A Detailed Look at Form 990-PF

A Detailed Look at Form 990-PF

Every nonprofit organization that obtained tax exemption from the IRS must file a 990 series return with the IRS in order to stay tax compliant. There are different variants of 990 forms available, and the organizations must choose the applicable one based on their sizes and types. This article will examine one of these 990 variants, Form 990-PF.

Form 990F

What is Form 990-PF?

Form 990-PF is the variant of Form 990 that is intended for private foundations. The organizations that are classified as private foundations by the IRS can use this form to figure the tax based on investment income and to report their annual information to the IRS. Not just filing with the IRS, private foundations must make this return publicly available as well.

Depending on the type of organization and its financial activities, the filers may also need to fill out additional documents called Schedules. Additional Schedules may ask for in-depth details about information provided in the 990-PF.

Who should file Form 990-PF?

As mentioned earlier, Form 990-PF must be filed by organizations that are treated as private foundations. Primarily, this includes

  • Private Foundations described in Section 501(c)(3) and exempt under Section 501(a)
  • Taxable private foundations
  • Section 4947 (a)(1) Nonexempt Charitable Trusts treated as private foundations.

What information do I need to file Form 990-PF?

When you file Form 990-PF Online, you’ll need to provide details about your organization’s revenue, expenses, and changes in net assets or fund balances. Apart from that, here are the major information required to be reported on Form 990-PF

  • Basic organization information such as name, address, and EIN
  • Program service accomplishments
  • Other IRS filings and tax compliance requirements
  • Key personnel, governing body, and management details

When is the filing deadline?

Form 990-PF is due on the 15th day of the 5th month following the end of the organization’s tax year. If this date falls on a weekend or holiday, the deadline will be pushed to the next business day. 

The organizations that need more time to file can get a 6-month extension on the deadline by filing Form 8868 before the original deadline.

Are there penalties for a late form?

The penalty for late filing Form 990-PF is $20 / day up to a maximum of $11,000 or 5% of the foundation’s gross receipts (whichever is less).

For larger private foundations with gross receipts exceeding $1,129,000, the penalty is $110 / day up to a maximum of $56,000 or 5 percent of the foundations’ gross receipts (whichever is less).

How can I file Form 990-PF?

The IRS mandates that all 990 forms must be filed electronically. Organizations will have to find an e-file provider to transmit your form through. The IRS authorizes certain programs through its e-file authorization program. When looking for a safe and reliable provider, look for this verification. 

Filing Form 990-PF online can be tedious, but knowing the basics of the form can help you through the process. Once you know what you are reporting and why it is important to your organization, filing is simpler.

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