You Make the Call - April 9, 2026

Question: Olivia Moroni is the new treasurer of a nonprofit organization recognized as tax-exempt under §501(c)(3). The organization has been in existence since 2020. She is preparing for the annual IRS filing requirement and wants to understand which Form 990, Return of Organization Exempt from Income Tax, series return the organization must file based on its financial activity. How should she determine the correct form?

Answer: Olivia should begin by reviewing the organization’s gross receipts for the tax year and its total assets at year-end, as these thresholds determine the appropriate Form 990 series filing. Gross receipts means the total amounts the organization received from all sources during its annual tax year without subtracting any costs or expenses. If the organization normally has gross receipts of $50,000 or less, it may file Form 990-N, also known as the e-Postcard. Olivia should determine whether the organization normally has gross receipts of $50,000 or less by applying the IRS averaging rules. Since the organization has been in existence for three years or more, use average gross receipts over the prior three-year period. If gross receipts are less than $200,000 and total assets are less than $500,000, the organization may file Form 990-EZ, Short Form Return of Organization Exempt from Income Tax. If either gross receipts are $200,000 or more, or total assets are $500,000 or more, the organization must file the full Form 990. All Forms 990 must be electronically filed, and failure to file the required return for three consecutive years results in automatic revocation of tax-exempt status. Returns are due by the 15th day of the fifth month (May 15, 2026) for calendar year filers.