A business 990 is a tax form that all tax-exempt organizations, including businesses, must file with the Internal Revenue Service (IRS) annually. The form provides the IRS with information about the organization’s finances, activities, and governance. This information is important for the IRS to verify that the organization is meeting its tax-exempt requirements and to ensure that it is not engaging in any prohibited activities.
The business 990 is a comprehensive form that covers a wide range of topics. Some of the key information that is reported on the form includes:
- Revenue and expenses
- Assets and liabilities
- Compensation of officers and directors
- Program expenses
- Fundraising expenses
- Unrelated business income
- Lobbying activities
- Political activities
The business 990 is also used to report on the organization’s governance structure. This includes information about the board of directors, committees, and the organization’s policies and procedures.
The business 990 is an important tool for transparency and accountability. By providing the public with access to this information, the IRS helps to ensure that tax-exempt organizations are operating in a responsible and ethical manner.
Here are some of the benefits of filing a business 990:
- It helps to ensure that your organization is complying with IRS regulations.
- It provides transparency to your donors and stakeholders.
- It can help you to attract new donors and volunteers.
- It can help you to improve your governance and management practices.
- It can help you to identify areas for improvement in your organization.
If you are a tax-exempt organization, it is important to file your business 990 on time and accurately. The IRS has a variety of resources available to help you complete the form, including the instructions that come with the form and the IRS website.
I hope this article has been helpful. Please let me know if you have any other questions.
