terminology
- Grantee: An individual or organization receiving funds from a grantor.
- Grantor: The organization awarding the grant.
- EIN: Employer Identification Number, a unique number assigned for tax purposes.
- Fiscal Year: The 12-month period used for accounting purposes by an organization.
Filing Deadlines and Important Dates
Schedule I should be filed as part of the annual Form 990 or 990-EZ, due on the 15th day of the fifth month after the organization’s fiscal year ends. If the fiscal year aligns with the calendar year, the deadline generally falls on May 15. Organizations expecting delays must file for an extension using Form 8868, granting an additional six months for submission. Timely filing is critical to avoid penalties and to ensure tax-exempt status is maintained.
Penalties for Non-Compliance
Failure to file Schedule I when required, or filing it incorrectly, can result in significant penalties, including financial sanctions and potential revocation of tax-exempt status. Penalties typically depend on the size of the organization and the length of delay. The IRS may impose daily fines until the errors are corrected, highlighting the importance of accurate and timely form completion. Engaging with tax professionals may help mitigate risks associated with non-compliance.
IRS Guidelines
The IRS guidelines for Schedule I emphasize completeness and accuracy in reporting all grants and similar distributions. Organizations are instructed to provide detailed breakdowns of each transaction, clarify fund usage, and align the organization's actions with its mission. The IRS offers compatible fields for electronic filing that facilitate simpler input and verification processes, enhancing the efficiency for organizations using digital tools to prepare the forms.
