Non Profit Taxes

Non-profits are some of the hardest working and rewarding organizations in our country.

While many of these organizations may enjoy tax-exempt status and believe that it absolves them of all oversight, most non-profit tax-exempt organizations are required to file annual tax returns with the IRS.

Does A Non-Profit Get Taxed?

Even though most tax-exempt non-profit organizations do not pay federal taxes most do have to file an informational return with the IRS. This annual reporting return is called a Form 990. This form allows the IRS and the general public to evaluate a non-profit’s operations; it includes information on the non-profit’s mission, programs, and finances.

Not all non-profits have to file annual returns.
Generally, the following do not have to file Form 990:

  • Most faith-based organizations, religious schools, missions or missionary organizations
  • Subsidiaries of other non-profits – those that may be covered under a group return filed by the parent organization
  • Many government corporations
  • State institutions that provide essential services

How Should A Non-Profit File?

Most federally tax-exempt organizations (with state institutions and religious organizations excepted) file a 990 Form.

The IRS provides information to help you determine which form to file

  • Larger non-profits with gross receipts of more than $50,000 file Form 990 or 990-EZ
  • Smaller non-profits with gross receipts of less than $50,000 file Form 990-N (e-Postcard)
  • Private foundations file Form 990-PF

Insogna CPA is happy to help your organization file your annual non-profit tax return. Your organization does enough hard work running day-to-day operations; let us help make taxes easier for you.