Form 990 Basics

Most tax-exempt organizations must file an information return, Form 990, annually. This filing provides the IRS, state regulators, and the public with detailed information about the organization’s mission, programs, governance, and finances. (Certain smaller organizations may file a Form 990-EZ or Form 990-N, while private foundations file the Form 990-PF.)

The IRS uses Form 990 to monitor ongoing qualification for tax-exempt status, assess compliance risk, and select entities for examination. Because Form 990 is publicly disclosable, it also serves as a transparency tool for watchdogs, the media, and donors to evaluate an organization’s activities, governance, and financial stewardship.

Witnesses at a February 10 House Ways & Means Committee hearing discussed modernizing the form to require more detailed disclosures on foreign money, fiscal sponsorships, and donor-advised funds (DAFs).

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