Form 990 Preparation -


Trust the 501(c)(3) Experts to Help

You know that The Foundation Group is the nation's leading provider of 501(c)(3) startup services.  But did you know that we also provide on-going compliance services, including the preparation of Form 990?

Our expertise in preparing Form 990 goes all the way back to our founding in 1995.  In fact, in those early days, compliance services made up the bulk of our work.  It's who we are!

Things have changed a lot since then...especially the Form 990.  Last year brought the most comprehensive overhaul to Form 990 since 1979.  The IRS has greatly increased both the length and complexity of the return, keying in heavily on the areas of compliance, governance, structure, procedures and activities.  Conflict of interest is a constant theme.  In fact, the new Form 990 resembles the Form 1023 like never before.

Read our blog post concerning the important changes to Form 990!

Make no mistake...now more than ever, Form 990 requires a professional who understands 501(c)(3) issues.  Call us today!
Form 990 Preparation Services
Led by our team of CPAs and IRS Enrolled Agents, our compliance department can assist you with your mandatory annual reporting requirements. We prepare both current and prior year filings.

Not sure which Form 990 you should file?
Use our Form 990 Calculator to find out!
Form 990 FAQs


What is it?

Form 990 is the IRS Return of Organization Exempt from Income Tax.  It is the 501(c)(3) equivalent of a corporate tax return...there's just no tax to be paid.

Who must file it?

Most 501(c)(3) organizations must file some version of Form 990 with the IRS every year*.  Prior to 2007, organizations that normally average** less than $25,000 in gross revenue were not required to file.  The chart below shows the filing thresholds (2008):

Form 990-N:  Gross revenue < $25,000
Form 990EZ:  Gross revenue => $25,000, but < $1,000,000
Form 990:  Gross revenue => $1,000,000
Form 990PF:  Required of all private foundations, regardless of revenue.

See here for information on thresholds for other tax years.

*Churches and associations of churches are exempt from filing Form 990.

**Normally averaging less than $25,000 in gross revenue is calculated as follows:
   1.  Organizations up to a year old that have received, or donors have pledged to give, $37,500 or less during its first tax year;
   2.  Between 1 and 3 years old and averaged $30,000 or less in gross receipts during each of its first 2 tax years; or
   3.  3 years old or more and averaged $25,000 or less for the immediately preceding 3 tax years (including year for which return would be filed)
Don't delay...call us today!  We look forward to helping your organization stay in good standing with the IRS.
Greg McRay discusses the new IRS Form 990
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But only for a limited time.
All Form 990/990EZ preparation services includes our exclusive federal compliance assessment!
When must Form 990 be filed?

The due date for filing is the 15th day of the 5th month following the end of the organization's fiscal year.  For a 501(c)(3) with a fiscal year ending December 31, the filing due date is May 15.  Two extensions of up to 90 days each are possible, though the second is not automatic.

What happens if an organization files late or fails to file at all?

Late filing can result in substantial penalties that could cost your organization thousands of dollars.  The IRS assesses a penalty of $20 per day, up to the lesser of $10,000 or 5% of that year's gross revenue...plus interest.  But, even if your organization is facing a penalty, file as soon as possible to minimize the damage.  It adds up quickly and can be devastating to a charity.

If a 501(c)(3) organization fails to file Form 990 for 3 consecutive years, the IRS will revoke that organization's tax exempt status.

Just how difficult is the return...and can we do it ourselves?

Prior to the 2008 overhaul, Form 990 was rather formidable.  Now, some organizations may find their filing requirement has grown 5-fold.  See our blog article concerning the changes, or go to www.irs.gov/charities and download a copy for yourself. 

Unless you have substantial experience in nonprofit compliance, don't try this at home!

What about our local CPA?

We have enormous respect for CPAs.  Our co-founders are both tax professionals: Blair Dudley is a CPA and Greg McRay is an EA (IRS-licensed Enrolled Agent).  But most tax professionals limit their core competency to personal and/or corporate accounting and tax compliance.  Few have substantial experience working with nonprofit organizations.  This lack of specific experience was a handicap even with the old version of Form 990.  Now, the changes to Form 990 render the services of most traditional tax practitioners lacking.

Why?  It goes back to core competency and the specific changes to Form 990.  You don't hire a dentist to perform back surgery.  The dentist is a competent, trained professional...in dentistry.  The same is true for nonprofit compliance.  With the ever-increasing IRS scrutiny of 501(c)(3) organizations, you simply must have a professional who understands the issues at hand and who can work with and advise your organization properly.

The overhaul of Form 990 is substantial.  Now, most of the return deals with compliance issues, governance, structure, procedures and activities...tax law issues that do not have parallels in the personal or for-profit business tax world.  The true parallel is now with the original 501(c)(3) application process (Form 1023).  The issues that most concern the IRS during the 501(c)(3) approval process are now at the heart of the new Form 990.

Why choose The Foundation Group?

IRS nonprofit compliance has always been our business.  Nobody is better prepared to help your organization navigate the filing of Form 990.  Our team members have the expertise necessary to insure that your return is properly prepared and that your organization is operating in compliance and in accordance with best practices.
Form 990
Form 990-EZ
Form 990-PF
Form 990-N
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