IRS Releases Updated Form 990-EZ

form-990-ez-topAs 501(c)3 organizations, PTAs are required to file some type of Form 990 with the Internal Revenue Service (IRS) every year. That form is due on the 15th day of the fifth month after the end of their fiscal year. For PTAs whose fiscal year ends June 30th, the filing deadline is November 15th.

PTAs that have gross receipts (i.e., total income) that are normally less than $50,000 file the online electronic postcard Form 990-N. Those PTAs with gross receipts between $50,000 and $200,000 use the Form 990-EZ. The IRS has issued an updated version of Form 990-EZ to help non-profit organizations file the form correctly. PTAs will use the new form for fiscal years that end after September 30, 2016 (i.e., with a due date of February 15, 2017 or later).

After analyzing where organizations were making mistakes on the Form 990-EZ, the IRS added 29 new “help” icons in specific fields to describe the key information needed and to provide links to additional helpful resources on the IRS website. The new form’s help icons are small blue boxes marked with a question mark (see picture). The icons and links work on any device with Adobe Acrobat Reader and internet access.

The IRS is encouraging non-profit organizations that file the Form 990-EZ to fill it out electronically rather than on paper. In 2016, the error rate for electronically-filed Form 990-EZ returns was 1 percent, while the paper-filed error rate was 33 percent. Once completed, the online Form 990-EZ can be printed out and mailed to the IRS.

The IRS does caution that the new help icons do not replace the Form 990-EZ instructions, but only serve as an aid in filling out the form. PTAs should follow the Form 990-EZ instructions when completing their return.