Who Files Form 990? Thresholds, Exemptions, and Penalties

Any organization that the IRS recognizes as tax-exempt under Section 501(a) generally has to file some version of Form 990 each year, and the question of who files Form 990 also reaches Section 527 political organizations with $25,000 or more in annual gross receipts and nonexempt charitable trusts treated as charitable for tax purposes.¹²³ The obligation exists even when the group owes no federal income tax. Form 990 is an information return, and its purpose is public transparency about how a nonprofit raises and spends money.

Organizations Required to File

The largest group of filers is organizations described under Section 501(c). That covers 501(c)(3) charities and educational institutions, 501(c)(4) social welfare organizations, 501(c)(5) labor and agricultural groups, and dozens of other 501(c) subtypes.⁴ Nonexempt charitable trusts file too, as do Section 527 political organizations once they hit the $25,000 gross-receipts mark.³

Private foundations file too, and their rule is stricter: every private foundation files Form 990-PF every year, regardless of receipts or assets.⁵

Organizations That Do Not Have to File

Federal law excuses several categories from the annual filing requirement.⁶

Churches, conventions or associations of churches, integrated auxiliaries of churches, and the exclusively religious activities of religious orders.
State institutions and entities whose income is excluded from gross income under Section 115, which generally covers income from public utilities or essential governmental functions accruing to a state or political subdivision.⁷
Political committees that already report under the Federal Election Campaign Act, including national party committees, authorized candidate committees, state and local party committees, and caucuses of state or local officials.⁶
Non-private-foundation organizations whose gross receipts are normally $5,000 or less.

An excused organization can still choose to file voluntarily.

Supporting Organizations Do Not Get the Small-Size Break

A Section 509(a)(3) supporting organization has to file Form 990 or 990-EZ every year, even if its gross receipts are normally $50,000 or less. The usual small-organization relief does not reach these entities.⁸ A supporting organization is one organized and operated exclusively for the benefit of one or more specified public charities.

Which Version of Form 990 Applies

Once you know you have to file, the version depends on gross receipts, total assets, and whether you’re a private foundation.⁵

Form 990-N (e-Postcard) is for organizations with gross receipts normally $50,000 or less. It’s an electronic notice with eight basic items, such as legal name and taxpayer identification number.
Form 990-EZ is for organizations with gross receipts under $200,000 and total assets under $500,000. Both thresholds have to be met.
Form 990, the full return, is required at gross receipts of $200,000 or more, or total assets of $500,000 or more. It covers finances, governance, and compensation in detail.
Form 990-PF is required of every private foundation, whatever its financial size.

An organization eligible for 990-N or 990-EZ can file the full 990 instead, and some do so for transparency reasons.

What “Normally” $50,000 or Less Means

The 990-N threshold is not a single-year figure. The IRS uses a rolling test:⁹

In existence one year or less: gross receipts of $75,000 or less (including pledges) during the first tax year.
Between one and three years old: an average of $60,000 or less during the first two tax years.
At least three years old: an average of $50,000 or less over the preceding three tax years.

Gross receipts for this test include all amounts received from every source during the year, before subtracting costs or expenses.

Group Returns

A parent organization with a group exemption letter can file one group return covering itself and two or more subordinate chapters. To qualify, the parent has to have authority to require the subordinates to keep adequate books and records, use the same accounting period, and supply the financial data needed for the return.¹⁰

Unrelated Business Income Adds Form 990-T

A tax-exempt organization that earns $1,000 or more in gross income from an unrelated business activity has to file Form 990-T in addition to the regular Form 990 series return.¹¹ An unrelated business is one that is regularly carried on and not substantially related to the organization’s exempt purpose. Common examples include advertising revenue in a nonprofit publication, rental income from debt-financed property, and commercial services unrelated to the mission. Form 990-T is a separate obligation and does not replace the main return. Consolidated filing is available only in narrow circumstances involving title-holding corporations.

Private Foundation Filings Cover More Ground

Form 990-PF captures items that don’t appear on the standard Form 990. Private foundations pay a 1.39% excise tax on net investment income under Section 4940.¹² They also have to distribute at least 5% of the fair market value of their non-charitable-use assets each year as qualifying distributions, meaning grants, program expenses, or other charitable spending. Form 990-PF tracks whether the foundation met that minimum, and a 30% tax applies to any amount left undistributed.¹³ A foundation involved in certain prohibited transactions, such as self-dealing with insiders or political expenditures, may also need to file Form 4720 to report the resulting excise taxes.¹⁴

What Happens If a Required Filer Skips It

Late or incomplete returns run up a daily penalty for as long as the failure continues.¹⁵ The base amounts are adjusted each year for inflation. For returns due in 2026:

Organizations with gross receipts of $1,309,500 or less: $25 per day, capped at the lesser of $13,000 or 5% of gross receipts for the year.
Organizations with gross receipts above $1,309,500: $130 per day, capped at $65,000.

The same penalties apply to an incomplete or incorrect return filed on time.¹⁶

1
Internal Revenue Service. Instructions for Form 990 Return of Organization Exempt From Income Tax (2025)
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Internal Revenue Service. About Form 990, Return of Organization Exempt from Income Tax
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Internal Revenue Service. Annual Information Returns – Section 527 Political Organizations
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eCFR. 26 CFR 1.6033-2 – Returns by Exempt Organizations and Returns by Certain Nonexempt Organizations
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Internal Revenue Service. Form 990 Series Which Forms Do Exempt Organizations File Filing Phase In
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Office of the Law Revision Counsel. 26 USC 6033 – Returns by Exempt Organizations
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Office of the Law Revision Counsel. 26 USC 115 – Income of States, Municipalities, Etc.
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Internal Revenue Service. Annual Filing Requirements for Supporting Organizations
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Internal Revenue Service. Annual Electronic Filing Requirement for Small Exempt Organizations – Form 990-N (e-Postcard)
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Internal Revenue Service. Exempt Organizations CPE Text
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Internal Revenue Service. Unrelated Business Income Tax
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Internal Revenue Service. Tax on Net Investment Income
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Internal Revenue Service. Instructions for Form 990-PF (2025)
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Internal Revenue Service. Instructions for Form 4720
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Office of the Law Revision Counsel. 26 USC 6652 – Failure to File Certain Information Returns
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Internal Revenue Service. Automatic Revocation of Exemption
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Internal Revenue Service. Form 1023 and 1023-EZ – Amount of User Fee
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Internal Revenue Service. Automatic Revocation – How to Have Your Tax-Exempt Status Reinstated