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2022
Instructions for Form 990-EZ
Department of the Treasury
Internal Revenue Service
Short Form Return of Organization Exempt From Income Tax
Under Section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code
(except private foundations)
DRAFT AS OF
September 20, 2022
Section references are to the Internal Revenue Code unless
otherwise noted.
Future developments. For the latest information about
developments related to Form 990-EZ and its instructions, such
as legislation enacted after they were published, go to IRS.gov/
Form990EZ.
What’s New
Ann. 2021-18 revoked Ann. 2001-33. Ann. 2001-33, 2001-17
I.R.B. 1137, provided tax-exempt organizations with reasonable
cause for purposes of relief from the penalty imposed under
section 6652(c)(1)(A)(ii) if they reported compensation on their
annual information returns in the manner described in Ann.
2001-33 instead of accordance with certain form instructions.
Ann. 2021-18, 2021-52 I.R.B. 910, revoked Ann. 2001-33 and
instructs affected tax-exempt organizations to follow the specific
instructions to the Forms 990, 990-EZ, and 990-PF, effective for
annual information returns required for taxable years beginning
on or after January 1, 2022.
Reminders
Required electronic filing of Form 990-EZ by exempt organizations. Form 990-EZ must be filed electronically. See
General Instructions D. When, Where, and How To File, later, for
more information.
Section 501(c)(21) trusts. Form 990-BL, Information and
Initial Excise Tax Return for Black Lung Benefit Trusts and
Certain Related Persons, is a historical form. Section 501(c)(21)
trusts can no longer file Form 990-BL and will file Form 990 (or
submit Form 990-N, Electronic Notice (e-Postcard) for
Tax-Exempt Organizations Not Required To File Form 990 or
990-EZ, if eligible) to meet their annual filing obligations under
section 6033. Some section 501(c)(21) trusts may also be
required to file Form 6069, Return of Certain Excise Taxes on
Mine Operators, Black Lung Trusts, and Other Persons Under
Sections 4951, 4952, and 4953. See the Instructions for Form
990 for more information.
Purpose of Form
Form 990, Return of Organization Exempt From Income Tax,
and Form 990-EZ are used by tax-exempt organizations,
nonexempt charitable trusts (that are not treated as private
foundations), and section 527 political organizations to provide
the IRS with the information required by section 6033.
An organization's completed Form 990 or 990-EZ, and a
section 501(c)(3) organization's Form 990-T, Exempt
Organization Business Income Tax Return, are generally
available for public inspection as required by section 6104.
Schedule B (Form 990), Schedule of Contributors, is open for
public inspection for section 527 organizations filing Form 990 or
990-EZ. Form 990-PF, Return of Private Foundation or Section
4947(a)(1) Trust Treated as Private Foundation, is also open for
public inspection for organizations filing Form 990-PF. For other
organizations that file Form 990 or 990-EZ, parts of Schedule B
(Form 990) can be open to public inspection. For more details,
Sep 19, 2022
see Appendix D: Public Inspection of Returns, later, and the
Instructions for Schedule B (Form 990).
Some members of the public rely on Form 990 or 990-EZ as
the primary or sole source of information about a particular
organization. How the public perceives an organization in such
cases may be determined by the information presented on its
return.
Other purposes of Form 990 and 990-EZ include the following.
1. Form 990-EZ can be filed by organizations with gross
receipts of less than $200,000 and total assets of less than
$500,000 at the end of their tax year.
2. Sponsoring organizations of donor advised funds (as
defined in section 4966(d)(1)), organizations that operate a
hospital facility, organizations recognized by the IRS as
section 501(c)(29) nonprofit health insurance issuers, and
certain controlling organizations defined in section 512(b)
(13) must file Form 990 rather than Form 990-EZ regardless
of the amount of their gross receipts and total assets. See
General Instructions A. Who Must File, and the instructions
for lines 44 and 45, later, before completing this form.
3. Form 990-EZ can’t be used by a private foundation required
to file Form 990-PF. A section 501(c)(3) or section 4947(a)
(1) organization should refer to the Instructions for
Schedule A (Form 990), Public Charity Status and Public
Support, to determine whether it is a private foundation.
4. Form 990 must be used to file a group return, not Form
990-EZ. See General Instructions A, later.
General Instructions
Overview of Form 990-EZ. Form 990-EZ is an annual
information return required to be filed with the IRS by many
organizations exempt from income tax under section 501(a), and
certain political organizations and nonexempt charitable trusts.
Parts I through V of the form must be completed by all filing
organizations (Part VI must be completed by section 501(c)(3)
organizations and section 4947(a)(1) nonexempt charitable
trusts), and require reporting on the organization's exempt and
other activities, finances, compliance with certain federal tax
filings and requirements, and compensation paid to certain
persons. Additional schedules are required to be completed
depending on the activities and type of organization. The
completed Form 990-EZ filed with the IRS, except for certain
contributor information on Schedule B (Form 990), is required to
be made available to the public by the IRS and the filing
organization (see Appendix D, later). Also, the organization may
be required to file the completed Form 990-EZ with state
governments to satisfy state reporting requirements. See
Appendix G: Use of Form 990 or 990-EZ To Satisfy State
Reporting Requirements, later.
Reminder: Don’t Include Social Security Number on
Publicly Disclosed Forms. Because the filing
CAUTION organization and the IRS are required to publicly
disclose the organization’s annual information returns, social
!
Cat. No. 64888C
Part II, line 25, column (B)) as of the end of the year, without
reduction for liabilities.
For purposes of Form 990 or 990-EZ reporting, the term
“section 501(c)(3)” includes organizations exempt under
sections 501(e) and (f) (cooperative service organizations),
501(j) (amateur sports organizations), 501(k) (childcare
organizations), and 501(n) (charitable risk pools). In addition,
any organization described in one of these sections is also
subject to section 4958 if it obtains a determination letter from
the IRS stating that it is described in section 501(c)(3).
security numbers shouldn’t be included on this form. By law, with
limited exceptions, neither the organization nor the IRS may
remove that information before making the form publicly
available. Documents subject to disclosure include schedules
and attachments filed with the form. For more information, see
Appendix D, later.
Helpful hints. The following hints may help you more efficiently
review these instructions and complete the form.
DRAFT AS OF
September 20, 2022
1. Throughout these instructions, “the organization” and the
“filing organization” both refer to the organization filing Form
990-EZ.
Form 990-N. If an organization normally has annual gross
receipts of $50,000 or less, it must submit Form 990-N if it
doesn’t file Form 990 or 990-EZ (with exceptions described later
for certain section 509(a)(3) supporting organizations and for
certain organizations described in General Instructions B, later).
If the organization chooses to file Form 990-EZ, be sure to file a
complete return. See Appendix B, later, for a discussion of gross
receipts and General Instructions H. Requirements for a Properly
Completed Form 990-EZ, later, for a discussion of a complete
return.
2. The examples appearing throughout these instructions are
illustrative only and for the purpose of completing Form
990-EZ, but aren’t all-inclusive.
3. Instructions for the Form 990-EZ schedules are published
separately from these instructions.
4. Unless otherwise specified, information should be provided
for the organization’s tax year. For instance, an organization
should answer “Yes” to a question asking whether it
conducted a certain type of activity only if it conducted that
activity during the tax year.
Foreign and U.S. possession organizations. Foreign
organizations and U.S. possession organizations, as well as
domestic organizations, must file Form 990 or 990-EZ unless
specifically excepted under General Instructions B, later. Report
amounts in U.S. dollars, and state what conversion rate the
organization uses. Combine amounts from inside and outside
the United States and report the total for each item. All
information must be written in English.
Organizations that have total gross income from
unrelated trades or businesses of at least $1,000 are
CAUTION also required to file Form 990-T in addition to any
required Form 990, 990-EZ, or 990-N.
!
A. Who Must File
Section 501(c)(21) black lung trusts. The trustee of a trust
exempt from tax under section 501(a) and described in section
501(c)(21) must file Form 990 and not Form 990-EZ, unless the
trust normally has gross receipts in each tax year of not more
than $50,000 and can file Form 990-N.
Most organizations exempt from income tax under section
501(a) must file an annual information return (Form 990 or
990-EZ) or submit an annual electronic notice (Form 990-N,
Electronic Notice (e-Postcard) for Tax-Exempt Organizations
Not Required To File Form 990 or Form 990-EZ), depending
upon the organization's gross receipts and total assets.
Sponsoring organizations of donor advised funds.
Sponsoring organizations of donor advised funds (as defined in
section 4966(d)(1)) must file Form 990 and not Form 990-EZ.
See line 44a and the related instructions.
Form 990-EZ. If an organization has gross receipts less than
$200,000 and total assets at the end of the year less than
$500,000, it can file Form 990-EZ, instead of Form 990. But see
the special rules later regarding Section 501(c)(21) black lung
trusts, Sponsoring organizations of donor advised funds,
Organizations that operate one or more hospital facilities,
Section 501(c)(29) nonprofit health insurance issuers, and
Controlling organizations described in section 512(b)(13).
Organizations that operate one or more hospital facilities.
Organizations that operated one or more hospital facilities during
the tax year must file Form 990, and not Form 990-EZ, and
complete Schedule H (Form 990), Hospitals. A “hospital facility”
is a facility that is required to be licensed, registered, or similarly
recognized by a state as a hospital. See line 44b and the related
instructions.
Form 990. Form 990 (not 990-EZ or 990-N) must be filed by an
organization exempt from income tax under section 501(a)
(including an organization that hasn’t applied for recognition of
exemption or whose application for recognition of exemption is
pending) if it has either gross receipts greater than or equal to
$200,000 or total assets greater than or equal to $500,000 at the
end of the tax year (with exceptions described below for
organizations eligible to submit Form 990-N and for certain
organizations described in General Instructions B. Organizations
Not Required To File Form 990 or 990-EZ, later). Organizations
that must file include the following.
• Organizations described in section 501(c)(3) (other than
private foundations).
• Organizations described in other section 501(c)
subsections.
Section 501(c)(29) nonprofit health insurance issuers.
Nonprofit health insurance issuers described in section 501(c)
(29) must file Form 990 and not Form 990-EZ.
Controlling organizations described in section 512(b)(13).
A controlling organization of one or more controlled entities, as
described in section 512(b)(13), must file Form 990 and not
Form 990-EZ if it is required to file an annual information return
for the year and if there was a certain type of transfer of funds
between the controlling organization and any controlled entity
during the year. See line 45 and the related instructions.
Section 509(a)(3) supporting organizations. A section
509(a)(3) supporting organization must file Form 990 or 990-EZ,
even if its gross receipts are normally $50,000 or less, and even
if it is described in Rev. Proc. 96-10, 1996-1 C.B. 577, or is an
affiliate of a governmental unit described in Rev. Proc. 95-48,
1995-2 C.B. 418, unless it qualifies as one of the following.
Gross receipts. Gross receipts are the total amounts the
organization received from all sources during its annual
accounting period, without subtracting any costs or expenses.
See Appendix B: How To Determine Whether an Organization's
Gross Receipts Are Normally $50,000 (or $5,000) or Less, later,
for a discussion of gross receipts. Total assets is the amount
reported by the organization on its balance sheet (Form 990-EZ,
1. An integrated auxiliary of a church, as described in
Regulations section 1.6033-2(h).
2. The exclusively religious activities of a religious order.
-2-
2022 Instructions for Form 990-EZ
B. Organizations Not Required To File
Form 990 or 990-EZ
3. An organization whose gross receipts are normally not more
than $5,000 that supports a section 501(c)(3) religious
organization.
An organization described below doesn’t have to file Form 990
or 990-EZ even if it has at least $200,000 of gross receipts or
$500,000 total assets at the end of the tax year (except for
section 509(a)(3) supporting organizations described in General
Instructions A). See General Instructions A, earlier, for
determining whether the organization can file Form 990-EZ
instead of Form 990. An organization described in item 10 or 11
under Certain organizations with limited gross receipts, later, is
required to submit Form 990-N unless it voluntarily files Form
990 or 990-EZ, as applicable.
If the organization is described in (3), then it must submit
Form 990-N unless it voluntarily files Form 990 or 990-EZ.
Section 501(c)(7) and 501(c)(15) organizations. Section
501(c)(7) and 501(c)(15) organizations apply the same gross
receipts test as other organizations to determine whether they
must file a Form 990 or 990-EZ, but use a different definition of
gross receipts to determine whether they qualify as tax exempt
for the tax year. See Appendix C: Special Gross Receipts Tests
for Determining Exempt Status of Section 501(c)(7) and Section
501(c)(15) Organizations, later, for more information.
DRAFT AS OF
September 20, 2022
Certain religious organizations
Section 527 political organizations. Tax-exempt political
organizations must file Form 990 or 990-EZ unless their annual
gross receipts are less than $25,000 during the tax year or they
are otherwise excepted under General Instructions B, later. A
section 527 political organization that is a qualified state or local
political organization must file Form 990 or 990-EZ only if it has
gross receipts of $100,000 or more. Political organizations aren’t
required to submit Form 990-N.
1. A church, an interchurch organization of local units of a
church, a convention or association of churches, or an
integrated auxiliary of a church as described in Regulations
section 1.6033-2(h) (such as a men's or women's
organization, religious school, mission society, or youth
group).
2. A church-affiliated organization that is exclusively engaged
in managing funds or maintaining retirement programs and
is described in Rev. Proc. 96-10. But see the filing
requirements for section 509(a)(3) supporting organizations
in General Instructions A, earlier.
Section 4947(a)(1) nonexempt charitable trusts. A
nonexempt charitable trust described under section 4947(a)(1)
(if it isn’t treated as a private foundation) is required to file Form
990 or 990-EZ unless excepted under General Instructions B,
later. Such a trust is treated like an exempt section 501(c)(3)
organization for purposes of completing the form. Section
4947(a)(1) trusts must complete all sections of the Form 990-EZ
and schedules that 501(c)(3) organizations must complete. All
references to a section 501(c)(3) organization in Form 990-EZ,
schedules, and instructions include a section 4947(a)(1) trust
(for instance, such a trust must complete Schedule A (Form
990)), unless otherwise specified. If such a trust doesn’t have
any taxable income under subtitle A of the Code, it can file Form
990 or 990-EZ to meet its section 6012 filing requirement and
doesn’t have to file Form 1041, U.S. Income Tax Return for
Estates and Trusts.
3. A school below college level affiliated with a church or
operated by a religious order, as described in Regulations
section 1.6033-2(g)(1)(vii).
4. A mission society sponsored by, or affiliated with, one or
more churches or church denominations, if more than half
of the society's activities are conducted in, or directed at,
persons in foreign countries.
5. An exclusively religious activity of any religious order
described in Rev. Proc. 91-20, 1991-1 C.B. 524.
Certain governmental organizations
Group returns. A group return filed by the central or parent
organization on behalf of the subordinates in a group exemption
must be filed using Form 990, not Form 990-EZ.
6. A state institution whose income is excluded from gross
income under section 115.
7. A governmental unit or affiliate of a governmental unit
described in Rev. Proc. 95-48. But see the filing
requirements for section 509(a)(3) supporting organizations
in General Instructions A, earlier.
Returns when exempt status not established. An
organization is required to file Form 990 or 990-EZ in
accordance with these instructions if the organization claims
exempt status under section 501(a) but hasn’t established such
exempt status by filing Form 1023, Application for Recognition of
Exemption Under Section 501(c)(3) of the Internal Revenue
Code; Form 1023-EZ, Streamlined Application for Recognition of
Exemption Under Section 501(c)(3) of the Internal Revenue
Code; Form 1024, Application for Recognition of Exemption
Under Section 501(a); or Form 1024-A, Application for
Recognition of Exemption Under Section 501(c)(4) of the
Internal Revenue Code, and receiving an IRS determination
letter recognizing exempt status. In such cases, the organization
must check the “Application pending” checkbox in Item B of the
Form 990 or 990-EZ header (whether or not a Form 1023,
1023-EZ, 1024, or 1024-A has been filed) to indicate that Form
990 or 990-EZ is being filed in the belief that the organization is
exempt under section 501(a).
To qualify for recognition of tax exemption retroactive to its
date of organization or formation, an organization claiming
tax-exempt status must generally file Form 1023, 1023-EZ,
1024, or 1024-A within 27 months of the end of the month in
which it was legally organized or formed.
8. An organization described in section 501(c)(1). A section
501(c)(1) organization is a corporation organized under an
act of Congress that is an instrumentality of the United
States, and exempt from federal income taxes.
Certain political organizations
9. A political organization that is:
• A state or local committee of a political party,
• A political committee of a state or local candidate,
• A caucus or association of state or local officials, or
• Required to report under the Federal Election
Campaign Act of 1971 as a political committee (as
defined in section 301(4) of such Act).
Certain organizations with limited gross receipts
10. An organization whose gross receipts are normally $50,000
or less. Such organizations are generally required to submit
Form 990-N if they choose not to file Form 990 or 990-EZ.
To determine what an organization's gross receipts
“normally” are, see Appendix B, later.
11. Foreign organizations and organizations located in U.S.
possessions, whose gross receipts from sources within the
United States are normally $50,000 or less, and which
2022 Instructions for Form 990-EZ
-3-
the tax year being reported, as if the years shown in the form text
and headings were updated.
For example, if filing for a short period beginning in 2023 on
the 2022 Form 990-EZ, provide the information in Schedule A
(Form 990), Part II, for the tax years 2019 through 2023, rather
than for tax years 2018 through 2022.
didn’t engage in significant activity in the United States
(other than investment activity). Such organizations, if they
claim U.S. tax exemption or are recognized by the IRS as
tax exempt, are generally required to submit Form 990-N if
they choose not to file Form 990 or 990-EZ.
If a foreign organization or organization located in a U.S.
possession is required to file a Form 990 or 990-EZ, then its
worldwide gross receipts, as well as assets, are taken into
account in determining whether it qualifies to file Form
990-EZ. To determine what an organization's gross receipts
normally are, see Appendix B, later.
Certain organizations that file different kinds of
annual information returns
Accounting period change. If the organization changes its
accounting period, it must file a Form 990-EZ for the short period
resulting from the change. Enter “Change of Accounting Period”
at the top of this short-period return if it is being filed on the 2021
Form 990-EZ.
If the organization has previously changed its annual
accounting period at any time within the 10-calendar-year period
that includes the beginning of the short period resulting from
the current change in accounting period, and it had a Form
990 series or income tax return filing requirement at any time
during that 10-year period, it must also file a Form 1128,
Application To Adopt, Change, or Retain a Tax Year, with the
short-period return. See Rev. Proc. 85-58, 1985-2 C.B. 740.
If an organization that submits Form 990-N changes its
accounting period, it must report this change on Form 990,
990-EZ, or 1128, or by sending a letter to:
DRAFT AS OF
September 20, 2022
12. A private foundation (including a private operating
foundation) exempt under section 501(c)(3) and described
in section 509(a). Use Form 990-PF for a taxable private
foundation, a section 4947(a)(1) nonexempt charitable trust
treated as a private foundation, and a private foundation
terminating its status by becoming a public charity under
section 507(b)(1)(B) for tax years within its 60-month
termination period. If the section 507(b)(1)(B) organization
successfully terminates, then it files Form 990 or 990-EZ in
its final year of termination.
Internal Revenue Service
1973 Rulon White Blvd.
Ogden, UT 84201
13. A religious or apostolic organization described in section
501(d). Use Form 1065, U.S. Return of Partnership Income.
14. A stock bonus, pension, or profit-sharing trust that qualifies
under section 401. Use Form 5500, Annual Return/Report
of Employee Benefit Plan.
Accounting Methods
An “accounting method,” for federal income tax purposes, is a
practice a taxpayer follows to determine the year in which to
report revenue and expenses for federal income tax purposes.
An accounting method includes not only the overall plan of
accounting for gross income or deductions (for example, an
accrual method or the cash receipts and disbursement method),
but also the treatment of an item used in such overall plan.
However, a practice that does not affect the timing for reporting
an item of income or deduction for purposes of determining
taxable income is not an accounting method. A taxpayer,
including a tax-exempt entity, generally adopts any permissible
accounting method in the first year in which it uses the method in
determining its taxable income. See Rev. Proc. 2015-13, 2015-5
I.R.B. 419, as modified by Rev. Proc. 2021-34, 2021-35 I.R.B. 1,
Rev. Proc. 2022-14, 2022-7 I.R.B. 502, or its successor.
Subordinate organizations in a group exemption that are
TIP included in a group return filed for the tax year by the
central organization shouldn’t file a separate Form 990
or 990-EZ, or submit Form 990-N for the tax year.
A public charity described in section 170(b)(1)(A)(iv) or
TIP (vi) or 509(a)(2) that isn’t within its initial 5 years of
existence should first complete Part II or III of
Schedule A (Form 990) to ensure that it continues to qualify as a
public charity for the tax year. If it fails to qualify as a public
charity, then it must file Form 990-PF rather than Form 990-EZ.
C. Accounting Periods and Methods
Accounting Periods
An exempt organization may adopt an accounting
method not only for purposes of calculating taxable
CAUTION income, but also for purposes of determining whether
taxable income will be subject to federal income tax. For
example, a tax-exempt entity may adopt an accounting method
for an item of income from an unrelated trade or business activity
even if the gross income from such activity is less than $1,000
and is therefore not taxed for federal income tax purposes
pursuant to Regulations section 1.6012-2(e).
!
Calendar year. Use the 2022 Form 990-EZ to report on the
2022 calendar year accounting period. A calendar year
accounting period begins on January 1 and ends on December
31.
Fiscal year. If the organization has established a fiscal year
accounting period, use the 2022 Form 990-EZ to report on the
organization's fiscal year that began in 2022 and ended 12
months later. A fiscal year accounting period should normally
coincide with the natural operating cycle of the organization. Be
certain to indicate in the heading of Form 990-EZ the date the
organization's fiscal year began in 2022 and the date the fiscal
year ended in 2023.
An accounting method for an item of income or deduction
may generally be adopted separately for each of the taxpayer's
trades or businesses. However, in order to be permissible, an
accounting method must clearly reflect the taxpayer's income.
Unless instructed otherwise, the organization should generally
use the same accounting method on the return (including Form
990-EZ and all schedules) to report revenue and expenses that
it regularly uses to keep its books and records.
Short period. A short accounting period is a period of less than
12 months, which exists when an organization first commences
operations, changes its accounting period, or terminates. If the
organization's short year began in 2022 and ended before
December 31, 2022 (not on or after December 31, 2022), it may
use either 2021 Form 990-EZ or 2022 Form 990-EZ or 990 to file
for such short year. The 2022 form may also be used for a short
period beginning in 2023 and ending before December 31, 2023
(not on or after December 31, 2023). When doing so, provide the
information for designated years listed on the return, other than
Accounting method change. Once a taxpayer, including a
tax-exempt entity, adopts an accounting method for federal
income tax purposes, the taxpayer must generally request the
IRS's consent before it can change its accounting method (even
if the year in which the taxpayer seeks to make the change is a
year in which it generates only tax-exempt income or is
-4-
2022 Instructions for Form 990-EZ
Form 990-EZ for state reporting purposes, it can file an identical
return with the IRS even though the return doesn’t agree with the
books of account, unless the way one or more items are
reported on the state return conflicts with the instructions for
preparing Form 990-EZ for filing with the IRS.
otherwise not taxed on its taxable income). In most cases, a
taxpayer requests consent to change an accounting method by
filing Form 3115, Application for Change in Accounting Method.
See Rev. Proc. 2015-13, as modified by Rev. Proc. 2021-34,
Rev. Proc. 2022-14, or any successor, for general procedures
for obtaining consent to change an accounting method.
Example 1. The organization maintains its books on the
cash receipts and disbursements method of accounting but
prepares a Form 990-EZ return for the state based on the
accrual method. It could use that return for reporting to the IRS.
Depending on the specific accounting method change
being requested, the taxpayer may be able to request
CAUTION “automatic” consent. This means that as long as the
taxpayer follows the applicable procedures, the taxpayer does
not have to wait for formal approval by the IRS before applying
the new accounting method. See Rev. Proc. 2022-14, 2022-7
I.R.B. 502, or its successor, for a list of accounting method
changes that generally qualify for automatic consent.
!
DRAFT AS OF
September 20, 2022
Example 2. A state reporting requirement requires the
organization to report certain revenue, expense, or balance
sheet items differently from the way it normally accounts for
them on its books. A Form 990-EZ prepared for that state is
acceptable for IRS reporting purposes if the state reporting
requirement doesn’t conflict with the Instructions for Form
990-EZ.
For example, a tax-exempt entity that has adopted an
accounting method for an item of income from an unrelated
trade or business must generally request consent before it can
change its method of accounting for that item in any subsequent
year. This is true regardless of whether gross income from the
unrelated trade or business is greater than or equal to $1,000 in
such subsequent year.
Alternatively, if a taxpayer, including a tax-exempt entity, has
not yet adopted an accounting method for an item of income or
deduction, a change in how the entity reports the item is not a
change in accounting method. In this case, the procedures
applicable to requests for accounting method changes (for
example, the requirement to file Form 3115) are not applicable.
See Rev. Proc. 2015-13, as modified by Rev. Proc. 2021-34,
Rev. Proc. 2022-14, or its successor, for the definition of what
constitutes an accounting method change.
Thus, a tax-exempt entity that has never taken into account
an item of income or deduction in determining taxable income
does not have to request consent to change its method of
reporting that item on Form 990-EZ. Additionally, a tax-exempt
entity that has never been subject to federal income tax on an
item of income or deduction but that is required to file a Form
990-T solely due to owing a section 6033(e)(2) proxy tax does
not have to request consent to change its method for reporting
the item.
An organization should keep a reconciliation of any
differences between its books of account and the Form 990-EZ
that is filed.
See Pub. 538, Accounting Periods and Methods, and
TIP the instructions for Forms 1128 and 3115, about
reporting changes to accounting periods and methods.
D. When, Where, and How To File
File Form 990-EZ by the 15th day of the 5th month after the
organization's accounting period ends (May 15 for a
calendar-year filer). If the due date falls on a Saturday, Sunday,
or legal holiday, file on the next business day. A business day is
any day that isn’t a Saturday, Sunday, or legal holiday.
If the organization is liquidated, dissolved, or terminated, file
the return by the 15th day of the 5th month after liquidation,
dissolution, or termination.
If the return isn’t filed by the due date (including any
extension granted), attach a statement giving the reason(s) for
not filing on time.
Required electronic filing. If you are filing a 2022 Form
990-EZ, you are required to file electronically.
For additional information on the electronic filing requirement,
visit IRS.gov/E-file.
Adjustments required when changing an accounting method. A taxpayer, including a tax-exempt entity, that changes its
accounting method must generally calculate and report an
adjustment to ensure that no portion of the item being changed
is permanently omitted or duplicated (see section 481(a)).
However, depending on the specific method change, the IRS
may provide that an adjustment is not required or permitted. An
organization must report any adjustment required by section
481(a) in Part I, line 20 (other changes in net assets or fund
balances), as a net asset adjustment made during the tax year.
The organization must explain in Schedule O (Form 990),
Supplemental Information to Form 990 or 990-EZ, the change
and net asset adjustment.
E. Extension of Time To File
Use Form 8868, Application for Automatic Extension of Time To
File an Exempt Organization Return, to request an automatic
extension of time to file.
F. Amended Return/Final Return
To amend the organization's return for any year, file a new return
including any required schedules. Use the version of Form
990-EZ applicable to the year being amended. The amended
return must provide all the information called for by the form and
instructions, not just the new or corrected information. Check the
“Amended return” box in Item B of the heading of the return.
Also, list in Schedule O (Form 990) which parts and schedules of
Form 990-EZ were amended and describe the amendments.
Generally, a taxpayer, including a tax-exempt entity, will
recognize a positive section 481(a) adjustment (that is,
CAUTION an increase to income) ratably over 4 tax years and will
recognize a negative section 481(a) adjustment in full in the year
of change. See Rev. Proc. 2015-13, as modified by Rev. Proc.
2021-34, Rev. Proc. 2022-14, or its successor.
!
The organization can file an amended return at any time to
change or add to the information reported on a previously filed
return for the same period. It must make the amended return
available for inspection for 3 years from the date of filing or 3
years from the date the original return was due, whichever is
later.
However, as discussed above, if a tax-exempt entity has not
yet adopted an accounting method for an item, a change in how
the entity reports the item for purposes of the Form 990-EZ is not
a change in accounting method. In this case, an adjustment
under section 481(a) is not required or permitted.
If the organization needs a copy of its previously filed return, it
can file Form 4506-A, Request for a Copy of Exempt or Political
Organization IRS Form. Go to IRS.gov/Forms for information on
getting blank tax forms.
State reporting. Many states that accept Form 990-EZ in place
of their own forms require that all amounts be reported based on
the accrual method of accounting. If the organization prepares
2022 Instructions for Form 990-EZ
-5-
after the due date for filing its third annual return or notice. P.L.
116-25 requires the IRS to notify an organization after the
organization’s second consecutive failure to file their required
return or notice with information about how to comply with the
filing requirements. The Act applies to failures to file returns or
notices for 2 consecutive years if the return or notice for the
second year is required to be filed after December 31, 2019.
Organizations that lose their exemption may need to file income
tax returns and pay income tax, but may apply for reinstatement
of exemption. For details, go to IRS.gov/EO.
If the return is a final return, the organization must check the
“Final return/terminated” box in Item B of the heading of the
return and complete Schedule N (Form 990), Liquidation,
Termination, Dissolution, or Significant Disposition of Assets.
Amended returns and state filing considerations. State law
can require that the organization send a copy of an amended
Form 990-EZ return (or information provided to the IRS
supplementing the return) to the state with which it filed a copy of
Form 990-EZ originally to meet that state's filing requirement. A
state can require an organization to file an amended Form
990-EZ to satisfy state reporting requirements, even if the
original return was accepted by the IRS.
DRAFT AS OF
September 20, 2022
H. Requirements for a Properly
Completed Form 990-EZ
G. Failure-To-File Penalties
All organizations filing Form 990-EZ must complete Parts I
through V of Form 990-EZ, and any required schedules and
attachments. Section 501(c)(3) organizations must also
complete Part VI. If an organization isn’t required to file Form
990-EZ but chooses to do so, it must file a complete return and
provide all of the information requested, including the required
schedules.
Against the organization. Under section 6652(c)(1)(A), a
penalty of $20 a day, not to exceed the lesser of $11,000 or 5%
of the gross receipts of the organization for the year, can be
charged when a return is filed late, unless the organization can
show that the late filing was due to reasonable cause.
Organizations with annual gross receipts exceeding $1,129,000
are subject to a penalty of $110 for each day failure continues
(with a maximum penalty for any one return of $56,000). The
penalty applies on each day after the due date that the return
isn’t filed.
Tax-exempt organizations that are required to file
electronically but don’t are deemed to have failed to file the
return. This is true even if a paper return is submitted.
The penalty can also be charged if the organization files an
incomplete return, such as by failing to complete a required line
item or a required part of a schedule. To avoid penalties and
having to supply missing information later:
Public inspection. In general, all information the organization
reports on or with its Form 990-EZ, including schedules and
attachments, will be available for public inspection. Note,
however, the special rules for Schedule B (Form 990), a required
schedule for certain organizations that file Form 990-EZ. Make
sure the forms and schedules are clear enough to photocopy
legibly. For more information on public inspection requirements,
see Appendix D, later, and Pub. 557, Tax-Exempt Status for
Your Organization.
Signature. A Form 990-EZ isn’t complete without a proper
signature. For details, see the instructions under Signature
Block, later.
1. Complete all applicable line items;
Recordkeeping. The organization's records should be kept as
long as they can be needed for the administration of any
provision of the Internal Revenue Code. Usually, records that
support an item of income, deduction, or credit must be kept a
minimum of 3 years from the date the return is due or filed,
whichever is later. Keep records that verify the organization's
basis in property as long as they are needed to figure the basis
of the original or replacement property. Applicable law and an
organization's policies can require that the organization retain
records longer than 3 years.
The organization should also keep copies of any returns it
has filed. They help in preparing future returns and making
computations when filing an amended return.
2. Unless instructed to skip a line, answer each question on
the return;
3. Make an entry (including a zero when appropriate) on all
lines requiring an amount or other information to be
reported; and
4. Provide required explanations as instructed.
Also, this penalty can be imposed if the organization's return
contains incorrect information. For example, an organization that
reports contributions net of related fundraising expenses may be
subject to this penalty.
Use of a paid preparer doesn’t relieve the organization of its
responsibility to file a complete and accurate return.
Rounding off to whole dollars. The organization can round off
cents to whole dollars on the returns and schedules. If the
organization does round to whole dollars, the organization must
round all amounts. To round, drop amounts under 50 cents and
increase amounts from 50 to 99 cents to the next dollar. For
example, $1.49 becomes $1 and $2.50 becomes $3. If the
organization has to add two or more amounts to figure the
amount to enter on a line, include cents when adding the
amounts and round off only the total.
Against responsible person(s). If the organization doesn’t file
a complete return or doesn’t furnish correct information, the IRS
will send the organization a letter that includes a fixed time to
fulfill these requirements. After that period expires, the person
failing to comply will be charged a penalty of $10 a day. The
maximum penalty on all persons for failures for any one return
will not exceed $5,500.
There are also penalties (fines and imprisonment) for willfully
not filing returns and for filing fraudulent returns and statements
with the IRS (sections 7203, 7206, and 7207). States can
impose additional penalties for failure to meet their separate
filing requirements.
Completing all lines. Make an entry (including a zero (“-0-”)
when appropriate) on all lines requiring an amount or other
information to be reported. Do not leave any applicable lines
blank, unless expressly instructed to skip a line. If answering a
line is predicated on a “Yes” answer to the preceding line, and if
the organization's answer to the preceding line was “No,” then
leave the “If Yes” line blank.
In general, answers can be explained or supplemented in
Schedule O (Form 990) if the allotted space in the form or other
schedule is insufficient, or if a “Yes” or “No” answer is required
but the organization wishes to explain its answer.
Automatic revocation for nonfiling for 3 consecutive years.
The law requires most tax-exempt organizations to file an annual
Form 990, 990-EZ, or 990-PF with the IRS, or to submit a Form
990-N e-Postcard to the IRS. For more information on
exceptions to this requirement, visit Annual Exempt Organization
Return: Who Must File. If an organization fails to file an annual
return or submit an annual notice as required for 3 consecutive
years, its tax-exempt status is automatically revoked on and
-6-
2022 Instructions for Form 990-EZ
Missing or incomplete parts of the form and/or required
schedules may result in the IRS contacting you to obtain the
missing information. Failure to supply the information may result
in a penalty being assessed to your account. For tips on filing
complete returns, go to IRS.gov/Charities.
Assembling Form 990-EZ, schedules, and attachments.
Before filing Form 990-EZ, assemble the package of forms,
schedules, and attachments in the following order.
1. Core form with all parts completed (Parts I–V, Part VI by
section 501(c)(3) organizations, Signature Block).
Reporting proper amounts. Some lines request information
reported on other forms filed by the organization, such as Forms
W-2, 1099, and 990-T. If the organization is aware that the
amount actually reported on the other form is incorrect, it must
report on Form 990-EZ the information that should have been
reported on the other form (in addition to filing an amended form
with the proper amount).
In general, don’t report negative numbers, but report zero
(“-0-”) in lieu of a negative number, unless the instructions
provide otherwise. Report revenue and expenses separately and
don’t net related items, unless otherwise provided.
2. Schedules A, B, C, E, G, L, N, and/or O, completed as
applicable, filed in alphabetical order.
DRAFT AS OF
September 20, 2022
3. Attachments, completed as applicable. These include (a)
name change amendment to organizing document required
by Item B of the heading on page 1 of the return; (b)
reasonable cause explanation for a late-filed return; and (c)
articles of merger or dissolution, resolutions, and plans of
liquidation or merger required by Schedule N (Form 990).
Do not attach materials not authorized in the instructions,
or not otherwise authorized by the IRS.
Inclusion of activities and items of disregarded entities
and joint ventures. An organization must report in its Form
990-EZ all of the revenues, expenses, assets, liabilities, and net
assets or funds of a disregarded entity of which it is the sole
member, and must report in its Form 990-EZ its share of all such
items of a joint venture or other investment or arrangement
treated as a partnership for federal income tax purposes. This
includes passive investments. In addition, the organization must
generally report the activities of a disregarded entity or a joint
venture as its own activities in the appropriate parts and
schedules of Form 990-EZ.
To facilitate the processing of your return, don’t
password protect or encrypt PDF attachments.
CAUTION Password protecting or encrypting a PDF file that is
attached to an e-filed return prevents the IRS from opening the
attachment.
!
Specific Instructions for Form
990-EZ
Completing the Heading of Form
990-EZ
A disregarded entity must generally use the employer
TIP identification number (EIN) of its sole member. An
exception applies to employment taxes. For wages paid
to employees of a disregarded entity, the disregarded entity
must file separate employment tax returns and use its own EIN
on such returns. See Regulations sections 301.6109-1(h) and
301.7701-2(c)(2)(iv).
Item A. Accounting Period
File the 2022 return for calendar year 2022 and fiscal years that
began in 2022 and ended in 2023. For a fiscal year return, fill in
the tax year space at the top of page 1 of the return. See
General Instructions C. Accounting Periods and Methods,
earlier, for additional information about accounting periods.
List of required schedules and attachments. An
organization may be required to file one or more schedules of
Form 990-EZ or various other attachments as described in the
form or instructions. The following is a list of the Form 990-EZ
schedules that the organization may have to complete.
• Schedule A, Public Charity Status and Public Support. See
Part V, Other Information.
• Schedule B, Schedule of Contributors. See Item H.
Schedule B.
• Schedule C, Political Campaign and Lobbying Activities,
Part III. See Line 35c. Section 6033(e) Tax for Lobbying
Expenditures.
• Schedule C, Part I. See Line 46. Political Campaign
Activities.
• Schedule C, Part II. See Line 47. Lobbying Activities.
• Schedule E, Schools. See Line 48. Schools.
• Schedule G, Supplemental Information Regarding
Fundraising or Gaming Activities, Parts II and III. See lines
6a through 6d (gaming and fundraising events).
• Schedule L, Transactions With Interested Persons, Part I.
See Line 40b (section 4958 excess benefit transactions).
• Schedule L, Part II. See Line 38. Loans to or From Officers,
Directors, Trustees, and Key Employees.
• Schedule N, Liquidation, Termination, Dissolution, or
Significant Disposition of Assets, Parts I (liquidation,
termination, or dissolution) and II (significant disposition of
net assets). See Line 36. Liquidation, Dissolution,
Termination, or Significant Disposition of Net Assets.
• Schedule O, Supplemental Information to Form 990 or
990-EZ. See lines 8, 10, 16, 20, 24, 26, 31, 33, 34, 35, and
44.
2022 Instructions for Form 990-EZ
Item B. Checkboxes
Address change. Check this box if the organization changed
its address and hasn’t reported such a change on its most
recently filed Form 990, 990-EZ, or 990-N, or in correspondence
to the IRS.
Name change. Check this box if the organization changed its
legal name (not its “doing business as” name) and hasn’t
reported such change on its most recently filed Form 990 or
990-EZ or in correspondence to the IRS. If the organization
changed its name, attach the following documents. (See the
line 34 instructions.)
-7-
IF the organization is...
THEN attach...
a corporation
a copy of the amendment to the
articles of incorporation, and proof of
filing with the appropriate state
authority.
a trust
a copy of the amendment to the trust
instrument, or a resolution to amend
the trust instrument, showing the
effective date of the change of name
and signed by at least one trustee.
Item C. Name and Address
Enter the organization's legal name in the “Name of
organization” box. If the organization operates under a name
different from its legal name, identify its alternate name, after the
legal name, by writing “a.k.a.” (also known as) and the alternate
name of the organization. If multiple a.k.a. names won’t fit in the
box, list them in Schedule O (Form 990). However, if the
organization has changed its legal name, follow the instructions
in Item B for reporting the name change.
DRAFT AS OF
September 20, 2022
an unincorporated association
Include the suite, room, or other unit number after the street
address. If the post office doesn’t deliver mail to the street
address and the organization has a P.O. box, enter the box
number instead of the street address.
a copy of the amendment to the
articles of association, constitution, or
other organizing document, showing
the effective date of the change of
name and signed by at least two
officers, trustees, or members.
If the organization receives its mail in care of a third party
(such as an accountant or an attorney), enter “C/O” on the street
address line, followed by the third party's name and street
address or P.O. box.
Initial return. Check this box if this is the first time the
organization is filing a Form 990-EZ and it hasn’t previously filed
a Form 990, 990-PF, 990-T, or 990-N.
For foreign addresses, enter information in the following
order: city or town, state or province, the name of the country,
and the postal code. Don’t abbreviate the country name.
Final return/terminated. Check this box if the organization has
terminated its existence or ceased to be a section 501(a) or
section 527 organization and is filing its final return as an exempt
organization or section 4947(a)(1) trust. See the instructions for
line 36 that discuss liquidations, dissolutions, terminations, or
significant disposition of net assets. An organization that checks
this box because it has liquidated, terminated, ceased
operations, dissolved, merged into another organization, or has
had its exemption revoked during the tax year must also attach
Schedule N (Form 990).
If a change of address occurs after the return is filed, use
Form 8822-B, Change of Address or Responsible Party —
Business, to notify the IRS of the new address.
Item D. Employer Identification Number (EIN)
Use the EIN provided to the organization for filing its Form
990-EZ and federal tax returns. The organization must have only
one EIN. If the organization has more than one EIN and hasn’t
been advised which to use, send notice to:
An organization must support any claim to have
liquidated, terminated, dissolved, or merged by
CAUTION attaching a certified copy of its articles of dissolution or
merger approved by the appropriate state authority. If a certified
copy of its articles of dissolution or merger isn’t available, the
organization may submit a copy of a resolution(s) of its
governing body approving plans of liquidation, termination,
dissolution, or merger.
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0027
!
State what EINs the organization has, the name and address
to which each number was assigned, and the address of the
organization's principal office. The IRS will advise the
organization which number to use.
A subordinate organization in a group exemption that is
Amended return. Check this box if the organization previously
filed a return with the IRS for the same tax year and is now filing
another return for the same tax year to amend the previously
filed return. Explain on Schedule O (Form 990) which parts,
schedules, or attachments of Form 990-EZ were amended and
describe the amendments. See General Instructions F.
Amended Return/Final Return, earlier, for more information.
TIP filing an individual Form 990-EZ return must use its own
return.
EIN, not that of the central organization or of the group
A section 501(c)(9) voluntary employees' beneficiary
TIP association must use its own EIN and not the EIN of its
sponsor.
Application pending. Check this box if the organization either
has filed a Form 1023, 1023-EZ, 1024, or 1024-A with the IRS
and is awaiting a response, or claims tax-exempt status under
section 501(a) but hasn’t filed Form 1023, 1023-EZ, 1024, or
1024-A to be recognized as tax exempt by the IRS. If this box is
checked, the organization must complete all parts of Form
990-EZ and any required schedules. An organization that is
required to file an annual information return (Form 990 or
990-EZ) or submit an annual electronic notice (Form 990-N) for a
given tax year (see General Instructions A, earlier) must do so
even if it hasn’t filed a Form 1023, 1023-EZ, 1024, or 1024-A
with the IRS if it claims tax-exempt status.
To qualify for recognition of tax exemption retroactive to the
date of its organization or formation, an organization claiming
tax-exempt status must generally file Form 1023, 1023-EZ,
1024, or 1024-A within 27 months of the end of the month in
which it was legally organized or formed.
Item E. Telephone Number
Enter a telephone number of the organization that members of
the public and government personnel can use during normal
business hours to obtain information about the organization's
finances and activities. If the organization doesn’t have a
telephone number, enter the telephone number of an
organization official who can provide such information.
Item F. Group Exemption Number
Enter the four-digit group exemption number if the organization
is included in a group exemption. The group exemption number
(GEN) is a number assigned by the IRS to the central/parent
organization of a group that has a group exemption letter.
Contact the central/parent organization to ascertain the GEN
assigned.
-8-
2022 Instructions for Form 990-EZ
If the organization is covered by a group exemption letter
as a subordinate organization, the organization should
CAUTION file Form 990-EZ only if the organization isn’t included in
a group return filed by the central/parent organization for the tax
year.
Guidelines for Meeting the Requirements of
Schedule B (Form 990)
!
!
Section 501(c)(3) Organization Meeting the
331/3% Support Test of Section 170(b)(1)(A)(vi)
The central/parent organization of a group ruling can’t
file a group return with Form 990-EZ but must use Form
990.
If
Indicate the method of accounting used in preparing this return.
See General Instructions C, earlier.
a section 501(c)(3) organization that met the 331/3% support
test of the regulations under section 509(a)(1) and section
170(b)(1)(A)(vi) didn’t receive a contribution of the greater of
$5,000 or 2% of the amount on line 1 of Form 990-EZ from
any one contributor,*
Then
the organization should check the box in Item H to certify that
it isn’t required to attach Schedule B (Form 990).
Item H. Schedule B (Form 990)
Otherwise
complete and attach Schedule B (Form 990).
DRAFT AS OF
September 20, 2022
CAUTION
Item G. Accounting Method
Whether or not the organization enters any amount on line 1 of
Form 990-EZ, the organization must either check the box in Item
H or attach Schedule B (Form 990). Failure to either check the
box in Item H or file Schedule B (Form 990) will result in a
determination that the return is incomplete. Complete and file
Schedule B (Form 990) if the organization met any of the
following conditions during the tax year.
• It is a section 501(c)(3) organization and met the 331/3%
support test of the regulations under sections 509(a)(1) and
170(b)(1)(A)(vi); checks the box on Schedule A (Form 990),
Part II, line 13, 16a, or 16b; and received from any one
contributor, during the tax year, contributions of the greater
of $5,000 (in money or property) or 2% of the amount on
Form 990-EZ, Part I, line 1 (contributions, gifts, grants, and
similar amounts received). An organization filing Schedule B
(Form 990) can limit the contributors it reports on
Schedule B (Form 990) using this greater than $5,000 or 2%
threshold only if it checks the box on Schedule A (Form
990), Part II, line 13, 16a, or 16b.
• It is a section 501(c)(3) organization that didn’t meet the
331/3% support test of the regulations under sections 509(a)
(1) and 170(b)(1)(A)(vi), and received during the tax year
contributions of $5,000 or more from any one contributor.
• It is a section 501(c)(7), 501(c)(8), or 501(c)(10)
organization that received, during the tax year, (a)
contributions of any amount for use exclusively for religious,
charitable, scientific, literary, or educational purposes; or (b)
contributions of $5,000 or more not exclusively for such
purposes from any one contributor.
• It isn’t a section 501(c)(3), 501(c)(7), 501(c)(8), or 501(c)
(10) organization and it received during the tax year
contributions of $5,000 or more from any one contributor.
See the Instructions for Schedule B (Form 990) for more
information.
Section 501(c)(7), (8), or (10) Organizations
If
a section 501(c)(7), (8), or (10) organization received neither
(1) any contribution or bequest for use exclusively for
religious, charitable, scientific, literary, or educational
purposes, or the prevention of cruelty to children or animals;
nor (2) any contribution of $5,000 or more not exclusively for
such purposes from any one contributor,
Then
the organization should check the box in Item H to certify that
it isn’t required to attach Schedule B (Form 990).
Otherwise
complete and attach Schedule B (Form 990).
All Other Form 990-EZ Organizations (General
Rule)
If
the organization didn’t receive a contribution of $5,000 or
more from any one contributor* (reportable on line 1 of Form
990-EZ),
Then
the organization should check the box in Item H to certify that
it isn’t required to attach Schedule B (Form 990).
Otherwise
complete and attach Schedule B (Form 990).
* To determine if the organization received a contribution of
$5,000 or more from a contributor during the year, add all direct
and indirect gifts, grants, or contributions of $1,000 or more in
cash or property that a contributor made to the organization
during the year. Do not include smaller gifts, grants, or
contributions. See the Instructions for Schedule B (Form 990) for
more information.
Item I. Website
Enter the organization’s current address for its primary website,
as of the date of filing this return. If the organization doesn’t
maintain a website, enter “N/A” (not applicable).
Do not attach substitutes for Schedule B (Form 990).
Parts I, II, and III of Schedule B (Form 990) may be
CAUTION photocopied as needed to provide adequate space for
listing all contributors.
!
Item J. Tax-Exempt Status
Check the applicable box to show the organization's tax-exempt
status. If the organization is exempt under section 501(c) (other
than 501(c)(3)), check the 501(c) box and insert the appropriate
subsection number within the parentheses (for example, “4” for a
501(c)(4) organization). See the chart in Appendix A: Exempt
Organizations Reference Chart, later. The term “section 501(c)
(3)” includes organizations exempt under sections 501(e), (f),
(k), and (n).
For purposes of Schedule B (Form 990), contributors
TIP include individuals, fiduciaries, partnerships,
corporations, associations, trusts, and exempt
organizations. For organizations described in section 170(b)(1)
(A)(iv) or (vi) or section 509(a)(2), contributors also include
governmental units.
Item K. Form of Organization
Check the box describing the organization's legal entity form or
status under state law in its state of legal domicile. Legal entity
forms include corporations, trusts, unincorporated associations,
2022 Instructions for Form 990-EZ
-9-
Reporting line 1 amounts in accordance with ASC 958 is
generally acceptable (though not required) for Forms 990 and
990-EZ purposes, but the value of donated services or use of
materials, equipment, or facilities may not be reported. However,
state law may require it. An organization that receives a grant to
be paid in future years should, according to ASC 958, report the
grant's present value on line 1. Accruals of present value
increments to the unpaid grant should also be reported on line 1
in future years.
and other types of entities (for example, partnerships and limited
liability companies (LLCs)).
Section 527 political organizations have different gross
receipts thresholds for Form 990-EZ filing, and aren’t
CAUTION required to submit Form 990-N. See Section 527
political organizations, earlier, for more information.
!
Section 501(c)(7) and 501(c)(15) organizations use
different definitions of gross receipts to determine
CAUTION whether they qualify for tax exemption for the year.
Appendix C defines gross receipts for the purpose of
determining the exempt status of organizations described in
sections 501(c)(7) and 501(c)(15). Do not use the definition of
gross receipts in Appendix C to determine whether the
organization's gross receipts are normally $50,000 or less.
DRAFT AS OF
September 20, 2022
!
The organization must report any contributions of
conservation easements and other qualified conservation
contributions consistently with how it reports revenue from such
contributions in its books, records, and financial statements.
Report assets contributed to the organization by another
entity in the course of the entity’s liquidation, dissolution, or
termination.
Item L. Determining Gross Receipts
Add lines 5b, 6c, and 7b to line 9 to determine gross receipts.
See Appendix B and Appendix C, later, for a discussion of gross
receipts.
Do not net losses from uncollectible pledges, refunds of
contributions and service revenue, or reversal of grant expenses
on line 1. Rather, report any such items as Other changes in net
assets or fund balances on Part I, line 20, and explain in
Schedule O (Form 990).
Only those organizations with gross receipts of less than
$200,000 and total assets of less than $500,000 at the end of
the tax year can use Form 990-EZ. If the organization doesn’t
meet these requirements, it must file Form 990, unless excepted
under General Instructions B, earlier.
!
CAUTION
A1. Contributions can arise from fundraising events when
an excess payment is received for items offered.
Fundraising activities relate to soliciting and receiving
contributions. However, fundraising activities such as dinners,
door-to-door sales of merchandise, carnivals, and bingo games
can produce both contributions and revenue. Report as a
contribution, both on line 1 and on line 6b (within the
parentheses), any amount received through such a fundraising
event that is greater than the FMV (retail value) of the
merchandise or services furnished by the organization to the
contributor. Report all gross income from gaming activities on
line 6a.
This situation usually occurs when organizations seek
support from the public through solicitation programs that are in
part fundraising events or activities and are in part solicitations
for contributions. The primary purpose of such solicitations is to
receive contributions and not to sell the merchandise at its retail
value, even though this might produce a profit.
Do not use the definition of gross receipts for section
501(c)(7) or 501(c)(15) exemption purposes (discussed
in Appendix C) to determine the amount to enter here.
Part I. Revenue, Expenses, and
Changes in Net Assets or Fund
Balances
All organizations filing Form 990-EZ with the IRS or any state
must complete Part I. Some states that accept Form 990-EZ in
place of their own forms may require additional information. See
Appendix G, later.
Check the box in the heading of Part I if Schedule O (Form
990) contains any information pertaining to this part.
Neither Form 5500 nor Department of Labor (DOL) Forms
LM-2 or LM-3, Labor Organization Annual Report, should be
substituted for Form 990-EZ, lines 1 through 17.
Example. An organization holds a dinner, charging $400
per person for the meal. The dinner has a retail value of $160. A
person who purchases a ticket is really purchasing the dinner for
$160 and making a contribution of $240. The contribution of
$240, which is the difference between the buyer's payment and
the retail value of the dinner, is reported on line 1 and again on
line 6b (within the parentheses). The revenue received ($160
retail value of the dinner) is reported on line 6b. Expenses
directly related to the dinner are reported on line 6c. Fundraising
expenses relating to the contribution of $240 are reported on
lines 12 through 16.
If a contributor gives more than $160, that person would be
making a contribution of the difference between the dinner's
retail value of $160 and the amount actually given. Rev. Rul.
67-246, 1967-2 C.B. 104, as distinguished from Rev. Rul.
74-348 1974-2 C.B. 80, explains this principle in detail. See also
the instructions for line 6, later, and Pub. 526, Charitable
Contributions.
Line 1. Contributions, Gifts, Grants, and Similar
Amounts Received
A. What Is Included on Line 1?
• Report amounts received as voluntary contributions; for
•
•
•
example, payments, or the part of any payment, for which
the payer (donor) doesn’t receive fair market value (FMV)
from the recipient (donee) organization. Contributions are
reported on line 1 regardless of whether they are deductible
by the contributor.
Enter the gross amounts of contributions, gifts, grants, and
bequests that the organization received from individuals,
trusts, corporations, estates, affiliates, foundations, public
charities, and other exempt organizations, or raised by an
outside professional fundraiser.
Report the value of noncash contributions at the time of the
donation. For example, report the gross value of a donated
car as of the time the car was received as a donation.
Report all related expenses on lines 12 through 16. Enter on
line 13 professional fundraising fees relating to the gross
amounts of contributions collected in the charity's name by
fundraisers.
At the time of any solicitation or payment, organizations
that are eligible to receive tax-deductible contributions
CAUTION should advise patrons of the amount deductible for
federal tax purposes. See Pub. 1771, Charitable Contributions
Substantiation and Disclosure Requirements.
!
A2. Contributions can arise from fundraising events when
items of only nominal or insubstantial value are given or
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2022 Instructions for Form 990-EZ
• A payment by a governmental agency to an organization to
offered. If an organization offers goods or services of only
nominal or insubstantial value through a fundraising event, or
distributes free, unordered, low-cost items to patrons, report the
entire amount received for such benefits as a contribution on
line 1. See also the instruction for Line 6b. B1, later, regarding
nominal or insubstantial value. Report all related expenses on
lines 12 through 16.
Benefits have a nominal or insubstantial value if the
organization informs patrons how much of their payment is a
deductible contribution, and either:
provide job training and placement for disabled individuals is
a contribution reported on line 1. A payment by a
governmental agency to the same organization to operate
the agency's internal mail delivery system is program
service revenue reported on line 2.
The Coronavirus Aid, Relief, and Economic Security Act
TIP (CARES Act) established the Paycheck Protection
DRAFT AS OF
September 20, 2022
Program (PPP) to provide loans to small businesses as
a direct incentive to keep their workers on the payroll. The loans
are forgiven if all employee retention criteria are met and the
funds are used for eligible expenses. Amounts of PPP loans that
are forgiven may be reported on line 1 as contributions from a
governmental unit in the tax year that the amounts are forgiven
or such other time as provided in Rev. Proc. 2021-48, 2021-49
I.R.B. 835.
1. The FMV of all of the benefits received in connection with
the payment isn’t more than 2% of the payment or $117,
whichever is less; or
2. The payment is $58.50 or more and the only benefits
received in connection with the payment are token items
(bookmarks, calendars, key chains, mugs, posters, T-shirts,
etc.) bearing the organization's name or logo. The cost to
the organization (as opposed to FMV) of all benefits
received by a donor must be, in the aggregate, $11.70 or
less.
A6. Contributions received through other fundraising organization. Contributions received indirectly from the public
through solicitation campaigns of federated fundraising agencies
(United Way) are included on line 1.
A7. Contributions received from associated organizations.
Include on line 1 amounts contributed by other organizations
closely associated with the filing organization. This includes
contributions received from a parent organization, subordinate,
or another organization having the same parent.
A3. Contributions in the form of membership dues. Include
on line 1 membership dues and assessments to the extent they
are contributions and not payments for benefits received. See
the instructions for Line 3. C1, later.
A4. Grants equivalent to contributions. Grants made to
encourage an organization receiving the grant to carry on
programs or activities that further the grant recipient's exempt
purposes are grants that are equivalent to contributions. Report
them on line 1. The grantor can specify which of the recipient's
activities the grant may be used for, such as an adoption
program or a disaster relief project.
A grant is still equivalent to a contribution if the grant recipient
performs a service, or produces a work product, that benefits the
grantor incidentally, but see the instructions for Line 1. B1, later.
A8. Contributions from a commercial co-venture. Include
amounts contributed by a commercial co-venture on line 1.
These contributions are amounts received by the organization
for allowing an outside organization (donor) or individual to use
the recipient organization's name in a sales promotion
campaign, such as where the outside organization agrees to
contribute 2% of all sales proceeds to the organization.
B. What Isn’t Included on Line 1?
B1. Grants that are payments for services are not contributions. A grant is a payment for services, and not a contribution,
when the terms of the grant provide the grantor with a specific
service, facility, or product, rather than providing a benefit to the
general public or that part of the public served by the grant
recipient. The recipient organization would report such a grant
as income on line 2 (program service revenue).
A5. Contributions or grants from governmental units.
Whether a payment from a governmental unit is labeled a “grant”
or a “contract” doesn’t determine whether the payment should
be reported on line 1. Rather, a grant or other payment from a
governmental unit is treated as a grant equivalent to a
contribution if its primary purpose is to enable the recipient to
provide a service to, or maintain a facility for, the direct benefit of
the public rather than to serve the direct and immediate needs of
the grantor (even if the public pays part of the expense of
providing the service or facility). See the instructions for Line 2.
D, later.
The following are examples of governmental grants and other
payments that are treated as contributions and reported on
line 1.
• Payments by a governmental unit for the construction or
maintenance of library or museum facilities open to the
public.
• Payments by a governmental unit to nursing homes to
provide health care to their residents (but not Medicare,
Medicaid, and other similar payments on behalf of specific
individuals under the line 2 instructions).
• Payments by a governmental unit to child placement or child
guidance organizations under government programs to
better serve children in the community.
B2. Donations of services or use of property. Do not include
the value of services donated to the organization (such as the
value of donated advertising space, broadcast air time (including
donated public service announcements), or discounts on
services), or of the free use of property (materials, equipment, or
facilities) as contributions on line 1. However, for the optional
reporting of those amounts, see the instructions for donated
services in Part III, later.
B3. Unreimbursed expenses. Any unreimbursed expenses of
officers, employees, or volunteers don’t belong on Form 990-EZ.
See the explanations of charitable contributions and employee
business expenses in Pub. 526, and Pub. 463, Travel, Gift, and
Car Expenses.
B4. Section 501(c)(9), (17), and (18) organizations. Section
501(c)(9) organizations provide participants with life, sick,
accident, or other similar benefits. Section 501(c)(17)
organizations provide participants with supplemental
unemployment benefits, and sickness and accident benefits
subordinate to supplemental unemployment benefits. Section
501(c)(18) organizations provide participants with pension(s)
and similar benefits. When such an organization receives
payments from participants, or their employers, to provide these
benefits, report the payments on line 2 as program service
revenue, rather than on line 1 as contributions.
The following examples illustrate the distinction between
government payments reportable on lines 1 and 2.
• A payment by a governmental agency to a medical clinic to
provide vaccinations to the general public is a contribution
reported on line 1. A payment by a governmental agency to
a medical clinic to provide vaccinations to employees of the
agency is program service revenue reported on line 2.
2022 Instructions for Form 990-EZ
-11-
charges both members and nonmembers for the use of its tennis
courts and golf course.
C. How To Value Noncash Contributions
Report noncash contributions on line 1 at FMV. If FMV can’t be
readily determined, use an appraised or estimated value. See
also the Instructions for Schedule B (Form 990), Part II.
D. Government Fees and Contracts
Program service revenue includes income earned by the
organization for providing a government agency with a service,
facility, or product that benefited that government agency
directly rather than benefiting the public as a whole. See the
instructions for Line 1. A5, earlier, for reporting guidelines when
payments are received from a government agency for providing
a service, facility, or product for the primary benefit of the
general public.
D. Schedule of Contributors
Attach Schedule B (Form 990), if required. See the instructions
for Item H, earlier.
DRAFT AS OF
September 20, 2022
The information on Form 1099-K, Payment Card and
TIP Third Party Network Transactions, may be useful in
helping you to prepare your return but you aren’t
required to report the information on any specific line of your
return. An organization that receives a Form 1099-K reporting a
gross amount of payment card or third party network payments
received in the tax year should consider these amounts when
reporting contributions and revenue on lines 1 through 8,
according to the instructions for preparing the return. You should
retain all Forms 1099-K with your other records.
Line 3. Membership Dues and Assessments
Enter members' and affiliates' dues and assessments that aren’t
contributions.
A. What Is Included on Line 3?
A1. Dues and assessments received that compare reasonably with the benefits of membership. When the
organization receives dues and assessments the value of which
compares reasonably with the value of benefits provided to
members (whether or not the membership benefits are used by
the members), report such dues and assessments on line 3.
Section 501(c)(3) organizations must figure the amount
TIP of contributions according to the above instructions in
preparing the support schedule in Part II or III of
Schedule A (Form 990).
Line 2. Program Service Revenue Including
Government Fees and Contracts
A2. Organizations that generally match dues and benefits.
Organizations described in section 501(c)(5), (6), or (7)
generally provide benefits with a reasonable relationship to
dues, although benefits to members can be indirect.
Enter the total program service revenue (exempt function
income). Program services are primarily those that form the
basis of an organization's exemption from tax.
B. Examples of Membership Benefits
A. Examples
These include subscriptions to publications; newsletters (other
than one about the organization's activities only); free or
reduced-rate admissions to events sponsored by the
organization; use of the organization's facilities; and discounts
on articles or services that both members and nonmembers can
buy. In figuring the value of membership benefits, disregard such
intangible benefits as the right to attend meetings, vote, or hold
office in the organization, and the distinction of being a member
of the organization.
A clinic would include on line 2 all of its charges for medical
services (whether to be paid directly by the patients or through
Medicare, Medicaid, or other third-party reimbursement),
laboratory fees, and related charges for services.
Program service revenue also includes tuition received by a
school; revenue from admissions to a concert or other
performing arts event or to a museum; royalties received as
author of an educational publication distributed by a commercial
publisher; payments received by a section 501(c)(9)
organization from participants or employers of participants for
health and welfare benefits coverage; and registration fees
received in connection with a meeting or convention.
C. What Isn’t Included on Line 3?
C1. Dues or assessments received that exceed the value of
available membership benefits. Dues received by an
organization, to the extent they exceed the monetary value of the
membership benefits available to the dues payer, are a
contribution that should be reported on line 1.
B. Program-Related Investment Income
Program service revenue also includes income from
program-related investments. These investments are made
primarily to accomplish an exempt purpose of the investing
organization rather than to produce income. Examples of
program-related investments are scholarship loans and
low-interest loans to charitable organizations, indigents, or
victims of a disaster. See also the instructions for line 4.
C2. Dues received primarily for the organization's support.
If a member pays dues primarily to support the organization's
activities, and not to obtain benefits of more than nominal or
insubstantial monetary value, those dues are a contribution to
the organization includible on line 1.
Example. M is an organization whose primary purpose is to
support the local symphony orchestra. Members have the
privilege of purchasing subscriptions to the symphony's annual
concert series before they go on sale to the general public, but
must pay the same price as any other member of the public.
They are also entitled to attend a number of rehearsals each
season without charge. Under these circumstances, M's receipts
from members are contributions reported on line 1.
Rental income received from an exempt function is another
example of program-related investment income (below-market
rents from housing leased to low-income persons). For purposes
of this return, report all rental income from an affiliated
organization on line 2.
C. Unrelated Trade or Business Activities
Unrelated trade or business activities (other than fundraising
activities that aren’t regularly carried on) that generate fees for
services can also be program service activities. A social club, for
example, should report as program service revenue the fees it
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2022 Instructions for Form 990-EZ
Line 4. Investment Income
A. What Is Included on Line 4?
Lines 5a Through 5c. Gains (or Losses) From
Sale of Assets Other Than Inventory
A1. Interest on savings and temporary cash investments.
Include the amount of interest received from interest-bearing
checking accounts, savings, and temporary cash investments,
such as money market funds, commercial paper, certificates of
deposit, and U.S. Treasury bills or other governmental
obligations that mature in less than 1 year. So-called dividends
or earnings received from mutual savings banks, money market
funds, etc., are actually interest and should be included on this
line.
A. What Is Included on Line 5?
Report on line 5a all sales of securities and sales of all other
types of investments (real estate, royalty interests, or partnership
interests), as well as sales of all other noninventory assets
(program-related investments and fixed assets used by the
organization in its related and unrelated activities). Also, report
capital gains dividends; the organization’s share of capital gains
and losses from a joint venture, LLC, or other entity treated as a
partnership for federal tax purposes; and capital gains
distributions from trusts.
DRAFT AS OF
September 20, 2022
A2. Dividends and interest from securities. Include
dividends from equity securities (stocks), and interest income
from debt securities and notes and loans receivable, other than
program-related investments. Include amounts received from
payments on securities loans, as defined in section 512(a)(5).
Total the cost or other basis (less depreciation) and selling
expenses and enter the result on line 5b. On line 5c, enter the
net gain or loss.
A3. Gross rents. Include gross rental income received during
the year from investment property and any other real property
rented by the organization (other than program-related
investments reported on line 2).
For reporting sales of securities on Form 990-EZ, the
organization can use the more convenient way to figure the
organization's gain or loss from sales of securities by subtracting
from the sales price the average-cost basis of the particular
security sold. However, the average-cost basis isn’t used to
figure the gain or loss from sales of securities reportable on
Form 990-T.
A4. Other investment income. Include, for example, the
organization’s share of investment income from a joint venture,
LLC, or other entity treated as a partnership for federal tax
purposes. Also, include royalties received by the organization
from licensing the ongoing use of its property to others (other
than royalties generated as part of the organization's exempt
function, such as royalties received from a publisher for an
educational work authored by the organization, which should be
reported on line 2 as program service revenue). Typically,
royalties are received for the use of intellectual property
(copyrights, patents, and trademarks). Royalties also include
payments to the owner of property for the right to exploit natural
resources on the property, such as oil, natural gas, or minerals.
Do not deduct investment management fees from the amount
of investment income reported on this line, but report these fees
on line 13.
B. What Isn’t Included on Line 5?
Do not include on line 5 any unrealized gains or losses on
securities that are carried in the books of account at market
value. See the instructions for line 20.
C. Books and Records
The organization should maintain books and records to
substantiate information regarding any securities or other assets
sold for which market quotations weren’t published or weren’t
readily available. The recorded information should include:
• A description of the asset;
• Date acquired;
• Whether acquired by donation or purchase;
• Date sold and to whom sold;
• Gross sales price;
• Cost, other basis, or if donated, value at time acquired;
• Expense of sale and cost of improvements made after
acquisition; and
• Depreciation since acquisition, if depreciable property.
B. What Isn’t Included on Line 4?
B1. Capital gains dividends and unrealized gains and losses. Do not include on this line any capital gains dividends.
They are reported on line 5. Also, don’t include unrealized gains
and losses on investments carried at market value. See the
instructions for line 20.
B2. Exempt function revenue (program service). Do not
include on line 4 amounts that represent income from an exempt
function (program service). Report these amounts on line 2 as
program service revenue. Report expenses related to this
income on lines 12 through 16.
Line 6a. Gaming
Report gross income from gaming on line 6a if the organization
conducted directly, or through a promoter, any amount of
gaming during the year. Report the gross income from all
gaming activities (other than gaming that is incidental to a
fundraising event such as a dinner/dance), whether or not
regularly carried on, on line 6a.
Exempt function rental income. An organization whose
exempt purpose is to provide low-rental housing to persons with
low income receives exempt function income from such rentals.
An organization receives exempt function income if it rents or
sublets rental space to a tenant whose activities are related to
the filing organization's exempt purpose. Report rental income
received in these instances on line 2 and not on line 4. Only for
purposes of completing this return, treat income from renting
property to affiliated exempt organizations as exempt function
income and include that income on line 2 as program service
revenue.
Gaming includes (but isn’t limited to) bingo, pull tabs, instant
bingo (including satellite and progressive bingo), Texas Hold-Em
Poker and other card games, raffles, scratch-offs, charitable
gaming tickets, break-opens, hard cards, banded tickets, jar
tickets, pickle cards, Lucky Seven cards, Nevada Club tickets,
casino nights/Las Vegas nights (other than events not regularly
carried on in which participants can play casino-style games but
the only prizes or auction items provided to participants are
noncash items that were donated to the organization, which are
fundraising events), and coin-operated gambling devices.
Coin-operated gambling devices include slot machines,
electronic video slot or line games, video poker, video blackjack,
video keno, video bingo, video pull tab games, etc.
Other program-related investments. Investment income from
program-related investments should be reported on line 2. See
the line 2 instructions for a discussion of program-related
investments. Gains or losses from the sale of program-related
investment assets are reported on line 5.
2022 Instructions for Form 990-EZ
-13-
Many games of chance are taxable. Income from bingo
games is generally not subject to the tax on unrelated business
income if the games meet the legal definition of bingo. For a
bingo game to meet the legal definition of bingo, wagers must be
placed, winners must be determined, and prizes or other
property must be distributed in the presence of all persons
placing wagers in that game.
B. What Isn’t Included on Line 6b?
A wagering game that doesn’t meet the legal definition of
bingo doesn’t qualify for the exclusion from unrelated business
income, regardless of its name. For example, “instant bingo,” in
which a player buys a pre-packaged bingo card with pull tabs
that the player removes to determine if the player is a winner,
doesn’t qualify. See Pub. 598, Tax on Unrelated Business
Income of Exempt Organizations; Pub. 3079, Tax-Exempt
Organizations and Gaming; and Form 990-T.
B2. Sweepstakes, raffles, and lotteries. Report gross income
from gaming on line 6a. Report as a contribution, on line 1, the
proceeds of solicitation campaigns in which the names of
contributors and other respondents (who weren’t required to
make a minimum payment) are entered in a drawing for prizes.
Where a minimum payment is required for each raffle or
lottery entry and prizes of only nominal or insubstantial value are
awarded, report any amount received as a contribution. Report
the related expenses on lines 12 through 16.
B1. Sales or gifts of goods or services of only nominal or
insubstantial value. If the goods or services offered at the
fundraising event have only nominal or insubstantial value,
include all of the receipts as contributions on line 1 and all of the
related expenses on lines 12 through 16.
DRAFT AS OF
September 20, 2022
Line 6b. Fundraising Events
B3. Activities that generate only contributions aren’t fundraising events. An activity that generates only contributions,
such as a solicitation campaign by mail, isn’t a fundraising event.
Any amount received should be included on line 1 as a
contribution. Related expenses are reportable on lines 12
through 16.
Enter the gross income from all fundraising events and activities,
such as dinners, dances, carnivals, concerts, sports events,
auctions, and door-to-door sales of merchandise.
Fundraising events and activities only incidentally accomplish
an exempt purpose. Their sole or primary purpose is to raise
funds to finance the organization's exempt activities. They don’t
include events or activities that substantially further the
organization's exempt purpose even if they also raise funds.
They don’t include activities regularly carried on. Fundraising
events don’t include gaming, gross income from which is
reported on line 6a.
C. Attach Schedule G (Form 990), Parts II and III
If the organization reports more than $15,000 on line 6a, then it
must complete Schedule G (Form 990), Part III (Gaming). If the
sum of the organization's gross income and contributions from
fundraising events (including the amounts reported on line 6b
and in the parentheses for line 6b) is greater than $15,000, then
it must complete Schedule G (Form 990), Part II (Fundraising
Events). Organizations filing Form 990-EZ aren’t required to
complete Schedule G (Form 990), Part I (Fundraising Activities).
Example. An organization formed to promote and preserve
folk music and related cultural traditions holds an annual folk
music festival featuring concerts, handicraft demonstrations, and
similar activities. Because the festival directly furthers the
organization's exempt purpose, income from ticket sales should
be reported on line 2 as program service revenue.
Fundraising events and activities raise funds by offering
goods or services that have more than a nominal or insubstantial
value (compared to the price charged) for a payment that is
more than the direct cost of those goods or services. See the
instructions for Line 1. A1 and A2, earlier, for a discussion on
contributions reportable on line 1 and revenue reportable on
line 6b.
The fact that tickets, advertising, or solicitation materials refer
to a required payment as a donation or contribution doesn’t
control how these payments should be reported on Form
990-EZ.
The gross income from fundraising events must be reported
in the right-hand column on line 6b without reduction for cash or
noncash prizes, cost of goods sold, compensation, fees, or other
expenses.
Lines 6c and 6d. Direct Expenses and Net
Income or (Loss) From Gaming and Fundraising
Events
Report on line 6c direct expenses related to gaming activities
and direct expenses attributable to the organization's provision
of goods or services from which it derived gross income at a
fundraising event. Do not report fundraising expenses
attributable to contributions reported on line 1. These expenses
are reportable on lines 12 through 16. If an expense is included
on line 6c, don’t report it again on line 7b.
To figure net income or (loss) on line 6d, add lines 6a and 6b,
then subtract line 6c.
Line 7a. Sales of Inventory
Include on line 7a the gross sales (less returns and allowances)
of inventory items, whether the sales activity is an exempt
function or an unrelated trade or business. Inventory items are
goods the organization makes to sell to others, or that it buys for
resale. Include all inventory sales except sales of goods at
fundraising events, which are reportable on line 6. Do not
include on line 7 sales of investments on which the organization
expected to profit by appreciation and sale; report sales of these
investments on line 5.
A. What Is Included on Line 6b?
Gross revenue/contributions. When an organization receives
payments for goods or services offered through a fundraising
event, enter the following.
1. As gross revenue, on line 6b (in the right-hand column), the
retail value of the goods or services.
2. As a contribution, on both line 1 and line 6b (within the
parentheses), any amount received that exceeds the retail
value of the goods or services given.
Line 7b. Cost of Goods Sold
On line 7b, report the cost of goods sold related to sales of such
inventory. The usual items included in cost of goods sold are
direct and indirect labor, materials and supplies consumed,
freight-in, and a proportion of overhead expenses. For purposes
of Part I, the organization may include as cost of donated goods
their FMV at the time of acquisition. Marketing and distribution
expenses aren’t includible in cost of goods sold but are reported
on lines 12 through 16.
Example. At a fundraising event, an organization received
$100 in gross receipts for goods valued at $40. The organization
entered gross revenue of $40 on line 6b and entered a
contribution of $60 on both line 1 and within the parentheses on
line 6b. The contribution was the difference between the gross
revenue of $40 and the gross receipts of $100.
-14-
2022 Instructions for Form 990-EZ
Line 8. Other Revenue
If the individual grantee is related to a grantor or
contributor to the organization, then don’t provide the
CAUTION name of the grantor or contributor. Instead, identify such
persons generically as “grantee” and as “grantor” or
“contributor.”
!
Enter the total income from all sources not covered by lines 1
through 7. Examples of line 8 income are interest on notes
receivable not held as investments or as program-related
investments (defined in the line 2 instructions); interest on loans
to officers, directors, trustees, key employees, and other
employees; and royalties that aren’t investment income or
program service revenue. Describe this income on Schedule O
(Form 990).
If any related organization (see the line 49 instructions for the
definition of “related organization”) received a payment reported
on line 10, then so indicate and specify the purpose of the
payment.
DRAFT AS OF
September 20, 2022
Line 10. Grants and Similar Amounts Paid
Classify activities on this schedule in more detail than by
using broad terms such as charitable, educational, religious, or
scientific. For example, identify payments to affiliates, payments
for nursing services, fellowships, and payments for food, shelter,
or medical services for indigents or disaster victims.
A. What Is Included on Line 10?
Enter the amount of actual grants and similar amounts paid to
individuals and organizations selected by the filing organization.
Include scholarship, fellowship, and research grants to
individuals.
Colleges, universities, and primary and secondary schools
reporting scholarships or other financial assistance can instead
include a statement in Schedule O (Form 990) that (a) groups
each type of financial aid provided, (b) indicates the number of
individuals who received the aid, and (c) specifies the aggregate
dollar amount.
A1. Specific assistance to individuals. Include on this line
the amount of payments to, or for the benefit of, particular clients
or patients, including assistance by others at the organization's
expense.
A2. Payments, voluntary awards, or grants to affiliates.
Include on line 10 certain types of payments to organizations
affiliated with (closely related to) the filing organization. These
payments include predetermined quota support and dues
payments by local organizations to their state or national
organizations.
If an organization gives property other than cash and
measures an award or grant by the property's FMV, also show
on this schedule:
• A description of the property,
• The book value of the property,
• How the book value was determined,
• How the FMV was determined, and
• The date of the gift.
If the organization uses Form 990-EZ for state reporting
purposes, distinguish on Schedule O (Form 990)
CAUTION between payments to affiliates and awards and grants.
See Appendix G, later.
!
Any difference between a property's FMV and book value
should be recorded in the organization's books of account and
on line 20.
B. What Isn’t Included on Line 10?
Line 11. Benefits Paid to or for Members
B1. Administrative expenses. Do not include on this line
expenses made in selecting recipients or monitoring compliance
with the terms of a grant or award. Enter those expenses on
lines 12 through 16.
For an organization that gives benefits to members or
dependents (such as organizations exempt under section 501(c)
(8), (9), or (17)), enter the amounts paid for or paid to obtain
insurance that provides:
• Death, sickness, hospitalization, or disability benefits;
• Unemployment compensation benefits; and
• Other benefits, including patronage dividends paid by
501(c)(12) organizations to their members.
B2. Purchases of goods or services from affiliates. Do not
report the cost of goods or services purchased from affiliates on
line 10. Report these expenses on lines 12 through 16.
B3. Membership dues paid to another organization. Report
membership dues that the organization pays to another
organization (other than an affiliated organization) for general
membership benefits, such as regular services, publications,
and materials, on line 16.
Report on line 12, rather than line 11, the cost of
employment-related benefits (such as health insurance) that the
organization gives its officers and employees.
Line 12. Salaries, Other Compensation, and
Employee Benefits
C. Grantee List on Schedule O (Form 990)
List on Schedule O (Form 990) each grantee organization or
individual to whom the organization made grants (or paid similar
amounts) in excess of $5,000 during the organization's tax year.
For each grantee, list:
• Each class of activity;
• The grantee's name and address (for grantee organizations,
not grantee individuals);
• The amount given (aggregate amount of grants and
payments to or for the benefit of the grantee during the
organization's tax year); and
• The relationship of the grantee (for grants to individuals), if
the relationship is by blood, marriage, adoption, or
employment (including employees’ children), control, or
ownership, to any person or corporation with an interest in
the organization, such as a creator, donor, director, trustee,
officer, key employee, related organization, etc.
2022 Instructions for Form 990-EZ
Enter the total salaries and wages paid to all officers and
employees and payments made to directors and trustees,
including compensation reported on Forms W-2 and 1099.
Include all other forms of income and benefits received from the
organization during the year, such as the employer’s share of
deferrals (for unfunded plans) and contributions the organization
paid to qualified and nonqualified pension and deferred
compensation plans, and the employer's share of contributions
to employee benefit programs (such as insurance, health, and
welfare programs) that aren’t an incidental part of a pension
plan.
Complete Form 5500 if the organization is required to file
TIP it.
Also, include in the total on line 12 the amount of federal,
state, and local payroll taxes for the year that are imposed on the
-15-
acceptable methods for figuring depreciation, see Pub. 946,
How To Depreciate Property.
organization as an employer. This includes the employer's share
of social security and Medicare taxes, federal unemployment tax
(FUTA), state unemployment compensation tax, and other state
and local payroll taxes. Taxes withheld from employees' salaries
and paid over to the various governmental units (such as federal
and state income taxes and the employees' share of social
security and Medicare taxes) are part of the employees' salaries
included on line 12. Report expenses paid or incurred for
employee events such as a picnic or holiday party on this line.
For more information, see Pub. 15 (Circular E), Employer's Tax
Guide.
Report on line 14 or 16 rental expenses for rental income
reported on lines 2 and 4. Do not decrease rental expenses
reported on line 14 or 16 by any rental income received from
renting or subletting rented space. See the instructions for lines
2 and 4 to determine if the income is reportable as exempt
function income or investment income.
DRAFT AS OF
September 20, 2022
Line 15. Printing, Publications, Postage, and
Shipping
Compensation for line 12 is reported based on the
Enter the printing and related costs of producing the filing
organization's own newsletters, leaflets, films, and other
informational materials, as well as the cost of outside mailing
services on line 15. Also, include the cost of any purchased
publications as well as postage and shipping costs not
reportable on line 5b, 6c, or 7b. Do not include any expenses,
such as salaries, for which a separate line is provided.
TIP accounting method and tax year used by the
organization, whereas compensation for Part IV, List of
Officers, Directors, Trustees, and Key Employees, and Part VI,
lines 50 and 51 (compensation of highest compensated
employees and independent contractors), is reported for the
calendar year ending with or within the organization’s fiscal year.
Line 13. Professional Fees and Other Payments
to Independent Contractors
Line 16. Other Expenses
Report expenses here that aren’t reportable on lines 10 through
15. Include here such expenses as penalties, fines, and
judgments; unrelated business income taxes; insurance,
interest, depreciation, and real estate taxes not reported as
occupancy expenses; travel and transportation costs; and
expenses for conferences, conventions, and meetings. Provide
a description of these expenses on Schedule O (Form 990). Do
not report on this line payments made by organizations exempt
under section 501(c)(8), (9), or (17) to obtain insurance benefits
for members. Report those expenses on line 11.
Enter the total amount of legal, accounting, auditing, other
professional fees (such as fees for fundraising or investment
services), and related expenses charged by outside firms and
individuals who aren’t employees of the organization.
Do not include any penalties, fines, or judgments imposed on
the organization as a result of legal proceedings; report and
identify those expenses on line 16. Report on line 12 fees paid to
directors and trustees. Also, report on line 12 compensation to
employees that provide fundraising, legal, accounting, or other
professional services as part of their employment. Report broker
fees/commissions as sales expenses on line 5b.
Some states that accept Form 990-EZ in satisfaction of their
filing requirements may require that certain types of
miscellaneous expenses be itemized. See Appendix G, later.
If the organization is able to distinguish between fees paid for
independent contractor services and expense payments or
reimbursements to the contractor(s), report the fees paid for
services on line 13 and the expense payments or
reimbursements on lines 14 through 16, as applicable. If the
organization is unable to distinguish between service fees and
expense payments or reimbursements to independent
contractors, report all such amounts on line 13.
Line 18. Excess or (Deficit) for the Year
Enter the difference between lines 9 and 17. If line 17 is more
than line 9, enter the difference in parentheses or as a negative
number with a minus sign.
Line 19. Net Assets or Fund Balances at
Beginning of Year
If your organization pays $600 or more to persons not
Enter on line 19 the end-of-year amount from the balance sheet
on the prior-year return.
TIP treated as employees, you may be required to file Form
1099-NEC, Nonemployee Compensation, or Form
1099-MISC, Miscellaneous Income. For more information, see
the Instructions for Form 1099-NEC and Form 1099-MISC.
Line 20. Other Changes in Net Assets or Fund
Balances
Line 14. Occupancy, Rent, Utilities, and
Maintenance
Explain in Schedule O (Form 990) any changes in net assets or
fund balances between the beginning and end of the
organization's tax year that aren’t accounted for by the amount
on line 18. Include items here such as:
• Adjustments of earlier years' activity (such as losses on
uncollectible pledges, refunds of contributions and program
service revenue, and reversal of grant expenses);
• Unrealized gains and losses on investments carried at
market value; and
• Any difference between FMV and book value of property
given as an award or grant.
Enter the total amount paid or incurred for the use of office space
or other facilities, including rent; mortgage interest; heat, light,
power, and other utilities; outside janitorial services; real estate
taxes and property insurance attributable to rental property; and
similar expenses.
These expenses relate to real property actually occupied by
the organization, whether as tenant or owner, or used in the
conduct of exempt functions (such as low-income rental
housing). Report on line 16 expenses relating to real property
used for investment purposes. If the organization occupies part
of the property and leases a part to others, then expenses must
be reasonably allocated between occupancy-related and
investment-related expenses, and reported accordingly on lines
14 and 16.
See General Instructions C regarding the reporting of a
section 481(a) adjustment to conform to ASC 958.
Part II. Balance Sheets
Every organization that files Form 990-EZ must complete
columns (A) and (B) of Part II of the return and can’t submit a
substitute balance sheet. Failure to complete Part II can result in
penalties for filing an incomplete return. If there is no amount to
If the organization records depreciation on property it
occupies, enter the total for the year. For an explanation of
-16-
2022 Instructions for Form 990-EZ
report in column (A), Beginning of year, enter a zero (“-0-”) in
that column.
Step
1
2
Check the box in the heading of Part II if Schedule O (Form
990) contains any information pertaining to this part.
Some states require more information. See Appendix G for
more information about completing a Form 990-EZ to be filed
with any state or local government agency.
Action
Enter the organization's primary exempt purpose.
All organizations must describe their program service
accomplishments for each of their three largest program
services (as measured by total expenses incurred).
• Describe program service accomplishments
through measurements such as clients served,
days of care, number of sessions or events held, or
publications issued.
• Describe the activity's objective, for both this time
period and the longer-term goal, if the output is
intangible, such as in a research activity.
• Give reasonable estimates for any statistical
information if exact figures aren’t readily available.
Indicate that this information is estimated.
• Be clear, concise, and complete in the description.
Avoid attaching brochures, newsletters, newspaper
articles about the organization, etc.
Public interest law firm. A public interest law firm
exempt under section 501(c)(3) or 501(c)(4) must list in
Schedule O (Form 990) all the cases in litigation or that
have been litigated during the year. For each case,
describe the matter in dispute and explain how the
litigation will benefit the public generally. Also, enter the
fees sought and recovered in each case. See Rev. Proc.
92-59, 1992-2 C.B. 411.
Expenses and grants. For each program service
reported on lines 28 through 31, section 501(c)(3) and
501(c)(4) organizations must enter, in the Expenses
column, the total expenses included on line 17 for that
program service. These organizations must also enter, in
the Grants space for each program service, the total
grants and similar amounts reported on line 10 for that
program service. If the amount of grants entered
includes foreign grants, check the box to the left of the
Expenses column. For all other organizations, entering
expenses and grants and checking the foreign grants
box is optional.
Describe in Schedule O (Form 990) the organization's
other program services.
• The detailed information required for the three
largest services isn’t necessary for this schedule.
• However, section 501(c)(3) and 501(c)(4)
organizations must show the expenses and grants
attributable to their program services.
The organization can report the amount of any donated
services, or any donated use of materials, equipment, or
facilities it received or utilized for a specific program
service.
• Disclose the applicable amounts of any donated
services, etc., on the lines for the narrative
description of the appropriate program service.
• Do not include these amounts in the expense
column in Part III.
• See the instructions for Line 1. B2, earlier,
regarding donations of services or use of property.
DRAFT AS OF
September 20, 2022
Line 22. Cash, Savings, and Investments
Include all interest and non-interest bearing accounts (petty cash
funds, checking accounts, savings accounts, money market
funds, commercial paper, certificates of deposit, U.S. Treasury
bills, and other government obligations). Also, include the book
value of securities held as investments, and all other investment
holdings including land and buildings held for investment. Report
the income from these investments on line 4; report income from
program-related investments on line 2.
Line 23. Land and Buildings
Enter the book value (cost or other basis less accumulated
depreciation) of all land and buildings owned by the organization
and not held for investment.
3
Line 24. Other Assets
Enter the total of other assets such as accounts receivable,
inventories, prepaid expenses, and the organization’s share of
assets in any joint ventures, LLCs, and other entities treated as a
partnership for federal tax purposes. Also, include a description
of the assets in Schedule O (Form 990).
4
Line 25. Total Assets
Enter amount of total assets. If the end-of-year total assets
entered in column (B) are $500,000 or more, Form 990 must be
filed instead of Form 990-EZ.
Line 26. Total Liabilities
Liabilities include such items as accounts payable, grants
payable, mortgages or other loans payable, and deferred
revenue (revenue received but not yet earned). Provide a
description of these liabilities on Schedule O (Form 990).
5
Line 27. Net Assets or Fund Balances
Subtract line 26 (total liabilities) from line 25 (total assets) to
determine net assets. Enter this net asset amount on line 27.
The amount entered in column (B) must agree with the net asset
or fund balance amount on line 21.
States that accept Form 990-EZ as their basic report form
may require a separate statement of changes in net assets. See
Appendix G.
6
Part III. Statement of Program Service
Accomplishments
Check the box in the heading of Part III if Schedule O (Form 990)
contains any information relating to this part.
A program service is a major (usually ongoing) objective of an
organization, such as adoptions, recreation for the elderly,
rehabilitation, or publication of journals or newsletters.
2022 Instructions for Form 990-EZ
-17-
Part IV. List of Officers, Directors,
Trustees, and Key Employees
or held by a deferred compensation trust, that is established,
sponsored, or maintained by the organization.
Common paymaster or payroll/reporting agent. Treat
amounts paid by a common paymaster (as defined in
Regulations section 31.3121(s)-1(b)(2)) or a payroll or reporting
agent (which is or should be appointed by the organization on
Form 2678, Employer/Payer Appointment of Agent, or
authorized by the organization on Form 8655, Reporting Agent
Authorization, to perform certain employment tax services on
behalf of the organization) for services performed for the
organization as if the organization had paid such amounts
directly, and report these amounts in the appropriate columns in
Part IV.
Check the box in the heading of Part IV if Schedule O (Form
990) contains any information relating to this part.
List each person who was an officer, director, trustee, or key
employee (defined below) of the organization at any time during
the organization's tax year, even if they didn’t receive any
compensation from the organization.
DRAFT AS OF
September 20, 2022
Officer. An officer is a person elected or appointed to manage
the organization's daily operations, such as a president, vice
president, secretary, or treasurer. The officers of an organization
are determined by reference to its organizing document, bylaws,
or resolutions of its governing body, but at a minimum include
those officers required by applicable state law.
Column (a)
For each person required to be listed, enter the name in the top
of each row and the person's title or position with the
organization in the bottom of the row. If the person had more
than one title or position, list all (for instance, president and
director). List persons in the following order: individual trustees
or directors, institutional trustees, officers, and key employees.
Director or trustee. A director or trustee is a member of the
organization's governing body, but only if the member has voting
rights. The governing body is the group of persons authorized
under state law to make governance decisions on behalf of the
organization and its shareholders or members, if applicable. The
governing body is, generally speaking, the board of directors
(sometimes referred to as board of trustees) of a corporation or
association, or the board of trustees of a trust (sometimes
referred to simply as the trustees, or trustee, if only one trustee).
Up to 11 persons can be reported on the Form 990-EZ, Part
IV, table. If more space is needed to enter additional persons,
use as many duplicates of the Part IV table as are needed.
Column (b)
Key employee. A key employee is any person having
responsibilities or powers similar to those of officers, directors,
or trustees. The term includes the chief management and
administrative officials of an organization (such as an executive
director or chancellor). A chief financial officer and the officer in
charge of the administration or program operations are both key
employees if they have the authority to control the organization's
activities, its finances, or both.
Enter a zero (“-0-”) in columns (c), (d), and (e) if no reportable
compensation or other compensation was paid during the year
or deferred for payment to a future year.
Enter all forms of cash and noncash compensation received
by each listed officer, director, trustee, and key employee,
whether paid currently or deferred.
If the organization pays any other person, such as a
management services company, for the services provided by
any of the organization's officers, or an employee leasing
company, or a professional employer organization (whether or
not certified under the new Voluntary Certification Program for
Professional Employer Organizations at IRS.gov/For-Tax-Pros/
Basic-Tools/Certified-Professional-Employer-Organization),
directors, trustees, or key employees, report the compensation
and other items in Part IV as if the organization had paid the
officers, directors, trustees, and key employees directly.
A failure to fully complete Part IV can subject both the
organization and the individuals responsible for such failure to
penalties for filing an incomplete return. See General Instructions
G, earlier. In particular, entering the phrase on Part IV,
“Information available upon request,” or a similar phrase, isn’t
acceptable.
Form 941, Employer’s Quarterly Federal Tax Return, must be
filed to report income tax withholding and social security and
Medicare taxes. The organization must also file Form 940,
Employer's Annual Federal Unemployment (FUTA) Tax Return,
to report federal unemployment tax, unless the organization isn’t
subject to these taxes. See Pub. 15 (Circular E) for more
information.
Amounts paid or accrued by certain other organizations
treated as paid or accrued by the filing organization. Treat
as paid, accrued, or held directly by the organization any
amounts paid or accrued under a deferred compensation plan,
For each person listed in column (a), report an estimate of the
average hours per week the person devoted to the organization
during the year. Entry of a specific number of hours per week is
required for a complete answer. Enter “-0-” if applicable. Do not
include statements such as “as needed,” “as required,” or “40+.”
If the average is less than 1 hour per week, then the organization
can enter a decimal rounded to the nearest tenth (for example,
0.2 hours per week).
Columns (c)–(e)
All compensation reporting is based on the calendar year ending
with or within the organization's tax year. For example, if a
fiscal-year organization's tax year is the 12-month period
beginning July 1, 2022, and ending June 30, 2023, the
organization must report compensation for the calendar year
ending December 31, 2022.
Note. Do not report the same item of compensation in more
than one column of Part IV for the calendar year ending with or
within the tax year.
Column (c)
Enter the person's reportable compensation. “Reportable
compensation” is:
• For officers and other key employees—amounts required to
be reported in box 1 or 5 of Form W-2 (whichever amount is
greater);
• For directors and individual trustees—amounts required to
be reported in box 1 of Form 1099-NEC and/or box 6 of
Form 1099-MISC for director services and other
independent contractor services to the organization, plus
box 1 or 5 of Form W-2 (whichever amount is greater) if also
compensated as an officer or employee; and
• For institutional trustees (such as banks or trust
companies)—fees for services paid under a contractual
agreement or statutory entitlement.
If the organization didn’t file a Form 1099-NEC or Form
1099-MISC because the amounts paid were below the threshold
reporting requirement, then include and report the amount
actually paid.
-18-
2022 Instructions for Form 990-EZ
automobiles, or other assets owned or leased by the
organization (or provided for the organization's use without
charge), as well as any other taxable and nontaxable fringe
benefits. See Pub. 525, Taxable and Nontaxable Income, for
more information.
$10,000-per-item exception. The organization may exclude
from reporting in column (e) any item of “other compensation”
given to a person listed in Part IV if its total value is less than
$10,000 for the calendar year ending with or within the
organization's tax year.
Corporate officers are considered employees for
TIP purposes of Form W-2 reporting, unless they perform no
services as officers, or perform only minor services and
neither receive nor are entitled to receive, directly or indirectly,
any compensation. Corporate directors are considered
independent contractors, not employees, and director
compensation, if any, is generally required to be reported on
Form 1099-NEC. See Regulations section 31.3401(c)-1(f).
DRAFT AS OF
September 20, 2022
For employees, such as certain members of the clergy and
religious workers who aren’t subject to social security and
Medicare taxes as employees, box 5 of Form W-2 can be zero or
less than the amount in Form W-2, box 1. In those cases, the
amount required to be reported in box 1 of Form W-2 must be
reported as reportable compensation in column (c).
Short Year and Final Returns
For a short-year return in which there is no calendar year that
ends with or within the short year, leave columns (c), (d), and (e)
blank and don’t report any highest compensated employees or
highest compensated independent contractors (because such
persons are determined according to compensation received in
the calendar year ending with or within the tax year for which the
return is filed), unless the return is a final return. If the return is a
final return, report in column (c) the compensation that is
reportable compensation on Forms W-2 and Forms 1099 for the
short year, from both the filing organization and related
organizations, whether or not Forms W-2 or Forms 1099 have
been filed yet to report such compensation. Report health
benefits, contributions to employee benefit plans, and other
deferred compensation for the short year in column (d), and
other compensation for the short year in column (e).
Column (d)
Report the following deferred compensation and benefits.
1. Tax-deferred contributions by the employer to a qualified
defined-contribution retirement plan.
2. The annual increase or decrease in actuarial value of a
qualified defined benefit plan, whether or not funded or
vested.
3. The value of health benefits provided by the employer, or
paid by the employee with pre-tax dollars, that isn’t included
in reportable compensation, including the value of:
• Payments of health benefit plan premiums,
• Medical reimbursement and flexible spending
programs, and
• Health coverage (rather than actual benefits paid)
provided by an employer's self-insured or self-funded
arrangement.
Health benefits include medical, dental, optical, drug,
and medical equipment benefits. They don’t include
disability or long-term care insurance premiums or allocated
benefits for this purpose.
Part V. Other Information
Required Statements
1. Schedule A (Form 990). Section 501(c)(3) organizations
must complete and attach Schedule A (Form 990).
2. Statement regarding personal benefit contract. If, in
connection with a transfer to or for the use of the
organization, the organization directly or indirectly pays
premiums on any personal benefit contract, or there is an
understanding or expectation that any person will directly or
indirectly pay such premiums, the organization must do the
following.
• Attach a statement describing the organization's
involvement with the personal benefit contract(s).
• Report on Form 8870, Information Return for Transfers
Associated With Certain Personal Benefit Contracts,
the premiums that the organization paid, and the
premiums paid by others but treated as paid by the
organization.
• Report and pay an excise tax, equal to premiums paid,
on Form 4720, Return of Certain Excise Taxes Under
Chapters 41 and 42 of the Internal Revenue Code.
4. Tax-deferred contributions by the employer and employee
to a funded nonqualified defined contribution plan, and
deferrals under an unfunded nonqualified defined
contribution plan, whether or not such plans are vested or
subject to a substantial risk of forfeiture.
5. The annual increase or decrease in actuarial value of a
nonqualified defined benefit plan, whether or not funded,
vested, or subject to a substantial risk of forfeiture.
Reasonable estimates can be used if precise cost figures aren’t
readily available to determine column (d) amounts.
Column (e)
A “personal benefit contract” is generally any life insurance,
annuity, or endowment contract that benefits, directly or
indirectly, the transferor, a member of the transferor's family, or
any other person designated by the transferor (other than an
organization described in section 170(c)). See section 170(f)
(10); Notice 2000-24, 2000-1 C.B. 952; and Ann. 2000-82,
2000-2 C.B. 385.
Enter both taxable and nontaxable fringe benefits, but don’t
include compensation reported in column (c) or (d) or the
following.
1. Working condition fringe benefits described in section
132(d).
2. Expense reimbursements and allowances under an
accountable plan described in Regulations section
1.62-2(c)(2).
Line 33. Change in Activities
Describe in Schedule O (Form 990) any significant activities that
the organization conducted prior to the end of the tax year that it
hasn’t previously reported to the IRS on Form 990-EZ or 990.
Also, describe significant activities that were discontinued. If the
organization has never filed a Form 990 or 990-EZ, answer “No.”
3. De minimis fringe benefits described in section 132(e).
Include amounts that the recipients must report as income on
their separate income tax returns. Examples include amounts for
which the recipient didn’t account to the organization or
allowances that were more than the payee spent on serving the
organization. Include payments made under indemnification
arrangements, the value of the personal use of housing,
2022 Instructions for Form 990-EZ
An organization must report new, significant program
TIP services or significant changes in how it conducts
program services in Part III of Form 990-EZ and in
-19-
Lines 35a and 35b. Unrelated Business Income
Schedule O (Form 990), rather than in a letter to the IRS Exempt
Organization Determinations Office (“EO Determinations”). EO
Determinations no longer issues letters confirming the
tax-exempt status of organizations that report such new services
or significant changes.
Political organizations described in section 527 aren’t required to
answer these questions.
Check “Yes” on line 35a if the organization's total gross
income from all of its unrelated trades and businesses is $1,000
or more during the tax year. See Pub. 598 for a description of
unrelated business income, and see the Instructions for Form
990-T for the filing requirements of Form 990-T.
Line 34. Changes in Organizing or Governing
Documents
DRAFT AS OF
September 20, 2022
The organization must report significant changes to its
organizing or enabling document by which it was created
(articles of incorporation, association, or organization; trust
instrument; constitution; or similar document), and to its rules
governing its affairs (bylaws, regulations, operating agreement,
or similar document). Report changes made since the prior Form
990-EZ was filed, or that weren’t reported on any prior Form 990,
and that were made before the end of the tax year.
If the organization answered “Yes” to line 35a but answered
“No” to line 35b because it didn’t file a Form 990-T for the tax
year, then explain in Schedule O (Form 990) why the
organization didn’t file a Form 990-T.
If the organization had income from business activities, such
as those reported on lines 2, 6a, and 7a (among others), but not
reported on Form 990-T, explain in Schedule O (Form 990) the
reasons for not reporting the income on Form 990-T.
Examples of significant changes to the organizing or
governing documents include changes to:
• The organization's name;
• The organization's exempt purposes or mission;
• The number, composition, qualifications, authority, or duties
of the governing body's voting members;
• The number, composition, qualifications, authority, or duties
of the organization's officers or key employees;
• The role of the organization's members in governance;
• The distribution of assets upon dissolution;
• The provisions to amend the organizing or enabling
document or bylaws;
• The quorum, voting rights, or voting approval requirements
of the governing body members or the organization's
stockholders or membership;
• The policies or procedures contained within the organizing
documents or bylaws regarding compensation of officers,
directors, trustees, or key employees; conflicts of interest;
whistleblowers; or document retention or destruction; and
• The composition or procedures of an audit committee
contained within the organizing document or bylaws.
Neither Form 990-T nor Form 990-EZ is a substitute for the
other. Items of income and expense reported on Form 990-T
must also be reported on Form 990-EZ (and vice versa) when
the organization is required to file both forms.
All tax-exempt organizations must pay estimated taxes
on their unrelated business income if they expect their
CAUTION tax liability to be $500 or more. Use Form 990-W,
Estimated Tax on Unrelated Business Taxable Income for
Tax-Exempt Organizations, to figure these amounts.
!
Line 35c. Section 6033(e) Tax for Lobbying
Expenditures
If the organization checks “No” to line 35c, it is certifying that it
wasn’t subject to the notice and reporting requirements of
section 6033(e) and that the organization had no lobbying and
political expenditures potentially subject to the proxy tax.
Section 6033(e) notice and reporting requirements and
proxy tax. Section 6033(e) requires certain section 501(c)(4),
501(c)(5), and 501(c)(6) organizations to tell their members the
portion of their membership dues that were allocable to the
political or lobbying activities of the organization. If an
organization doesn’t give its members this information, then the
organization is subject to a proxy tax. The tax is reported on
Form 990-T.
If the organization checks “Yes” on line 35c to declare that it
had reportable section 6033(e) lobbying and political expenses
in the tax year (and potential liability for the proxy tax):
Examples of insignificant changes made to organizing or
governing documents that aren’t required to be reported here
include changes to the organization's registered agent with the
state and to the required or permitted number or frequency of
governing body or member meetings.
Describe significant changes on Schedule O (Form 990), but
don’t attach a copy of the amendments or amended document to
Form 990-EZ (or recite the entire amended document verbatim),
unless such amended documents reflect a change in the
organization's name. See the instructions for Item B, earlier,
regarding attachments required in the event of a change in the
organization's name; these attachments must be conformed
copies of the original documents.
1. Complete Schedule C (Form 990), Part III (see instructions),
and
2. Attach this schedule to Form 990-EZ.
A conformed copy is one that agrees with the original
document and all amendments to it. If the copies aren’t signed,
they must be accompanied by a written declaration signed by an
officer authorized to sign for the organization, certifying that they
are complete and accurate copies of the original documents.
Photocopies of articles of incorporation showing the certification
of an appropriate state official need not be accompanied by such
a declaration. See Rev. Proc. 68-14, 1968-1 C.B. 768, for
details.
Only the following tax-exempt organizations are subject to the
section 6033(e) notice and reporting requirements, and a
potential proxy tax.
• Section 501(c)(4) social welfare organizations.
• Section 501(c)(5) agricultural and horticultural
organizations.
• Section 501(c)(6) organizations.
If the organization isn’t tax exempt under sections 501(c)
(4), 501(c)(5), or 501(c)(6), check “No” on line 35c. If the
organization meets Exception 1 or 2 next, it is excluded from the
notice, reporting, and proxy tax requirements of section 6033(e),
and it should check “No” on line 35c. See also Rev. Proc. 98-19,
1998-1 C.B. 547.
In some cases, if the exempt organization changes its legal
structure, such as from a trust to a corporation, the new legal
entity must file a new exemption application to establish that it
qualifies for exemption. However, the IRS no longer requires a
new exemption application from a domestic 501(c) organization
that undergoes certain changes of its form or place of
organization described in Rev. Proc. 2018-15, 2018-9 I.R.B.
379, available at IRS.gov/irb/2018-09_IRB.
Exception 1. Section 6033(e)(3) exception for nondeductible dues.
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2022 Instructions for Form 990-EZ
• Third-party lobbying, and
• Dues paid to another organization that were used to lobby.
1. All organizations exempt from tax under section 501(a),
other than section 501(c)(4), 501(c)(5), and 501(c)(6)
organizations.
In-house expenditures include:
• Salaries, and
• Other expenses of the organization's officials and staff
2. Local associations of employees' and veterans'
organizations described in section 501(c)(4), but not section
501(c)(4) social welfare organizations.
(including amounts paid or incurred for the planning of
legislative activities).
3. Labor unions and other labor organizations described in
section 501(c)(5), but not section 501(c)(5) agricultural and
horticultural organizations.
In-house expenditures don’t include:
DRAFT AS OF
September 20, 2022
• Any payments to other taxpayers engaged in lobbying or
political activities as a trade or business, and
4. Section 501(c)(4), 501(c)(5), and 501(c)(6) organizations
that receive more than 90% of their dues from:
• Any dues paid to another organization that are allocable to
lobbying or political activities.
a. Section 501(c)(3) organizations;
Line 36. Liquidation, Dissolution, Termination,
or Significant Disposition of Net Assets
b. State or local governments;
c. Entities whose income is exempt from tax under section
115; or
If there was a liquidation, dissolution, termination, or significant
disposition of net assets, enter “Yes” and complete and attach
the applicable parts of Schedule N (Form 990).
d. Organizations described in (1) through (3), previously.
For a complete liquidation, dissolution, termination, or
cessation of operations, also check the “Final return/terminated”
box in the heading of the return.
5. Section 501(c)(4) and 501(c)(5) organizations that receive
more than 90% of their annual dues from persons, families,
or entities that each paid annual dues of $124 or less in
2022 (adjusted annually for inflation). See Rev. Proc.
2021-45, 2021-48 I.R.B. 764.
A “significant disposition of net assets” is a sale, exchange,
disposition, or other transfer of more than 25% of the FMV of the
organization's net assets during the year, regardless of whether
the organization received full or adequate consideration. A
significant disposition of net assets may result from either an
expansion or contraction of operations. A significant disposition
of net assets involves:
6. Any organization that receives a private letter ruling from the
IRS stating that the organization satisfies the section
6033(e)(3) exception.
7. Any organization that keeps records to substantiate that
90% or more of its members can’t deduct their dues (or
similar amounts) as business expenses whether or not any
part of their dues are used for lobbying purposes.
1. One or more dispositions during the organization's tax year
amounting to more than 25% of the FMV of the
organization's assets as of the beginning of its tax year; or
8. Any organization that isn’t a membership organization.
2. One of a series of related dispositions or events
commenced in a prior year that, when combined, comprise
more than 25% of the FMV of the organization's assets as
of the beginning of the tax year when the first disposition of
net assets occurred. Whether a series of related
dispositions is a significant disposition of net assets
depends on the facts and circumstances in each case.
Special rules treat affiliated social welfare organizations,
agricultural and horticultural organizations, and business
CAUTION leagues as parts of a single organization for purposes of
meeting the nondeductible dues exception. See Rev. Proc.
98-19.
!
Exception 2. Section 6033(e)(1) $2,000 in-house lobbying
exception. An organization satisfies the $2,000 in-house
lobbying exception if it:
Examples of the types of transactions that are significant
dispositions of net assets required to be reported on Schedule N
(Form 990), Part II, include:
• Taxable or tax-free sales or exchanges of exempt assets for
cash or other consideration (such as a social club described
in section 501(c)(7) selling land, or an exempt organization
selling assets it had used to further its exempt purposes);
• Sales, contributions, or other transfers of assets to establish
or maintain a partnership, joint venture, or corporation
(for-profit or nonprofit), regardless of whether such sales or
transfers are governed by section 721 or section 351,
whether or not the transferor receives an ownership interest
in exchange for the transfer;
• Sales of assets by a partnership or joint venture in which the
exempt partner has an ownership interest;
• Transfers of assets under a reorganization in which the
organization is a surviving entity; and
• A contraction of net assets resulting from a grant or
charitable contribution of assets to another organization
described in section 501(c)(3).
1. Didn’t receive a waiver for proxy tax owed for the prior year;
2. Didn’t make any political expenditures or foreign lobbying
expenditures during the current tax year; and
3. Incurred lobbying expenses during the current tax year
consisting only of in-house direct lobbying expenses
totaling $2,000 or less, but excluding any allocable
overhead expenses.
Definitions
Grassroots lobbying. Refers to attempts to influence any
segment of the general public regarding legislative matters or
referendums.
Direct lobbying includes attempting to influence:
• Legislation through communication with legislators and
other government officials, and
• The official actions or positions of covered executive branch
officials through direct communication.
An organization filing Form 990-EZ need not complete
TIP Schedule N (Form 990), Part II, for a transaction that
Direct lobbying doesn’t include attempting to influence:
isn’t a significant disposition of net assets.
• The general public regarding legislative matters (grassroots
lobbying).
The following aren’t considered significant dispositions of net
assets for purposes of Schedule N (Form 990), Part II.
• The change in composition of publicly traded securities held
in an exempt organization’s passive investment portfolio.
Other lobbying includes:
• Grassroots lobbying,
• Foreign lobbying,
2022 Instructions for Form 990-EZ
-21-
• Asset sales made in the ordinary course of the
•
• Expenses of conducting polls, surveys, or other studies, or
organization’s exempt activities to accomplish the
organization’s exempt purposes, such as gross sales of
inventory.
Grants or other assistance made in the ordinary course of
the organization’s exempt activities to accomplish the
organization’s exempt purposes, such as the regular
charitable distributions of a United Way or other federated
fundraising organization.
A decrease in the value of net assets due to market
fluctuation in the value of assets held by the organization.
Transfers to a disregarded entity of which the organization is
the sole member.
•
•
preparing papers or other material for use by such
individual.
Expenses of advertising, publicity, and fundraising for such
individual.
Any other expense that has the primary effect of promoting
public recognition or otherwise primarily accruing to the
benefit of such individual.
DRAFT AS OF
September 20, 2022
•
•
An organization is effectively controlled by a candidate or
prospective candidate only if such individual has a continuing,
substantial involvement in the day-to-day operations or
management of the organization.
A determination of whether the primary purpose of an
organization is promoting the candidacy or prospective
candidacy of an individual for public office is made on the basis
of all the facts and circumstances. See section 4955 and
Regulations section 53.4955.
Use Form 4720 to figure and report these excise taxes.
Line 37. Expenditures for Political Purposes
Political organizations described in section 527 aren’t
required to answer this question.
A political expenditure is one intended to influence the
selection, nomination, election, or appointment of anyone to a
federal, state, or local public office, or office in a political
organization, or the election of Presidential or Vice Presidential
electors. It doesn’t matter whether the attempt succeeds.
Line 38. Loans to or From Officers, Directors,
Trustees, and Key Employees
Enter the end-of-year unpaid balance of secured and unsecured
loans made to or received from officers, directors, trustees, and
key employees (as defined in Part IV, earlier). For example, if the
organization borrowed $1,000 from one officer and loaned $500
to another, none of which has been repaid, report $1,500 on
line 38b.
An expenditure includes a payment, distribution, loan,
advance, deposit, or gift of money, or anything of value. It also
includes a contract, promise, or agreement to make an
expenditure, whether or not legally enforceable.
All section 501(c) organizations. An exempt organization that
isn’t a political organization must file Form 1120-POL, U.S.
Income Tax Return for Certain Political Organizations, if it is
treated as having political organization taxable income under
section 527(f)(1).
If a section 501(c) organization establishes and maintains a
section 527(f)(3) separate segregated fund, it is the fund's
responsibility to file its own Form 1120-POL if the fund meets the
Form 1120-POL filing requirements. Do not include the
segregated fund's receipts, expenditures, and balance sheet
items on the Form 990-EZ of the section 501(c) organization that
establishes and maintains the fund. When answering question
37 on its Form 990-EZ, the section 501(c) organization should
disregard the political expenses and Form 1120-POL filing
requirement of the segregated fund. However, when a section
501(c) organization transfers its own funds to a separate
segregated section 527(f)(3) fund for use as political expenses,
the section 501(c) organization must report the transferred funds
as its own political expenses on its Form 990-EZ.
For loans outstanding at the end of the year, complete and
attach Schedule L (Form 990), Part II. See the Instructions for
Schedule L (Form 990).
Report any interest expense paid to an officer, director,
trustee, or key employee on line 16 (except for mortgage interest
reportable on line 14) and any interest income paid by an officer,
director, trustee, or key employee on line 8.
Line 39. Section 501(c)(7) Organizations
Gross receipts test. See Appendix C, later, for a discussion of
the gross receipts test for purposes of determining exemption
under section 501(c)(7). This definition of gross receipts differs
from the definition for purposes of header Item L, earlier, and
determining whether the organization must file Form 990 or
990-EZ.
Line 39a. Include capital contributions, initiation fees, and
unusual amounts of income not included in figuring gross
receipts for the purpose of determining the exempt status of
section 501(c)(7) organizations, as discussed in Appendix C,
later.
Section 501(c)(3) organizations. A section 501(c)(3)
organization will lose its tax-exempt status if it engages in
political activity.
A section 501(c)(3) organization must pay a section 4955
excise tax for any amount paid or incurred on behalf of, or in
opposition to, any candidate for public office. The organization
must pay an additional excise tax if it fails to correct the
expenditure timely.
A manager of a section 501(c)(3) organization who knowingly
agrees to a political expenditure must pay a section 4955 excise
tax, unless the agreement isn’t willful and there is reasonable
cause. A manager who doesn’t agree to a correction of the
political expenditure may have to pay an additional excise tax.
When an organization promotes a candidate for public office
(or is used or controlled by a candidate or prospective
candidate), amounts paid or incurred for the following purposes
are political expenditures.
• Remuneration to such individual (a candidate or prospective
candidate) for speeches or other services.
• Travel expenses of such individual.
Line 39b. Gross receipts for public use of club facilities are
gross receipts (as defined above for 501(c)(7) exemption
purposes) derived from the use of the organization's facilities by
persons other than members, spouses of members, dependents
of members, or guests of members.
Investment income and Form 990-T. If a section 501(c)(7)
organization qualifies as tax exempt under the gross receipts
test described in Appendix C, then include the amount entered
on line 39b of Form 990-EZ on the club's Form 990-T if the club
is required to file Form 990-T. Investment income earned by a
section 501(c)(7) organization isn’t tax-exempt income unless it
is set aside for one or more of the following purposes: religious,
charitable, scientific, literary, educational, or the prevention of
cruelty to children or animals.
If the combined amount of an organization's gross investment
income and other unrelated business income is $1,000 or more,
it must report the investment income and other unrelated
business income on Form 990-T.
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2022 Instructions for Form 990-EZ
Line 40d. Taxes Reimbursed by the
Organization
Nondiscrimination policy. A section 501(c)(7) organization
isn’t exempt from income tax if any written policy statement,
including the governing instrument and bylaws, allows
discrimination on the basis of race, color, or religion.
However, section 501(i) allows social clubs to retain their
exemption under section 501(c)(7) even though their
membership is limited (in writing) to members of a particular
religion if the social club:
Enter the amount of tax on line 40c that was reimbursed by the
organization. Any reimbursement of the excise tax liability of a
disqualified person or organization manager will be treated as an
excess benefit unless:
1. The organization treats the reimbursement as
compensation during the year the reimbursement is made;
and
DRAFT AS OF
September 20, 2022
1. Is an auxiliary of a fraternal beneficiary society exempt
under section 501(c)(8); and
2. The total compensation to that person, including the
reimbursement, is reasonable.
2. Limits its membership to the members of a particular
religion; or the membership limitation is:
Line 40e. Tax on Prohibited Tax Shelter
Transactions
a. A good-faith attempt to further the teachings or
principles of that religion, and
Answer “Yes” if the organization was a party to a prohibited tax
shelter transaction as described in section 4965(e) at any time
during the organization's tax year. An organization that files
Form 990-EZ (other than a section 527 political organization)
and that is a party to a prohibited tax shelter transaction must file
Form 8886-T, Disclosure by Tax-Exempt Entity Regarding
Prohibited Tax Shelter Transaction, and may also have to file
Form 4720 and pay excise tax imposed by section 4965. For
more information, see the instructions for Forms 8886-T and
4720.
b. Not intended to exclude individuals of a particular race
or color.
Line 40a. Section 501(c)(3) Organizations:
Disclosure of Excise Taxes Imposed Under
Section 4911, 4912, or 4955
Section 501(c)(3) organizations must disclose any excise tax
imposed during the year under section 4911 (excess lobbying
expenditures); 4912 (disqualifying lobbying expenditures); or,
unless abated, 4955 (political expenditures). See sections 4962
and 6033(b).
Line 41. List of States
List each state where the organization is filing a copy of this
return in full or partial satisfaction of state filing requirements.
Line 40b. Section 501(c)(3), 501(c)(4), and
501(c)(29) Organizations: Disclosure of Section
4958 Excess Benefit Transactions and Excise
Taxes
Line 42a. Location of Books and Records
Provide the name of the person who possesses the
organization's books and records. The organization isn’t
required to provide the address or telephone number for the
personal residence of an individual. The organization's address
and phone number can be used instead, or the business
address and telephone number of such individual.
Answer “Yes” if the organization became aware, prior to filing
this return, that it engaged in an excess benefit transaction with a
disqualified person in the current tax year or in a prior year, and if
the transaction hasn’t been reported on any of the organization's
prior Forms 990 or 990-EZ.
Line 42b. Foreign Financial Accounts
Sections 6033(b) and 6033(f) require section 501(c)(3) and
501(c)(4) organizations to report the amount of taxes imposed
under section 4958 (excess benefit transactions) involving the
organization, unless abated, as well as any other information the
Secretary may require concerning those transactions.
Answer “Yes” if either item 1 or 2 below applies.
1. At any time during the calendar year ending with or within
the organization's tax year, the organization had an interest
in, or signature or other authority over, a financial account in
a foreign country (such as a bank account, securities
account, or other financial account); and
If the organization answers “Yes,” then complete and attach
Schedule L (Form 990), Part I.
a. The combined value of the accounts was more than
$10,000 at any time during the calendar year; and
An excess benefit transaction can have serious
TIP implications for the disqualified person that entered into
the transaction with the organization, any organization
managers that knowingly approved of the transaction, and the
organization itself. A section 501(c)(3), 501(c)(4), or 501(c)(29)
organization that becomes aware that it may have engaged in an
excess benefit transaction should obtain competent advice
regarding section 4958, pursue correction of any excess benefit,
and take other appropriate steps to protect its interests with
regard to such transaction and the potential impact it could have
on the organization's continued exempt status. See Appendix E:
Section 4958 Excess Benefit Transactions, later, for a
discussion of section 4958, and Schedule L (Form 990), Part I,
about reporting excess benefit transactions.
b. The accounts weren’t with a U.S. military banking facility
operated by a U.S. financial institution.
2. The organization owns more than 50% of the stock in any
corporation that would answer “Yes” to item 1 above.
If “Yes,” enter the name of the foreign country or countries.
Continue on Schedule O (Form 990) if more space is needed.
If “Yes,” file FinCEN Form 114, Report of Foreign Bank and
Financial Accounts (FBAR), electronically with the Department
of the Treasury using FinCEN's BSA E-Filing System. Because
FinCEN Form 114 isn’t a tax form, don’t file it with Form 990-EZ.
See FINCEN.gov for more information.
Line 40c. Taxes Imposed on Organization
Managers or Disqualified Persons
Line 43. Section 4947(a)(1) Nonexempt
Charitable Trusts
Enter the amount of taxes imposed on organization managers
and/or disqualified persons under sections 4912, 4955, and
4958, unless abated.
2022 Instructions for Form 990-EZ
A section 4947(a)(1) nonexempt charitable trust that has no
taxable income under subtitle A can use Form 990-EZ to meet
its section 6012 filing requirement by checking the box on line 43
-23-
2. For which a donor or donor advisor gives advice about
which individuals receive grants for travel, study, or other
similar purposes if:
(in which case Form 1041 isn’t required). In such case, enter on
line 43 the total of exempt-interest dividends received or accrued
(if reporting under the accrual method of accounting) during the
tax year. Such tax-exempt interest includes exempt-interest
dividends received from a mutual fund or other regulated
investment company as well as tax-exempt interest received
directly.
a. The donor’s or donor advisor's advisory privileges are
performed exclusively by such person in the donor’s or
donor advisor's capacity as a committee member in
which all of the committee members are appointed by
the sponsoring organization;
Section 4947(a)(1) nonexempt charitable trusts must
complete all sections of the Form 990-EZ and schedules that
501(c)(3) organizations must complete. All references to a
section 501(c)(3) organization in the Form 990-EZ, schedules,
and instructions include a section 4947(a)(1) trust (for instance,
such a trust must complete Schedule A (Form 990)), unless
expressly excepted.
Trust fund recovery penalty. If certain excise, income,
social security, and Medicare taxes that must be collected or
withheld aren’t collected or withheld, or these taxes aren’t paid to
the IRS, a trust fund recovery penalty may apply. The trust fund
recovery penalty may be imposed on all persons (including
volunteers) who the IRS determines were responsible for
collecting, accounting for, and paying over these taxes, and who
acted willfully in not doing so.
This penalty doesn’t apply to volunteer unpaid members of
any board of trustees or directors of a tax-exempt organization if
these members are solely serving in an honorary capacity, don’t
participate in the day-to-day or financial activities of the
organization, and don’t have actual knowledge of the failure to
collect, account for, and pay over these taxes. However, the
preceding sentence doesn’t apply if it results in no person being
liable for the penalty.
The penalty is equal to the unpaid trust fund tax. See Pub. 15
(Circular E) for more details, including the definition of
responsible persons.
DRAFT AS OF
September 20, 2022
b. No combination of donors or donor advisors directly or
indirectly controls the committee; and
c. All grants from the fund or account are awarded on an
objective and nondiscriminatory basis following a
procedure approved in advance by the board of
directors of the sponsoring organization. The procedure
must be designed to ensure that all grants meet the
requirements of section 4945(g)(1), (2), or (3); or
3. That the Secretary exempts from being treated as a donor
advised fund because either such fund or account is
advised by a committee not directly or indirectly controlled
by the donor or donor advisor or such fund benefits a single
identified charitable purpose. For example, see Notice
2006-109, 2006-51 I.R.B. 1121, which is modified by Rev.
Proc. 2009-32, 2009-28 I.R.B.142; and Rev. Proc. 2009-32
is modified and superseded by Rev. Proc. 2011-33,
2011-25 I.R.B. 887, which is modified and superseded by
Rev. Proc. 2018-32, 2018-23 I.R.B. 739; and any future
related guidance.
A “donor advisor” is any person appointed or designated by a
donor to advise a sponsoring organization on the distribution or
investment of amounts held in the donor's donor advised fund or
similar account.
Line 44b. Hospital Facilities
Line 44a. Donor Advised Funds
!
CAUTION
If the organization operated one or more hospital facilities during
the tax year, it must complete and file Form 990 and Schedule H
(Form 990) and not Form 990-EZ.
A sponsoring organization of a donor advised fund must
file Form 990 rather than Form 990-EZ, regardless of the
amount of its gross receipts or net assets.
A “hospital facility” is a facility that is required to be licensed,
registered, or similarly recognized by a state as a hospital. This
includes a hospital that is operated through a disregarded entity
or joint venture treated as a partnership for federal tax purposes.
It doesn’t include hospitals that are located outside the United
States. It also doesn’t include hospitals that are operated by
entities organized as separate legal entities from the
organization that are treated as corporations for federal tax
purposes.
A sponsoring organization is any of the following types of
organizations if it maintains one or more donor advised funds.
1. A section 501(c)(3) public charity described in section
509(a)(1), (2), or (3).
2. A veterans' organization, organized in the United States or
any of its possessions, no part of the net earnings of which
inures to the benefit of any private shareholder or individual,
that meets the requirements to receive deductible
contributions under section 170(c)(3).
The definition of “hospital” for Schedule A (Form 990),
TIP Part I, is different from the definition of “hospital facility”
3. A domestic fraternal organization described in section
501(c)(8) or (10) that uses charitable contributions
exclusively for charitable purposes.
for Schedule H (Form 990). See the Glossary in the
Form 990 instructions for the respective definitions.
4. A cemetery company described in section 501(c)(13).
Lines 44c and 44d. Payments for Indoor
Tanning Services
A “donor advised fund” is a fund or account:
The organization should check “Yes” for line 44c if it received
any payments during the year for indoor tanning services.
“Indoor tanning services” are services employing any electronic
product designed to incorporate one or more ultraviolet lamps
and intended for the irradiation of an individual by ultraviolet
radiation, with wavelengths in air between 200 and 400
nanometers, to induce skin tanning.
1. That is separately identified by reference to contributions of
a donor or donors,
2. That is owned and controlled by a sponsoring organization,
and
3. Over which the donor or donor advisor has or reasonably
expects to have advisory privileges in the distribution or
investment of amounts held in the donor advised fund or
account because of the donor's status as a donor.
If an organization received a payment for services for indoor
tanning services during the year, it must collect from the
recipient of the services a tax equal to 10% of the amount paid
for such service, whether paid by insurance or otherwise, and
remit such tax quarterly to the IRS by filing Form 720, Quarterly
Federal Excise Tax Return. If the organization filed Form 720
A donor advised fund doesn’t include any fund or account:
1. That makes distributions only to a single identified
organization or governmental entity; or
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2022 Instructions for Form 990-EZ
Line 48. Schools
during the year, it should check “Yes” to line 44d. If it answers
“No” to line 44d, it should explain in Schedule O (Form 990) why
it didn’t file Form 720.
Answer “Yes” and complete Schedule E (Form 990) if the
organization checked the box on Schedule A (Form 990), Part I,
line 2, indicating that it is a school.
Line 45a. Section 512(b)(13) Controlled Entity
Line 49. Transfers to Exempt Non-Charitable
Related Organizations
Answer “Yes” if the organization had a controlled entity within the
meaning of section 512(b)(13) during the tax year. A “controlled
entity within the meaning of section 512(b)(13)” may be a stock
or nonstock corporation, association, partnership, LLC, or trust
of which the controlling organization owns more than 50% of:
• The stock of a corporation (measured by voting power or
value),
• The profits or capital interest in a partnership, or
• The beneficial interest in a trust or other entity.
Answer “Yes” if the organization made any transfer to a related
organization that is an exempt organization other than a 501(c)
(3) organization, such as a related 501(c)(4) organization or a
related 527 political organization.
DRAFT AS OF
September 20, 2022
A transfer for this purpose is any transaction or arrangement
in which the organization transferred something of value (cash,
other assets, services, use of property, etc.) to the exempt
non-charitable related organization, whether or not for adequate
consideration. The organization can (but isn’t required to)
explain the transfer in Schedule O (Form 990).
For the definition of “control” in this context, see section
512(b)(13)(D) and Regulations section 1.512(b)-1(l)(4)
(substituting “more than 50%” for “at least 80%” in the
regulations, for purposes of this definition). For the definition of
“control of a nonprofit organization,” see the instructions for
line 49.
For purposes of Form 990-EZ, a related organization is an
organization (including a nonprofit organization, a stock
corporation, a partnership or LLC, a trust, and a governmental
unit or other governmental entity) that is in one or more of the
following relationships to the filing organization at any time
during the tax year.
Parent. An organization that controls the filing organization
(see definition of “control,” later).
Subsidiary. An organization controlled by the filing
organization.
Brother/Sister. An organization controlled by the same
person or persons that control the filing organization. However, if
the filing organization is a trust that has a bank or financial
institution trustee that is also the trustee of another trust, the
other trust isn’t a brother/sister related organization of the filing
organization on the ground of common control by the bank or
financial institution trustee.
Supporting/Supported. An organization that claims to be at
any time during the tax year, or that is classified by the IRS at
any time during the tax year, as the following.
• A supporting organization of the filing organization within the
meaning of section 509(a)(3), if the filing organization is a
supported organization within the meaning of section 509(f)
(3); or
• A supported organization, if the filing organization is a
supporting organization.
Line 45b. Transactions With a Section 512(b)
(13) Controlled Entity
A controlling organization of a controlled entity under section
512(b)(13) must file Form 990 and Schedule R (Form 990),
Related Organizations and Unrelated Partnerships, rather than
Form 990-EZ, if the controlling organization either:
1. Received or accrued from the controlled entity any interest,
annuities, royalties, or rent, regardless of amount, during
the tax year; or
2. Engaged in another type of transaction (see the Instructions
for Schedule R (Form 990) for a description of transactions)
with the controlled entity, if the amounts involved during the
tax year for such type of transaction exceeded $50,000.
The organization should check “Yes” to line 45b only if
transactions with the controlled entity are described in
CAUTION (1) or (2) above. That organization should file Form 990
and Schedule R (Form 990). If transactions with the controlled
entity are not described in (1) or (2), the organization isn’t
precluded from filing Form 990-EZ because of those
transactions, and should check “No” to line 45b.
!
Line 46. Political Campaign Activities
For purposes of determining whether an organization is
related, control exists in the following situations.
Control of a nonprofit organization (or other organization
without owners or persons having beneficial interests,
whether the organization is taxable or tax exempt). One or
more persons (whether individuals or organizations) control a
nonprofit organization if they have the power to remove and
replace (or to appoint, elect, or approve or veto the appointment
or election of, if such power includes a continuing power to
appoint, elect, or approve or veto the appointment or election of,
periodically or in the event of vacancies) a majority of the
nonprofit organization’s directors or trustees, or a majority of
members who elect a majority of the nonprofit organization’s
directors or trustees.
Such power can be exercised directly by a parent
organization through one or more of the parent organization’s
officers, directors, trustees, or agents acting in their capacity as
officers, directors, trustees, or agents of the parent organization.
Also, a parent organization controls a subsidiary nonprofit
organization if a majority of the subsidiary’s directors or trustees
are trustees, directors, officers, employees, or agents of the
parent.
Control of a stock corporation. One or more persons
(whether individuals or organizations) control a stock corporation
Answer “Yes” and complete the applicable parts on Schedule C
(Form 990), Part I, if the organization participated or intervened
in (including the publishing of statements) any political campaign
on behalf of (or in opposition to) any candidate for public office,
directly or indirectly. See the Instructions for Schedule C (Form
990) for a discussion of political activity.
Part VI. Section 501(c)(3)
Organizations
All section 501(c)(3) organizations (including, for purposes of
Form 990-EZ, section 4947(a)(1) nonexempt charitable trusts)
must complete Part VI.
Line 47. Lobbying Activities
Answer “Yes” and complete Schedule C (Form 990), Part II, if
the organization engaged in lobbying activities or had a section
501(h) election in effect during the tax year. All section 501(c)(3)
organizations that had a section 501(h) election in effect during
the tax year must complete Schedule C (Form 990), Part II-A,
regardless of whether they engaged in lobbying activities during
the tax year. See the Instructions for Schedule C (Form 990) for
a discussion of lobbying activities.
2022 Instructions for Form 990-EZ
-25-
(c) would be $82,000, the amount reportable in box 5 of Form
W-2 consisting of the $80,000 salary (including S’s contributions
to the qualified plans) and the $2,000 bonus. S's compensation
in column (d) would be $15,000, consisting of the organization's
payments of $5,000 to the retirement plan and $10,000 to the
health plan. S wouldn’t report the $5,000 in nontaxable family
educational benefits in column (e) because it is excluded under
the $10,000-per-item exception for column (e). Thus, S's total
compensation of $97,000 wouldn’t place S among the five
highest compensated employees over $100,000.
if they own more than 50% of the stock (by voting power or
value) of the corporation.
Control of a partnership or LLC. One or more persons
control a partnership if they own more than 50% of the profits or
capital interests in the partnership (including an LLC treated as a
partnership or disregarded entity for federal tax purposes,
regardless of the designation under state law of the ownership
interests as stock, membership interests, or otherwise). A
person also controls a partnership if the person is a managing
partner or managing member of a partnership or LLC that has
three or fewer managing partners or managing members
(regardless of which partner or member has the most actual
control), or if the person is a general partner in a limited
partnership that has three or fewer general partners (regardless
of which partner has the most actual control). For this purpose, a
“managing partner” is a partner designated as such under the
partnership agreement, or regularly engaged in the management
of the partnership even though not so designated.
Control of a trust with beneficial interests. One or more
persons control a trust if they own more than 50% of the
beneficial interests in the trust. A person’s beneficial interest in a
trust shall be determined in proportion to that person’s actuarial
interest in the trust as of the end of the tax year.
DRAFT AS OF
September 20, 2022
See Pub. 525 for more information.
Line 51. Five Highest Compensated
Independent Contractors Over $100,000
Complete this table for the five highest compensated
independent contractors that received more than $100,000 in
compensation for services, whether professional services or
other services, from the organization. On line 51d, enter the
number of other independent contractors with annual
compensation over $100,000 that aren’t individually listed.
Independent contractors include organizations as well as
individuals and can include professional fundraisers, law firms,
accounting firms, publishing companies, management
companies, and investment management companies. Do not
report public utilities or insurance providers as independent
contractors. See Pub. 1779, Independent Contractor or
Employee, and Pub. 15-A, Employer's Supplemental Tax Guide,
for distinguishing employees from independent contractors.
Control can be indirect. For example, if the filing organization
controls Entity A, which in turn controls Entity B, the filing
organization will be treated as controlling Entity B. To determine
indirect control through constructive ownership of a corporation,
rules under section 318 apply. Similar principles apply for
purposes of determining constructive ownership of another
entity (a partnership or trust). If an entity X controls an entity
treated as a partnership by being one of three or fewer partners
or members, then an organization that controls X also controls
the partnership.
The organization must use the calendar year ending with or
within its tax year in determining its five highest compensated
independent contractors and reporting their compensation in
such year on line 51.
See Regulations sections 301.7701-2, -3, and -4 for more
information on classification of corporations, partnerships,
disregarded entities, and trusts.
Column (c)—Compensation. Enter the amount of
compensation the organization paid, whether reported in box 1
of Form 1099-NEC and/or box 6 of Form 1099-MISC or paid
under the parties’ agreement or applicable state law, for the
calendar year ending with or within the organization’s tax year.
Otherwise, report the amount paid under the parties' agreement
or applicable state law.
Line 50. Five Highest Compensated Employees
Over $100,000
Complete this table for the five employees (other than officers,
directors, trustees, and key employees as defined in the Part IV
instructions, earlier) with the highest annual compensation over
$100,000. On line 50f, enter the number of other employees
(other than officers, directors, trustees, and key employees) with
annual compensation over $100,000 who aren’t individually
listed.
Forms 1099-NEC and 1099-MISC aren’t always
TIP required to be issued for payments to an independent
contractor.
Compensation includes fees and similar payments to
independent contractors but not reimbursement of expenses.
However, for this purpose, the organization must report the
gross payment to the independent contractor that includes
expenses and fees if the expenses aren’t separately reported to
the organization.
A fiscal-year organization must use the calendar year ending
within its tax year to determine its five highest compensated
employees over $100,000, and to report the compensation.
Combine the compensation includible in Part VI, columns (c),
(d), and (e), in determining whether compensation exceeds
$100,000 for the calendar year.
Signature Block
The return must be signed by the current president, vice
president, treasurer, assistant treasurer, chief accounting officer,
or other corporate officer (such as tax officer) who is authorized
to sign as of the date this return is filed. A receiver, trustee, or
assignee must sign any return any one of them file for a
corporation or association. See Regulations section 1.6012-3(b)
(4). For a trust, the authorized trustee(s) must sign.
See the Part IV instructions, earlier, for more information on
compensation reporting and for completing table columns (a)
through (e) of line 50, and for information on the
$10,000-per-item exception for column (e).
Example. S isn’t a key employee. The organization uses a
calendar tax year. During the year, S received a salary of
$80,000 and a $2,000 bonus. S contributed $5,000 of the salary
on a pre-tax basis to a qualified defined-contribution retirement
plan, and received a matching employer contribution of $5,000
from the organization. S contributed another $5,000 of the salary
on a pre-tax basis to a qualified health plan. S received from the
employer nontaxable health benefits for S and S’s family of
$10,000, and nontaxable family educational benefits of $5,000.
To determine whether S is to be listed as among the five
highest compensated employees, S's compensation in column
Paid Preparer
Generally, anyone who is paid to prepare the return must sign
the return, list the preparer taxpayer identification number
(PTIN), and fill in the other blanks in the Paid Preparer Use Only
area. An employee of the filing organization isn’t a paid preparer.
The paid preparer must:
• Sign the return in the space provided for the preparer's
signature;
-26-
2022 Instructions for Form 990-EZ
• Enter the preparer information (including the preparer’s
Appendix A: Exempt Organizations Reference
Chart
PTIN and the preparer firm’s EIN, if applicable); and
• Give a copy of the return to the organization.
Any paid preparer can apply for and obtain a PTIN online at
IRS.gov/PTIN or by filing Form W-12, IRS Paid Preparer Tax
Identification Number (PTIN) Application and Renewal.
EO Reference Chart
To determine how the Instructions for Form 990-EZ apply to the
organization, an organization must know the Code section under
which the organization is exempt.
Enter the paid preparer’s PTIN, not the social security
number (SSN), in the “PTIN” box in the paid preparer’s
CAUTION block. The IRS won’t redact the paid preparer’s SSN if
such SSN is entered on the paid preparer’s block. Because
Form 990-EZ is a publicly disclosable document, any information
entered in this block will be publicly disclosed (see Appendix D).
!
DRAFT AS OF
September 20, 2022
Note. A paid preparer may sign original or amended returns by
rubber stamp, mechanical device, or computer software
program. Also, facsimile signatures are authorized.
Paid Preparer Authorization
On the last line of Form 990-EZ, check “Yes” if the IRS can
contact the paid preparer who signed the return to discuss the
return. This authorization applies only to the individual whose
signature appears in the Paid Preparer Use Only section of Form
990-EZ. It doesn’t apply to the firm, if any, shown in that section.
By checking this box “Yes,” the organization is authorizing the
IRS to contact the paid preparer to answer any questions that
may arise during the processing of the return. The organization
is also authorizing the paid preparer to:
• Give the IRS any information that is missing from the return;
• Call the IRS for information about the processing of the
return; and
• Respond to certain IRS notices about math errors, offsets,
and return preparation.
The organization isn’t authorizing the paid preparer to bind
the organization to anything or otherwise represent the
organization before the IRS.
The authorization will automatically end no later than the due
date (excluding extensions) for filing the organization's 2023
Form 990-EZ. If the organization wants to expand the paid
preparer's authorization or revoke the authorization before it
ends, see Pub. 947, Practice Before the IRS and Power of
Attorney.
Check “No” if the IRS is to contact the organization at the
address or telephone number listed in the heading, rather than
the paid preparer.
I.R.C. Section
Corporations Organized Under Act of
Congress
501(c)(1)
Title Holding Corporations
501(c)(2)
Charitable, Religious, Educational,
Scientific, etc., Organizations
501(c)(3)
Civic Leagues and Social Welfare
Organizations
501(c)(4)
Labor, Agricultural, and Horticultural
Organizations
501(c)(5)
Business Leagues, etc.
501(c)(6)
Social and Recreation Clubs
Fraternal Beneficiary and Domestic
Fraternal Societies and Associations
Appendix of Special Instructions to
Form 990-EZ Contents
-27-
501(c)(7)
501(c)(8) and (c)(10)
Voluntary Employees' Beneficiary
Associations
501(c)(9)
Teachers' Retirement Fund
Associations
501(c)(11)
Benevolent Life Insurance
Associations, Mutual Ditch or
Irrigation Companies, Mutual or
Cooperative Telephone Companies,
etc.
501(c)(12)
Cemetery Companies
501(c)(13)
State-Chartered Credit Unions,
Mutual Reserve Funds, etc.
501(c)(14)
Insurance Companies or Associations
Other Than Life
501(c)(15)
Cooperative Organizations To
Finance Crop Operations
501(c)(16)
Supplemental Unemployment Benefit
Trusts
501(c)(17)
Employee-Funded Pension Trusts
(created before June 25, 1959)
501(c)(18)
Organizations of Past or Present
Members of the Armed Forces
A Exempt Organizations Reference Chart
B How To Determine Whether an Organization's Gross
Receipts Are Normally $50,000 (or $5,000) or Less
C Special Gross Receipts Tests for Determining
Exempt Status of Section 501(c)(7) and Section
501(c)(15) Organizations
D Public Inspection of Returns
E Section 4958 Excess Benefit Transactions
F Forms and Publications To File or Use
G Use of Form 990 or 990-EZ To Satisfy State
Reporting Requirements
H Contributions
2022 Instructions for Form 990-EZ
Type of Organization
501(c)(19) and (c)(23)
Black Lung Benefit Trusts
501(c)(21)
Withdrawal Liability Payment Funds
501(c)(22)
Trusts Described in Section 4049 of
the Employer Retirement Income
Security Act
501(c)(24)
Title Holding Corporations or Trusts
501(c)(25)
Type of Organization
$50,000 Gross Receipts Test
I.R.C. Section
State-Sponsored Organizations
Providing Health Coverage for
High-Risk Individuals
501(c)(26)
State-Sponsored Workmen's
Compensation and Insurance and
Reinsurance Organizations
501(c)(27)
National Railroad Retirement
Investment Trust
501(c)(28)
Qualified Nonprofit Health Insurance
Issuers
501(c)(29)
Religious and Apostolic Associations
501(d)
Cooperative Hospital Service
Organizations
501(e)
Cooperative Service Organizations of
Operating Educational Organizations
501(f)
To determine whether an organization's gross receipts are
normally $50,000 or less, apply the following test. An
organization's gross receipts are considered normally to be
$50,000 or less if the organization is:
1. Up to a year old and has received, or donors have pledged
to give, $75,000 or less during its first tax year;
DRAFT AS OF
September 20, 2022
Amateur Sports Organizations
501(j)
Childcare Organizations
501(k)
Charitable Risk Pools
501(n)
Political Organizations
527
2. Between 1 and 3 years old and averaged $60,000 or less in
gross receipts during each of its first 2 tax years; or
3. Three years old or more and averaged $50,000 or less in
gross receipts for the immediately preceding 3 tax years
(including the year for which the return would be filed).
If the organization's gross receipts are normally $50,000 or
less, it must submit Form 990-N if it chooses not to file Form 990
or 990-EZ. In general, organizations excepted from filing Form
990 or 990-EZ because of low gross receipts must submit Form
990-N. See the filing exceptions described in General
Instructions B, earlier.
$5,000 Gross Receipts Test
To determine whether an organization's gross receipts are
normally $5,000 or less, apply the following test. An
organization's gross receipts are considered normally to be
$5,000 or less if the organization is:
Appendix B: How To Determine Whether an
Organization's Gross Receipts Are Normally
$50,000 (or $5,000) or Less
1. Up to a year old and has received, or donors have pledged
to give, $7,500 or less during its first tax year;
To figure whether an organization has to file Form 990-EZ (or
Form 990), apply the $50,000 (or $5,000) gross receipts test
(below) using the following definition of gross receipts and
information in Figuring Gross Receipts, later.
2. Between 1 and 3 years old and averaged $6,000 or less in
gross receipts during each of its first 2 tax years; or
3. Three years old or more and averaged $5,000 or less in
gross receipts for the immediately preceding 3 tax years
(including the year for which the return would be filed).
Gross Receipts
Gross receipts are the total amounts the organization received
from all sources during its annual tax year (including short
years), without subtracting any costs or expenses.
Appendix C: Special Gross Receipts Tests for
Determining Exempt Status of Section 501(c)(7)
and Section 501(c)(15) Organizations
Do not use the definition of gross receipts described in
Appendix C to figure gross receipts for this purpose. The
CAUTION Appendix C tests are limited to determining the
tax-exempt status of section 501(c)(7) and 501(c)(15)
organizations.
!
Section 501(c)(7) organizations (social clubs) and 501(c)(15)
organizations (insurance companies) apply the same gross
receipts test as other organizations to determine whether they
must file Form 990 or 990-EZ. However, section 501(c)(7) and
section 501(c)(15) organizations are also subject to separate
gross receipts tests to determine if they qualify as tax exempt for
the tax year. The following tests use a special definition of gross
receipts for purposes of determining whether these
organizations are exempt for a particular tax year.
Gross receipts when acting as an agent. If a local chapter of
a section 501(c)(8) fraternal organization collects insurance
premiums for its parent lodge and merely sends those premiums
to the parent without asserting any right to use the funds or
otherwise deriving any benefit from them, the local chapter
doesn’t include the premiums in its gross receipts. The parent
lodge reports them instead. The same treatment applies in other
situations in which one organization collects funds merely as an
agent for another.
Section 501(c)(7)
A section 501(c)(7) organization can receive up to 35% of its
gross receipts, including investment income, from sources
outside its membership and remain tax exempt. Part of the 35%
(up to 15% of gross receipts) can be from public use of a social
club's facilities.
Figuring Gross Receipts
Figure gross receipts for Forms 990 and 990-EZ as follows.
Form 990. Gross receipts are the sum of lines 6b (both
columns), 7b (both columns), 8b, 9b, 10b, and 12 (column A) of
Form 990, Part VIII.
“Gross receipts,” for purposes of determining the tax-exempt
status of section 501(c)(7) organizations, are the club's income
from its usual activities and include:
• Charges;
• Admissions;
• Membership fees;
• Dues;
• Assessments; and
• Investment income (such as dividends, rents, and similar
receipts), and normal recurring capital gains on investments.
Form 990-EZ. Gross receipts are the sum of lines 5b, 6c, 7b,
and 9 of Form 990-EZ, Part I.
Example. Organization M reported $50,000 as total revenue
on line 9 of its Form 990-EZ. M added back the costs and
expenses it had deducted on lines 5b ($2,000), 6c ($1,500), and
7b ($500) to its total revenue of $50,000 and determined that its
gross receipts for the tax year were $54,000.
-28-
2022 Instructions for Form 990-EZ
Appendix D: Public Inspection of Returns
Gross receipts for this purpose don’t include:
• Capital contributions (see Regulations section 1.118-1),
• Initiation fees, or
• Unusual amounts of income (such as the sale of the
Some members of the public rely on Form 990 or 990-EZ as the
primary or sole source of information about a particular
organization. How the public perceives an organization in such
cases may be determined by the information presented on its
returns.
clubhouse).
!
CAUTION
College fraternities or sororities or other organizations
that charge membership initiation fees, but not annual
dues, must include initiation fees in their gross receipts.
An organization's completed Form 990 or 990-EZ is available
for public inspection as required by section 6104. Schedule B
(Form 990) is open for public inspection for section 527
organizations filing Form 990 or 990-EZ, and for organizations
filing Form 990-PF. For other organizations that file Form 990 or
990-EZ, the names and addresses of contributors listed on
Schedule B (Form 990) aren’t required to be made available for
public inspection. The instructions for Schedule B (Form 990)
describe which filers for Form 990-EZ are not required to provide
contributor names and addresses. All other information reported
on Schedule B (Form 990), including the amount of
contributions, the description of noncash contributions, and any
other information, is required to be made available for public
inspection unless it clearly identifies the contributor. Form 990-T
filed after August 17, 2006, by a section 501(c)(3) organization
to report any unrelated business income is also available for
public inspection and disclosure.
DRAFT AS OF
September 20, 2022
Section 501(c)(15)
If any section 501(c)(15) insurance company (other than life
insurance) meets both parts of the following test, then the
company can file Form 990 (or Form 990-EZ, if applicable).
1. The company's gross receipts must be equal to or less than
$600,000.
2. The company's premiums must be more than 50% of its
gross receipts.
If the company didn’t meet this test and the company is a
mutual insurance company, then it must meet the Alternate test
to qualify to file Form 990 (or Form 990-EZ, if applicable).
Insurance companies that don’t qualify as tax exempt must file
Form 1120-PC, U.S. Property and Casualty Insurance Company
Income Tax Return; or Form 1120, U.S. Corporation Income Tax
Return, as taxable entities for the year. See Notice 2006-42,
2006-19 I.R.B. 878, available at IRS.gov/irb/2006-19_IRB/
ar08.html.
Alternate test. If any section 501(c)(15) insurance company
(other than life insurance) is a mutual insurance company and it
didn’t meet the above test, then the company must meet both
parts of the following alternate test.
Note. Any annual return required to be filed electronically under
section 6033(n) will be made available by the Secretary to the
public as soon as practicable in a machine-readable format.
Through the IRS
Use Form 4506-A to request a copy of an exempt or political
organization's return, report, notice, or exemption application.
The IRS can provide electronic copies of exempt organization
returns. Requesters can order the complete set (for example, all
Forms 990 and 990-EZ or all Forms 990-PF filed for a year) or a
partial set by state or by month. Complete information, including
the cost, is available on the IRS website. Search Copies of EO
Returns Available at IRS.gov/Charities-Non-Profits/Copies-ofEO-Returns-Available.
1. The company's gross receipts must be equal to or less than
$150,000.
2. The company's premiums must be more than 35% of its
gross receipts.
If the company doesn’t meet either test, then it must file Form
1120 or 1120-PC (if the company isn’t entitled to insurance
reserves) instead of Form 990 or 990-EZ.
The IRS generally can’t disclose portions of an exemption
application relating to trade secrets, etc. The IRS can, however,
disclose the names and addresses of contributors of section 527
organizations filing Form 990 or 990-EZ and for organizations
that file Form 990-PF. For other organizations that file Form 990
or 990-EZ, the names and addresses of contributors aren’t
required to be made available for public inspection. See the
Instructions for Schedule B (Form 990) for more information
about the disclosure of that schedule.
The alternate test doesn’t apply if any employee of the
mutual insurance company or a member of the
CAUTION employee's family is an employee of another company
that is exempt under section 501(c)(15) (or would be exempt if
this provision didn’t apply).
!
Gross receipts. To determine whether a section 501(c)(15)
organization satisfies either of the above tests described in
Appendix C, figure gross receipts by adding:
1. Premiums (including deposits and assessments) without
reduction for return premiums or premiums paid for
reinsurance;
Form 990-T must be made available for public inspection by
both the IRS and section 501(c)(3) organizations under Notice
2008-49, 2008-20 I.R.B. 979.
2. Gross investment income of a non-life insurance company
(as described in section 834(b)); and
A section 527 organization's Form 990 or 990-EZ can only be
requested for tax years beginning after June 30, 2000.
3. Other items that are included in the filer's gross income
under subchapter B, chapter 1, subtitle A, of the Code.
A private foundation's Form 990-PF can only be requested for
tax years beginning after March 13, 2000.
This definition doesn’t, however, include contributions to
capital. For more information, see Notice 2006-42.
Premiums. Premiums consist of all amounts received as a
result of entering into an insurance contract. They are reported
on Form 990, Part VIII, line 2, or on Form 990-EZ, Part I, line 2.
Anti-abuse rule. The anti-abuse rule, found in section 501(c)
(15)(C), explains how gross receipts (including premiums) from
all members of a controlled group are aggregated in figuring the
tests described earlier.
2022 Instructions for Form 990-EZ
A return, report, notice, or exemption application can be
inspected at an IRS office free of charge. Copies of these items
can also be obtained through the organization as discussed in
the following section.
Note. The publicly available data on electronically filed Forms
990 is now available in a machine-readable format through
Amazon Web Services (AWS). The publicly available data
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Application for tax exemption does not include:
doesn't include donor information or other personally identifiable
information.
• Any application for tax exemption filed before July 15, 1987,
Through the Organization
unless the organization filing the application had a copy of
the application on July 15, 1987;
In the case of a tax-exempt organization other than a private
foundation, the name and address of any contributor to the
organization; or
Any material that isn’t available for public inspection under
section 6104.
•
Public inspection and distribution of certain returns of unrelated business income. Section 501(c)(3) organizations that
are required to file Form 990-T after August 17, 2006, must
make Form 990-T available for public inspection under section
6104(d)(1)(A)(ii).
•
DRAFT AS OF
September 20, 2022
Public inspection and distribution of returns and reports
for a political organization. Section 527 political
organizations required to file Form 990 or 990-EZ must, in
general, make their Form 8871, Political Organization Notice of
Section 527 Status; Form 8872, Political Organization Report of
Contributions and Expenditures; Form 990; or Form 990-EZ
available for public inspection in the same manner as annual
information returns of section 501(c) organizations. See Public
inspection and distribution of applications for tax exemption and
annual information returns of tax-exempt organizations next.
Generally, Forms 8871 and 8872 are available for inspection
and printing in the Charities & Nonprofits section of the IRS
website at IRS.gov/Charities-&-Non-Profits.
!
If there is no prescribed application form, see
Regulations section 301.6104(d)-1(b)(3)(ii).
CAUTION
Annual information return includes:
• An exact copy of the Form 990 or 990-EZ filed by a
tax-exempt organization as required by section 6033,
• Any amended return the organization files with the IRS after
•
the date the original return is filed (both the original and
amended return are subject to the public inspection
requirements), and
An exact copy of Form 990-T if one is filed by a 501(c)(3)
organization.
The copy must include all information furnished to the IRS on
Form 990, 990-EZ, or 990-T, as well as all schedules,
attachments, and supporting documents, except for the name
and address of any contributor to the organization. See the
Instructions for Schedule B (Form 990). However, schedules,
attachments, and supporting documents filed with Form 990-T
that don’t relate to the imposition of unrelated business income
tax aren’t required to be made available for public inspection and
copying. See Notice 2008-49.
Annual returns more than 3 years old. An annual
information return doesn’t include any return after the expiration
of 3 years from the date the return is required to be filed
(including any extension of time that has been granted for filing
such return) or is actually filed, whichever is later.
If an organization files an amended return, however, the
amended return must be made available for a period of 3 years
beginning on the date it is filed with the IRS.
Local or subordinate organizations. For rules relating to
annual information returns of local or subordinate organizations,
see Regulations section 301.6104(d)-1(f)(2).
Regional or district offices. A regional or district office is
any office of a tax-exempt organization, other than its principal
office, that has paid employees, whether part time or full time,
whose aggregate number of paid hours a week are normally at
least 120.
A site isn’t considered a regional or district office, however, if:
• The only services provided at the site further exempt
purposes (such as day care, health care, or scientific or
medical research); and
• The site doesn’t serve as an office for management staff,
other than managers who are involved solely in managing
the exempt function activities at the site.
A section 527 political organization (and an organization
TIP filing Form 990-PF) must disclose their Schedule B
(Form 990). See the Instructions for Schedule B (Form
990). The penalties discussed in General Instructions G also
apply to section 527 political organizations (Rev. Rul. 2003-49,
2003-20 I.R.B. 903).
Public inspection and distribution of applications for tax
exemption and annual information returns of tax-exempt
organizations. Under Regulations sections 301.6104(d)-1
through 3, a tax-exempt organization must:
• Make its application for recognition of exemption and its
annual information returns available for public inspection
without charge at its principal, regional, and district offices
during regular business hours;
• Make each annual information return available for a period
of 3 years beginning on the date the return is required to be
filed (determined with regard to any extension of time for
filing) or is actually filed, whichever is later; and
• Provide a copy without charge (for Form 990-T, this
requirement applies only to Forms 990-T filed after August
17, 2006), other than a reasonable fee for reproduction and
actual postage costs, of all or any part of any application or
return required to be made available for public inspection to
any individual who makes a request for such copy in person
or in writing (except as provided in Regulations sections
301.6104(d)-2 and (d)-3).
Definitions
Tax-exempt organization is any organization that is described
in section 501(c) or (d) and is exempt from taxation under
section 501(a). The term “tax-exempt organization” also includes
any section 4947(a)(1) nonexempt charitable trust or nonexempt
private foundation that is subject to the reporting requirements of
section 6033.
Special Rules Relating to Public Inspection
Permissible conditions on public inspection. A
tax-exempt organization:
• Can have an employee present in the room during an
inspection;
• Must allow the individual conducting the inspection to take
notes freely during the inspection; and
• Must allow the individual to photocopy the document at no
charge, if the individual provides photocopying equipment at
the place of inspection.
Application for tax exemption includes:
• Any prescribed application form (such as Form 1023,
1023-EZ, 1024, or 1024-A),
• All documents and statements the IRS requires an applicant
to file with the form,
• Any statement or other supporting document submitted in
support of the application, and
• Any letter or other document issued by the IRS concerning
the application.
-30-
2022 Instructions for Form 990-EZ
Organizations that don’t maintain permanent offices. A
tax-exempt organization with no permanent office:
• Must make its application for tax exemption and its annual
information returns available for inspection at a reasonable
location of its choice;
• Must permit public inspection within a reasonable amount of
time after receiving a request for inspection (normally not
more than 2 weeks) and at a reasonable time of day;
• Can mail, within 2 weeks of receiving the request, a copy of
its application for tax exemption and annual information
returns to the requester instead of allowing an inspection;
and
• Can charge the requester for copying and actual postage
costs only if the requester consents to the charge.
Time and Manner of Fulfilling Written Requests
IF the organization...
THEN the organization...
receives a written request for a must mail the copy of the requested
copy
documents (or the requested parts) within 30
days from the date it receives the request.
mails the copy of the
requested document
is deemed to have provided the copy on the
postmark date or private delivery mark (if
sent by certified or registered mail, the date
of registration or the date of the postmark on
the sender's receipt).
requires payment in advance
is required to provide the copies within 30
days from the date it receives payment.
DRAFT AS OF
September 20, 2022
receives a request or payment is deemed to have received it 7 days after
by mail
the date of the postmark, absent evidence to
the contrary.
An organization that has a permanent office, but has no office
hours, or very limited hours during certain times of the year, must
make its documents available during those periods when office
hours are limited, or not available, as though it were an
organization without a permanent office.
receives a request transmitted is deemed to have received it the day the
by electronic mail or facsimile request is transmitted successfully.
Special Rules Relating to Copies
Time and place for providing copies in response to
requests made in person. A tax-exempt organization must:
• Provide copies of required documents under section
6104(d) in response to a request made in person at its
principal, regional, and district offices during regular
business hours; and
• Provide such copies to a requester on the day the request is
made, except for unusual circumstances (see next).
must notify the requester of the prepayment
policy and the amount due within 7 days from
the date of the request's receipt.
receives consent from an
individual making a request
can provide a copy of the requested
document exclusively by electronic mail (the
material is provided on the date the
organization successfully transmits the
electronic mail).
Request for a copy of parts of a document. A tax-exempt
organization must fulfill a request for a copy of the organization's
entire application for tax exemption or annual information return
or any specific part of its application or return. A request for a
copy of less than the entire application or less than the entire
return must specifically identify the requested part or schedule.
Fees for copies. A tax-exempt organization can charge a
reasonable fee for providing copies. Before the organization
provides the documents, it can require that the individual
requesting copies of the documents pay the fee. If the
organization has provided an individual making a request with
notice of the fee, and the individual doesn’t pay the fee within 30
days, or if the individual pays the fee by check and the check
doesn’t clear upon deposit, the organization can disregard the
request.
Form of payment—(A) Request made in person. If a
tax-exempt organization charges a fee for copying, it must
accept payment by cash and money order for requests made in
person. The organization can accept other forms of payment,
such as credit cards and personal checks.
(B) Request made in writing. If a tax-exempt organization
charges a fee for copying and postage, it must accept payment
by certified check, money order, and either personal check or
credit card for requests made in writing. The organization can
accept other forms of payment.
Avoidance of unexpected fees. Where a tax-exempt
organization doesn’t require prepayment and a requester
doesn’t enclose payment with a request, an organization must
receive consent from a requester before providing copies for
which the fee charged for copying and postage exceeds $20.
Documents to be provided by regional and district
offices. Except as otherwise provided, a regional or district
office of a tax-exempt organization must satisfy the same rules
as the principal office about allowing public inspection and
providing copies of its application for tax exemption and annual
information returns.
A regional or district office isn’t required, however, to make its
annual information return available for inspection or to provide
copies until 30 days after the date the return is required to be
Unusual circumstances. In the case of an in-person
request, where unusual circumstances exist so that fulfilling the
request on the same business day causes an unreasonable
burden to the tax-exempt organization, the organization must
provide the copies no later than the next business day following
the day that the unusual circumstances cease to exist, or the fifth
business day after the date of the request, whichever occurs
first.
Unusual circumstances include:
• Requests received that exceed the organization's daily
capacity to make copies;
• Requests received shortly before the end of regular
business hours that require an extensive amount of copying;
or
• Requests received on a day when the organization's
managerial staff capable of fulfilling the request is
conducting special duties, such as student registration or
attending an off-site meeting or convention, rather than its
regular administrative duties.
Agents for providing copies. For rules relating to use of
agents to provide copies, see Regulations sections
301.6104(d)-1(d)(1)(iii) and 1(d)(2)(ii)(C).
Request for copies in writing. A tax-exempt organization
must honor a written request for a copy of documents (or the
requested part) required under section 6104(d) if the request:
1. Is addressed to a principal, regional, or district office of the
organization, and delivered by mail, electronic mail,
facsimile, or a private delivery service, as defined in section
7502(f); and
2. Sets forth the address to which the copy of the documents
should be sent.
2022 Instructions for Form 990-EZ
receives a written request
without payment or with an
insufficient payment, when
payment in advance is
required
-31-
filed (including any extension of time that is granted for filing
such return) or is actually filed, whichever is later.
requirements for annual returns or exemption applications will be
subject to an additional penalty of $5,000 (section 6685).
Documents Provided by Local and Subordinate
Organizations
Making Applications and Returns Widely Available
A tax-exempt organization isn’t required to comply with a request
for a copy of its application for tax exemption or an annual
information return if the organization has made the requested
document widely available (see below).
Applications for tax exemption. Except as otherwise
provided, a tax-exempt organization that didn’t file its own
application for tax exemption (because it is a local or
subordinate organization covered by a group exemption letter)
must, upon request, make available for public inspection, or
provide copies of, the application submitted to the IRS by the
central or parent organization to obtain the group exemption
letter and those documents that were submitted by the central or
parent organization to include the local or subordinate
organization in the group exemption letter.
However, if the central or parent organization submits to the
IRS a list or directory of local or subordinate organizations
covered by the group exemption letter, the local or subordinate
organization is required to provide only the application for the
group exemption ruling and the pages of the list or directory that
specifically refer to it. The local or subordinate organization must
permit public inspection, or comply with a request for copies
made in person, within a reasonable amount of time (normally
not more than 2 weeks) after receiving a request made in person
for public inspection or copies and at a reasonable time of day.
See Regulations section 301.6104(d)-1(f) for further information.
Annual information returns. A local or subordinate
organization that doesn’t file its own annual information return
(because it is affiliated with a central or parent organization that
files a group return) must, upon request, make available for
public inspection, or provide copies of, the group returns filed by
the central or parent organization.
However, if the group return includes separate schedules for
each local or subordinate organization included in the group
return, the local or subordinate organization receiving the
request can omit any schedules relating only to other
organizations included in the group return.
The local or subordinate organization must permit public
inspection, or comply with a request for copies made in person,
within a reasonable amount of time (normally not more than 2
weeks) after receiving a request made in person for public
inspection or copies and at a reasonable time of day.
In a case where the requester seeks inspection, the local or
subordinate organization can mail a copy of the applicable
documents to the requester within the same time period instead
of allowing an inspection. In such a case, the organization can
charge the requester for copying and actual postage costs only if
the requester consents to the charge.
If the local or subordinate organization receives a written
request for a copy of its annual information return, it must fulfill
the request by providing a copy of the group return in the time
and manner specified in Request for copies in writing, earlier.
The requester has the option of requesting from the central or
parent organization, at its principal office, inspection or copies of
group returns filed by the central or parent organization. The
central or parent organization must fulfill such requests in the
time and manner specified in Special Rules Relating to Public
Inspection and Special Rules Relating to Copies, earlier.
Failure to comply. Any person who doesn’t comply with the
public inspection requirements will be assessed a penalty of $20
for each day that inspection wasn’t permitted, up to a maximum
of $11,000 for each return. The penalties for failure to comply
with the public inspection requirements for applications are the
same as those for annual returns, except that the $11,000
limitation doesn’t apply (sections 6652(c)(1)(C) and (D)). Any
person who willfully fails to comply with the public inspection
DRAFT AS OF
September 20, 2022
An organization that makes its application for tax exemption
and/or annual information return widely available must
nevertheless make the document available for public inspection
as required under Regulations section 301.6104(d)-1(a).
A tax-exempt organization makes its application for tax
exemption and/or an annual information return widely available if
the organization complies with the Internet posting requirements
and the notice requirements given next.
Internet posting. A tax-exempt organization can make its
application for tax exemption and/or an annual information return
widely available by posting the document on a web page that the
tax-exempt organization establishes and maintains or by having
the document posted, as part of a database of similar
documents of other tax-exempt organizations, on a web page
established and maintained by another entity. The document will
be considered widely available only if:
• The web page through which it is available clearly informs
readers that the document is available and provides
instructions for downloading it;
• The document is posted in a format that, when accessed,
downloaded, viewed, and printed in hard copy, exactly
reproduces the image of the application for tax exemption or
annual information return as it was originally filed with the
IRS, except for any information permitted by statute to be
withheld from public disclosure; and
• Any individual with access to the Internet can access,
download, view, and print the document without special
computer hardware or software required for that format
(other than software that is readily available to members of
the public without payment of any fee) and without payment
of a fee to the tax-exempt organization or to another entity
maintaining the web page.
Reliability and accuracy. In order for the document to be
widely available through an Internet posting, the entity
maintaining the web page must have procedures for ensuring
the reliability and accuracy of the document that it posts on the
page and must take reasonable precautions to prevent
alteration, destruction, or accidental loss of the document when
posted on its page. In the event that a posted document is
altered, destroyed, or lost, the entity must correct or replace the
document.
Notice requirement. If a tax-exempt organization has made
its application for tax exemption and/or an annual information
return widely available, it must notify any individual requesting a
copy where the documents are available (including the address
on the web page, if applicable). If the request is made in person,
the organization must provide such notice to the individual
immediately. If the request is made in writing, the notice must be
provided within 7 days of receiving the request.
Tax-Exempt Organization Subject to Harassment
Campaign
If the Office of Associate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment Taxes) (EEE)
determines that the organization is being harassed, a
tax-exempt organization isn’t required to comply with any
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2022 Instructions for Form 990-EZ
or was such an organization at any time during a 5-year period
ending on the day of the excess benefit transaction.
request for copies that it reasonably believes is part of a
harassment campaign.
Whether a group of requests constitutes a harassment
campaign depends on the relevant facts and circumstances,
such as:
• A sudden increase in requests,
• An extraordinary number of requests by form letters or
similarly worded correspondence,
• Hostile requests,
• Evidence showing bad faith or deterrence of the
organization's exempt purpose,
• Prior provision of the requested documents to the purported
harassing group, and
• A demonstration that the organization routinely provides
copies of its documents upon request.
An applicable tax-exempt organization doesn’t include:
• A private foundation as defined in section 509(a),
• A governmental entity that is exempt from (or not subject to)
taxation without regard to section 501(a) or relieved from
filing an annual return under Regulations section
1.6033-2(g)(6), and
Certain foreign organizations.
DRAFT AS OF
September 20, 2022
•
An organization isn’t treated as a section 501(c)(3), 501(c)(4),
or 501(c)(29) organization for any period covered by a final
determination that the organization wasn’t tax exempt under
section 501(a), so long as the determination wasn’t based on
private inurement or one or more excess benefit transactions.
A tax-exempt organization can disregard any request for
copies of all or part of any document beyond the first two
received within any 30-day period or the first four received within
any 1-year period from the same individual or the same address,
regardless of whether the Office of Associate Chief Counsel
(EEE) has determined that the organization is subject to a
harassment campaign.
Disqualified Person
The vast majority of section 501(c)(3), 501(c)(4), or 501(c)(29)
organization employees and independent contractors won’t be
affected by these rules. Only the few influential persons within
these organizations are covered by these rules when they
receive benefits, such as compensation, fringe benefits, or
contract payments. The IRS calls this class of covered
individuals disqualified persons.
A tax-exempt organization can apply for a determination that
it is the subject of a harassment campaign and that compliance
with requests that are part of the campaign wouldn’t be in the
public interest by submitting a signed application to the Office of
Associate Chief Counsel (EEE). See Rev. Proc. 2022-1, 2022-1
I.R.B. 1, available at IRS.gov/irb/2022-01_IRB.
A “disqualified person,” regarding any transaction, is any
person who was in a position to exercise substantial influence
over the affairs of the applicable tax-exempt organization at any
time during a 5-year period ending on the date of the transaction.
Persons who hold certain powers, responsibilities, or interests
are among those who are in a position to exercise substantial
influence over the affairs of the organization. This would include,
for example, voting members of the governing body, and
persons holding the power of:
• Presidents, chief executive officers, or chief operating
officers; and
• Treasurers and chief financial officers.
In addition, the organization can suspend compliance with
any request it reasonably believes to be part of the harassment
campaign until it receives a response to its application for a
harassment campaign determination. However, if the Office of
Associate Chief Counsel (EEE) determines that the organization
didn’t have a reasonable basis for requesting a determination
that it was subject to a harassment campaign or reasonable
belief that a request was part of the campaign, the officer,
director, trustee, employee, or other responsible individual of the
organization remains liable for any penalties for not providing the
copies in a timely fashion. See Regulations section
301.6104(d)-3.
A disqualified person also includes certain family members of
a disqualified person, and 35% controlled entities of a
disqualified person.
The following persons are considered disqualified persons for
the following organizations, along with certain family members
and 35% controlled entities associated with them.
• For a transaction involving a donor advised fund, a donor or
donor advisor of that donor advised fund.
• For a donor advised fund sponsoring organization, an
investment advisor of the sponsoring organization.
• A supported organization of a section 509(a)(3) supporting
organization, and the disqualified persons of the section
509(a)(3) supporting organization.
Appendix E: Section 4958 Excess Benefit
Transactions
The intermediate sanction regulations are important to the
exempt organization community as a whole, and for ensuring
compliance in this area. The rules provide a roadmap by which
an organization can steer clear of situations that may give rise to
inurement.
Under section 4958, any disqualified person who benefits
from an excess benefit transaction with an applicable
tax-exempt organization is liable for a 25% tax on the excess
benefit. The disqualified person is also liable for a 200% tax on
the excess benefit if the excess benefit isn’t corrected by a
certain date. Also, organization managers who participate in an
excess benefit transaction knowingly, willfully, and without
reasonable cause are liable for a 10% tax on the excess benefit,
not to exceed $20,000 for all participating managers on each
transaction.
See the Instructions for Form 4720, Schedule I, for more
information regarding these disqualified persons.
Who isn’t a disqualified person? The rules also clarify which
persons aren’t considered to be in a position to exercise
substantial influence over the affairs of an organization. They
include:
• An employee who receives benefits that total less than the
highly compensated amount ($120,000 in 2015–2018,
$125,000 in 2019, $130,000 in 2020–2021, and $135,000 in
2022) and who doesn’t hold the executive or voting powers
just mentioned, isn’t a family member of a disqualified
person, and isn’t a substantial contributor;
• Tax-exempt organizations described in section 501(c)(3);
and
Applicable Tax-Exempt Organization
These rules only apply to certain applicable section 501(c)(3),
501(c)(4), and 501(c)(29) organizations. An “applicable
tax-exempt organization” is a section 501(c)(3), 501(c)(4), or
501(c)(29) organization that is tax exempt under section 501(a),
2022 Instructions for Form 990-EZ
-33-
• Section 501(c)(4) organizations engaging in transactions
To determine whether an excess benefit transaction has
occurred, all consideration and benefits exchanged between a
disqualified person and the applicable tax-exempt organization,
and all entities it controls, are taken into account.
with other section 501(c)(4) organizations.
Who else can be considered a disqualified person? Other
persons not described above can also be considered
disqualified persons, depending on all the relevant facts and
circumstances.
Facts and circumstances tending to show substantial
influence.
• The person founded the organization.
• The person is a substantial contributor to the organization
under the section 507(d)(2)(A) definition, only taking into
account contributions to the organization for the past 5
years.
• The person's compensation is primarily based on revenues
derived from activities of the organization that the person
controls.
• The person has or shares authority to control or determine a
substantial portion of the organization's capital
expenditures, operating budget, or compensation for
employees.
• The person manages a discrete segment or activity of the
organization that represents a substantial portion of the
activities, assets, income, or expenses of the organization,
as compared to the organization as a whole.
• The person owns a controlling interest (measured by either
vote or value) in a corporation, partnership, or trust that is a
disqualified person.
• The person is a nonstock organization controlled directly or
indirectly by one or more disqualified persons.
For purposes of determining the value of economic benefits,
the value of property, including the right to use property, is the
FMV. FMV is the price at which property, or the right to use
property, would change hands between a willing buyer and a
willing seller, neither being under any compulsion to buy, sell, or
transfer property, or the right to use property, and both having
reasonable knowledge of relevant facts.
DRAFT AS OF
September 20, 2022
Donor advised funds. For a donor advised fund, an excess
benefit transaction includes a grant, loan, compensation, or
similar payment from the fund to a:
• Donor or donor advisor,
• Family member of a donor or donor advisor,
• 35% controlled entity of a donor or donor advisor, or
• 35% controlled entity of a family member of a donor or
donor advisor.
For these transactions, the excess benefit is defined as the
amount of the grant, loan, compensation, or similar payment. For
additional information, see the Instructions for Form 4720.
Supporting organizations. For any supporting organization
defined in section 509(a)(3), an excess benefit transaction
includes grants, loans, compensation, or similar payment
provided by the supporting organization to a:
• Substantial contributor,
• Family member of a substantial contributor,
• 35% controlled entity of a substantial contributor, and
• 35% controlled entity of a family member of a substantial
contributor.
Facts and circumstances tending to show no substantial
influence.
• The person is an independent contractor whose sole
relationship to the organization is providing professional
advice (without having decision-making authority) for
transactions from which the independent contractor won’t
economically benefit.
• The person has taken a vow of poverty.
• Any preferential treatment the person receives based on the
size of the person's donation is also offered to others
making comparable widely solicited donations.
• The direct supervisor of the person isn’t a disqualified
person.
• The person doesn’t participate in any management
decisions affecting the organization as a whole or a discrete
segment of the organization that represents a substantial
portion of the activities, assets, income, or expenses of the
organization, as compared to the organization as a whole.
Additionally, an excess benefit transaction includes any loans
provided by the supporting organization to a disqualified person
(other than an organization described in section 509(a)(1), (2), or
(4)).
A “substantial contributor” is any person who contributed or
bequeathed an aggregate of more than $5,000 to the
organization, if that amount is more than 2% of the total
contributions and bequests received by the organization before
the end of the tax year of the organization in which the
contribution or bequest is received by the organization from such
person. In the case of a trust, a substantial contributor also
means the creator of the trust.
The excess benefit for substantial contributors and parties
related to those contributors includes the amount of the grant,
loan, compensation, or similar payment. For additional
information, see the Instructions for Form 4720.
What about persons who staff affiliated organizations? In
the case of multiple affiliated organizations, the determination of
whether a person has substantial influence is made separately
for each applicable tax-exempt organization. A person can be a
disqualified person for more than one organization in the same
transaction.
When does an excess benefit transaction usually occur?
An excess benefit transaction occurs on the date the disqualified
person receives the economic benefit from the organization for
federal income tax purposes. However, when a single
contractual arrangement provides for a series of compensation
payments or other payments to a disqualified person during the
disqualified person's tax year, any excess benefit transaction for
these payments occurs on the last day of the disqualified
person's tax year.
In the case of the transfer of property subject to a substantial
risk of forfeiture, or in the case of rights to future compensation
or property, the transaction occurs on the date the property, or
the rights to future compensation or property, isn’t subject to a
substantial risk of forfeiture. Where the disqualified person elects
to include an amount in gross income in the tax year of transfer
under section 83(b), the excess benefit transaction occurs on
the date the disqualified person receives the economic benefit
for federal income tax purposes.
Excess Benefit Transaction
An “excess benefit transaction” is generally a transaction in
which an economic benefit is provided by an applicable
tax-exempt organization, directly or indirectly, to or for the use of
any disqualified person, and the value of the economic benefit
provided by the applicable tax-exempt organization exceeds the
value of the consideration (including the performance of
services) received for providing such benefit, but see the special
rules later for donor advised funds and supporting organizations.
An excess benefit transaction can also occur when a disqualified
person embezzles from the exempt organization.
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2022 Instructions for Form 990-EZ
• The disqualified person reports the benefit as income on the
Section 4958 applies only to post-September 1995
transactions. Section 4958 applies the general rules to excess
benefit transactions occurring on or after September 14, 1995.
Section 4958 doesn’t apply to any transaction occurring under a
written contract that was binding on September 13, 1995, and at
all times before the transaction occurs. The special rules
relevant to transactions with donor advised funds and supporting
organizations apply to transactions occurring after August 17,
2006, except that taxes on certain transactions between
supporting organizations and their substantial contributors apply
to transactions occurring on or after July 25, 2006.
person's original Form 1040 or 1040-SR, or on an amended
form filed before the start of an IRS examination.
Exception. To the extent the economic benefit is excluded
from the disqualified person's gross income for income tax
purposes, the applicable tax-exempt organization isn’t required
to indicate its intent to provide an economic benefit as
compensation for services (for example, employer-provided
health benefits, and contributions to qualified plans under
section 401(a)).
DRAFT AS OF
September 20, 2022
What benefits are disregarded? The following economic
benefits are disregarded for purposes of section 4958.
• Nontaxable fringe benefits; for example, an economic
benefit that is excluded from income under section 132.
• Benefits to volunteers; for example, an economic benefit
provided to a volunteer for the organization if the benefit is
provided to the general public in exchange for a
membership fee or contribution of $75 or less per year.
• Benefits to members or donors; for example, an economic
benefit provided to a member of an organization due to the
payment of a membership fee, or to a donor as a result of a
deductible contribution, if a significant number of
nondisqualified persons make similar payments or
contributions and are offered a similar economic benefit.
• Benefits to a charitable beneficiary; for example, an
economic benefit provided to a person solely as a member
of a charitable class that the applicable tax-exempt
organization intends to benefit as part of the
accomplishment of its exempt purpose.
• Benefits to a governmental unit; for example, a transfer of an
economic benefit to or for the use of a governmental unit, as
defined in section 170(c)(1), if exclusively for public
purposes.
What Is Reasonable Compensation?
“Reasonable compensation” is the valuation standard that is
used to determine if there is an excess benefit in the exchange
of a disqualified person's services for compensation.
Reasonable compensation is the value that would ordinarily
be paid for like services by like enterprises under like
circumstances. This is the section 162 standard that will apply in
determining the reasonableness of compensation. The fact that
a bonus or revenue-sharing arrangement is subject to a cap is a
relevant factor in determining the reasonableness of
compensation.
For determining the reasonableness of compensation, all
items of compensation provided by an applicable tax-exempt
organization in exchange for the performance of services are
taken into account in determining the value of compensation
(except for certain economic benefits that are disregarded, as
discussed later in What benefits are disregarded). Items of
compensation include the following.
• All forms of cash and noncash compensation, including
salary, fees, bonuses, severance payments, and deferred
and noncash compensation.
• The payment of liability insurance premiums for, or the
payment or reimbursement by, the organization of taxes or
certain expenses under section 4958, unless excludable
from income as a de minimis fringe benefit under section
132(a)(4). (A similar rule applies in the private foundation
area.) Inclusion in compensation for purposes of
determining reasonableness under section 4958 doesn’t
control inclusion in income for income tax purposes.
• All other compensatory benefits, whether or not included in
gross income for income tax purposes.
• Taxable and nontaxable fringe benefits, except fringe
benefits described in section 132.
• Foregone interest on loans.
Is there an exception for initial contracts? Section 4958
doesn’t apply to any fixed payment made to a person under an
initial contract. This is a very important exception, since it would
potentially apply, for example, to all initial contracts with new,
previously unrelated officers and contractors.
An initial contract is a binding written contract between an
applicable tax-exempt organization and a person who wasn’t a
disqualified person immediately before entering into the
contract.
A fixed payment is an amount of cash or other property
specified in the contract, or determined by a fixed formula that is
specified in the contract, which is to be paid or transferred in
exchange for the provision of specified services or property.
A fixed formula can, in general, incorporate an amount that
depends upon future specified events or contingencies, as long
as no one has discretion when figuring the amount of a payment
or deciding whether to make a payment (such as a bonus).
Treatment as new contract. A binding written contract,
providing that it can be terminated or canceled by the applicable
tax-exempt organization without the other party's consent
(except as a result of substantial nonperformance) and without
substantial penalty, is treated as a new contract, as of the
earliest date that any termination or cancellation would be
effective. Also, a contract in which there is a material change,
which includes an extension or renewal of the contract (except
for an extension or renewal resulting from the exercise of an
option by the disqualified person), or a more than incidental
change to the amount payable under the contract, is treated as a
new contract as of the effective date of the material change.
Treatment as a new contract can cause the contract to fall
outside the initial contract exception, and it thus would be tested
under the FMV standards of section 4958.
Written intent required to treat benefits as
compensation. An economic benefit isn’t treated as
consideration for the performance of services unless the
organization providing the benefit clearly indicates its intent to
treat the benefit as compensation when the benefit is paid.
An applicable tax-exempt organization (or entity that it
controls) is treated as clearly indicating its intent to provide an
economic benefit as compensation for services only if the
organization provides written substantiation that is
contemporaneous with the transfer of the economic benefits
under consideration. Ways to provide contemporaneous written
substantiation of its intent to provide an economic benefit as
compensation include:
• The organization produces a signed written employment
contract;
• The organization reports the benefit as compensation on an
original Form W-2, 1099, 990, or 990-EZ, or on an amended
form filed before the start of an IRS examination; or
2022 Instructions for Form 990-EZ
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benefits as timely and as well as possible. If an organization
doesn’t satisfy the requirements of the rebuttable presumption of
reasonableness, a facts-and-circumstances approach will be
followed, using established rules for determining
reasonableness of compensation and benefit deductions in a
manner similar to the established procedures for section 162
business expenses.
Rebuttable Presumption of Reasonableness
Payments under a compensation arrangement are presumed to
be reasonable and the transfer of property (or right to use
property) is presumed to be at FMV if the following three
conditions are met.
1. The transaction is approved by an authorized body of the
organization (or an entity it controls) that is composed of
individuals who don’t have a conflict of interest concerning
the transaction.
Section 4958 Taxes
DRAFT AS OF
September 20, 2022
Tax on disqualified persons. An excise tax equal to 25% of
the excess benefit is imposed on each excess benefit
transaction between an applicable tax-exempt organization and
a disqualified person. The disqualified person who benefited
from the transaction is liable for the tax. If the 25% tax is
imposed and the excess benefit transaction isn’t corrected within
the tax period, an additional excise tax equal to 200% of the
excess benefit is imposed.
If a disqualified person makes a payment of less than the full
correction amount, the 200% tax is imposed only on the unpaid
portion of the correction amount. If more than one disqualified
person received an excess benefit from an excess benefit
transaction, all such disqualified persons are jointly and
severally liable for the taxes.
To avoid the imposition of the 200% tax, a disqualified person
must correct the excess benefit transaction during the tax
period. The tax period begins on the date the transaction occurs
and ends on the earlier of the date the statutory notice of
deficiency is issued or the section 4958 taxes are assessed.
This 200% tax can be abated if the excess benefit transaction
subsequently is corrected during a 90-day correction period.
2. Before making its determination, the authorized body
obtained and relied upon appropriate data as to
comparability. There is a special safe harbor for small
organizations. If the organization has gross receipts of less
than $1 million, appropriate comparability data includes
data on compensation paid by three comparable
organizations in the same or similar communities for similar
services.
3. The authorized body adequately documents the basis for its
determination concurrently with making that determination.
The documentation should include:
a. The terms of the approved transaction and the date
approved;
b. The members of the authorized body who were present
during debate on the transaction that was approved and
those who voted on it;
c. The comparability data obtained and relied upon by the
authorized body and how the data was obtained;
d. Any actions by a member of the authorized body having
a conflict of interest; and
Tax on organization managers. An excise tax equal to 10% of
the excess benefit may be imposed on the participation of an
organization manager in an excess benefit transaction between
an applicable tax-exempt organization and a disqualified person.
This tax, which can’t exceed $20,000 for any single transaction,
is only imposed if the 25% tax is imposed on the disqualified
person, the organization manager knowingly participated in the
transaction, and the manager's participation was willful and not
due to reasonable cause. There is also joint and several liability
for this tax. An organization manager may be liable for the tax on
both disqualified persons and on organization managers in
appropriate circumstances.
An “organization manager” is any officer, director, or trustee
of an applicable tax-exempt organization, or any individual
having powers or responsibilities similar to officers, directors, or
trustees of the organization, regardless of title. An organization
manager isn’t considered to have participated in an excess
benefit transaction where the manager has opposed the
transaction in a manner consistent with the fulfillment of the
manager's responsibilities to the organization. For example, a
director who votes against giving an excess benefit would
ordinarily not be subject to this tax.
A person participates in a transaction knowingly if the person
has actual knowledge of sufficient facts so that, based solely
upon such facts, the transaction would be an excess benefit
transaction. Knowing doesn’t mean having reason to know. The
organization manager ordinarily won’t be considered knowing if,
after full disclosure of the factual situation to an appropriate
professional, the organization manager relied on the
professional's reasoned written opinion on matters within the
professional's expertise or if the manager relied on the fact that
the requirements for the rebuttable presumption of
reasonableness have been satisfied. Participation by an
organization manager is willful if it is voluntary, conscious, and
intentional. An organization manager's participation is due to
reasonable cause if the manager has exercised responsibility on
e. Documentation of the basis for the determination before
the later of the next meeting of the authorized body or
60 days after the final actions of the authorized body are
taken, and approval of records as reasonable, accurate,
and complete within a reasonable time thereafter.
Special rebuttable presumption rule for nonfixed payments. As a general rule, in the case of a nonfixed payment, no
rebuttable presumption arises until the exact amount of the
payment is determined, or a fixed formula for figuring the
payment is specified, and the three requirements creating the
presumption have been satisfied. However, if the authorized
body approves an employment contract with a disqualified
person that includes a nonfixed payment (for example,
discretionary bonus) with a specified cap on the amount, the
authorized body can establish a rebuttable presumption as to the
nonfixed payment when the employment contract is entered into
by, in effect, assuming that the maximum amount payable under
the contract will be paid, and satisfying the requirements giving
rise to the rebuttable presumption for that maximum amount.
An IRS challenge to the presumption of reasonableness.
The IRS can refute the presumption of reasonableness only if it
develops sufficient contrary evidence to rebut the probative
value of the comparability data relied upon by the authorized
body. This provision gives taxpayers added protection if they
faithfully find and use contemporaneous persuasive
comparability data when they provide the benefits.
Organizations that don’t establish a presumption of reasonableness. An organization can still comply with section
4958 even if it didn’t establish a presumption of reasonableness.
In some cases, an organization may find it impossible or
impracticable to fully implement each step of the rebuttable
presumption process described above. In such cases, the
organization should try to implement as many steps as possible,
in whole or in part, to substantiate the reasonableness of
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2022 Instructions for Form 990-EZ
behalf of the organization with ordinary business care and
prudence.
Revocation of Exemption and Section 4958
Section 4958 doesn’t affect the substantive standards for tax
exemption under section 501(c)(3), 501(c)(4), or 501(c)(29),
including the requirements that the organization be organized
and operated exclusively for exempt purposes, and that no part
of its net earnings inure to the benefit of any private shareholder
or individual. The legislative history indicates that in most
instances, the imposition of this intermediate sanction will be in
lieu of revocation. The IRS has indicated that the following
factors will be considered (among other facts and
circumstances) in determining whether to revoke an applicable
tax-exempt organization's exemption status where an excess
benefit transaction has occurred.
• The size and scope of the organization's regular and
ongoing activities that further exempt purposes before and
after the excess benefit transaction or transactions
occurred.
• The size and scope of the excess benefit transaction or
transactions (collectively, if more than one) in relation to the
size and scope of the organization's regular and ongoing
activities that further exempt purposes.
• Whether the organization has been involved in multiple
excess benefit transactions with one or more persons.
• Whether the organization has implemented safeguards that
are reasonably figured to prevent excess benefit
transactions.
• Whether the excess benefit transaction has been corrected,
or the organization has made good faith efforts to seek
correction from the disqualified person(s) who benefited
from the excess benefit transaction.
Correcting an Excess Benefit Transaction
A disqualified person corrects an excess benefit transaction by
undoing the excess benefit to the extent possible, and by taking
any additional measures necessary to place the organization in
a financial position not worse than that in which it would be if the
disqualified person were dealing under the highest fiduciary
standards. The organization isn’t required to rescind the
underlying agreement; however, the parties may need to modify
an ongoing contract for future payments.
DRAFT AS OF
September 20, 2022
A disqualified person corrects an excess benefit by making a
payment in cash or cash equivalents equal to the correction
amount to the applicable tax-exempt organization. The
correction amount equals the excess benefit plus the interest on
the excess benefit; the interest rate can be no lower than the
applicable federal rate. There is an anti-abuse rule to prevent the
disqualified person from effectively transferring property other
than cash or cash equivalents.
Exception. For a correction of an excess benefit transaction
described in Donor advised funds, earlier, no amount repaid in a
manner prescribed by the Secretary can be held in a donor
advised fund.
Property. With the agreement of the applicable tax-exempt
organization, a disqualified person can make a payment by
returning the specific property previously transferred in the
excess benefit transaction. The return of the property is
considered a payment of cash (or cash equivalent) equal to the
lesser of:
• The FMV of the property on the date the property is returned
to the organization, or
• The FMV of the property on the date the excess benefit
transaction occurred.
Appendix F: Forms and Publications To File or
Use
How To Get Forms and Publications
Insufficient payment. If the payment resulting from the
return of the property is less than the correction amount, the
disqualified person must make an additional cash payment to
the organization equal to the difference.
Excess payment. If the payment resulting from the return of
the property exceeds the correction amount described earlier,
the organization can make a cash payment to the disqualified
person equal to the difference.
Internet. You can access the IRS website at IRS.gov 24
hours a day, 7 days a week to:
• Download forms, including talking tax forms, instructions,
•
•
•
•
Churches and Section 4958
•
The regulations make it clear that the IRS will apply the
procedures of section 7611 when initiating and conducting any
inquiry or examination into whether an excess benefit
transaction has occurred between a church and a disqualified
person.
•
How To Get Tax Help
If you have questions about a tax issue, need help preparing
your tax return, or want to download free publications, forms, or
instructions, go to IRS.gov and find resources that can help you
right away.
Revenue-Sharing Transactions
Proposed intermediate sanction regulations were issued in
1998. The proposed regulations had special provisions covering
“any transaction in which the amount of any economic benefit
provided to or for the use of a disqualified person is determined
in whole or in part by the revenues of one or more activities of
the organization,” so-called revenue-sharing transactions.
Rather than setting forth additional rules on revenue-sharing
transactions, the final regulations reserve this section.
Consequently, until the IRS issues new regulations for this
reserved section on revenue-sharing transactions, these
transactions will be evaluated under the general rules (for
example, the FMV standards) that apply to all contractual
arrangements between applicable tax-exempt organizations and
their disqualified persons.
2022 Instructions for Form 990-EZ
and publications;
Order IRS products online;
Research your tax question online;
Search publications online by topic or keyword;
Use the online Internal Revenue Code, regulations, or other
official guidance;
View Internal Revenue Bulletins (IRBs) published in the last
few years; and
Sign up to receive local and national tax news by email.
Coronavirus. Go to IRS.gov/Coronavirus for links to
information on the impact of the coronavirus, as well as tax relief
available for individuals and families, small and large
businesses, and tax-exempt organizations.
Getting answers to your tax questions. On IRS.gov, you can
get up-to-date information on current events and changes in tax
law.
• IRS.gov/Help: A variety of tools to help you get answers to
some of the most common tax questions.
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• IRS.gov/ITA: The Interactive Tax Assistant, a tool that will
•
•
•
Getting tax publications and instructions in eBook format.
You can also download and view popular tax publications and
instructions (including the Instructions for Form 1040) on mobile
devices as eBooks at IRS.gov/eBooks.
ask you questions and, based on your input, provide
answers on a number of tax law topics.
IRS.gov/Forms: Find forms, instructions, and publications.
You will find details on 2022 tax changes and hundreds of
interactive links to help you find answers to your questions.
Online EIN Application (IRS.gov/EIN) helps you get an
employer identification number (EIN).
You may also be able to access tax law information in your
electronic filing software.
Note. IRS eBooks have been tested using Apple’s iBooks for
iPad. Our eBooks haven’t been tested on other dedicated eBook
readers, and eBook functionality may not operate as intended.
DRAFT AS OF
September 20, 2022
Phone. If you have questions and/or need help completing
Form 990 or 990-EZ, please call 877-829-5500. This toll-free
telephone service is available Monday through Friday.
Tax reform. Tax reform legislation affects individuals,
businesses, and tax-exempt and government entities. Go to
IRS.gov/TaxReform for information and updates on how this
legislation affects your taxes.
Email subscription. The IRS has established a
subscription-based email service for tax professionals and
representatives of tax-exempt organizations. Subscribers will
receive periodic updates from the IRS regarding exempt
organization tax law and regulations, available services, and
other information. To subscribe, visit IRS.gov/Charities-&-NonProfits/Subscribe-to-Exempt-Organization-Update.
Getting tax forms and publications. Go to IRS.gov/Forms to
view, download, or print all the forms, instructions, and
publications you may need. Or, you can go to IRS.gov/
OrderForms to place an order.
Other Forms That May Be Required
Schedule A (Form 990)
Schedule B (Form 990)
Schedule C (Form 990)
Schedule E (Form 990)
Schedule G (Form 990)
Schedule L (Form 990)
Schedule N (Form 990)
Schedule O (Form 990)
Forms W-2 and W-3
Form W-9
Form 720
Form 926
Form 940
Form 941
Form 943
Form 990-T
Form 990-W
Form 1023
Form 1023-EZ
Form 1024
Form 1024-A
Form 1040
Form 1040-SR
Form 1041
Form 1096
Form 1098 series
Public Charity Status and Public Support
Schedule of Contributors
Political Campaign and Lobbying Activities
Schools
Supplemental Information Regarding Fundraising or Gaming Activities
Transactions With Interested Persons
Liquidation, Termination, Dissolution, or Significant Disposition of Assets
Supplemental Information to Form 990 or 990-EZ
Wage and Tax Statement; and Transmittal of Wage and Tax Statements
Request for Taxpayer Identification Number and Certification
Quarterly Federal Excise Tax Return
Return by a U.S. Transferor of Property to a Foreign Corporation
Employer's Annual Federal Unemployment (FUTA) Tax Return
Employer's QUARTERLY Federal Tax Return. Used to report social security, Medicare, and income
taxes withheld by an employer and social security and Medicare taxes paid by an employer.
Employer's Annual Federal Tax Return for Agricultural Employees
Exempt Organization Business Income Tax Return. Filed separately for organizations with gross
income of $1,000 or more from business unrelated to the organization's exempt purpose. Form
990-T is also filed to pay the section 6033(e)(2) proxy tax. For Form 990, see Part V, line 3, and its
instructions; for Form 990-EZ, see Part V, line 35, and its instructions.
Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations
Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code
Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal
Revenue Code
Application for Recognition of Exemption Under Section 501(a)
Application for Recognition of Exemption Under Section 501(c)(4) of the Internal Revenue Code
U.S. Individual Income Tax Return
U.S. Tax Return for Seniors
U.S. Income Tax Return for Estates and Trusts. Required of section 4947(a)(1) nonexempt
charitable trusts that also file Form 990 or 990-EZ. However, if such a trust doesn’t have any taxable
income under subtitle A of the Code, it can file Form 990 or 990-EZ, and doesn’t have to file Form
1041 to meet its section 6012 filing requirement. If this condition is met, complete Form 990 or
990-EZ, and don’t file Form 1041.
Annual Summary and Transmittal of U.S. Information Returns
Information returns to report mortgage interest, student loan interest, qualified tuition and related
expenses received, and a contribution of a qualified vehicle that has a claimed value of more than
$500.
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2022 Instructions for Form 990-EZ
Form 1099 series
Information returns to report acquisitions or abandonments of secured property; proceeds from
broker and barter exchange transactions; cancellation of debt; dividends and distributions; certain
government and state qualified tuition program payments; taxable distributions from cooperatives;
interest payments; payments of long-term care and accelerated death benefits; miscellaneous
income payments; nonemployee compensation; distributions from an HSA, Archer MSA, or
Medicare Advantage MSA; original issue discount; distributions from pensions, annuities, retirement
or profit-sharing plans, IRAs, insurance contracts, etc.; and proceeds from real estate transactions.
Also, use certain of these returns to report amounts that were received as a nominee on behalf of
another person.
U.S. Income Tax Return for Certain Political Organizations
Application To Adopt, Change, or Retain a Tax Year
Power of Attorney and Declaration of Representative
Application for Change in Accounting Method
Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts
Request for Copy of Tax Return
Request for a Copy of Exempt or Political Organization IRS Form
Depreciation and Amortization
Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code
Information Return of U.S. Persons With Respect to Certain Foreign Corporations
Annual Return/Report of Employee Benefit Plan. Employers who maintain pension, profit-sharing, or
other funded deferred compensation plans are generally required to file Form 5500. This
requirement applies whether or not the plan is qualified under the Internal Revenue Code and
whether or not a deduction is claimed for the current tax year. Available at EFAST.dol.gov/
welcome.html.
Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income
Tax
Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures
To Influence Legislation
Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and
Other Returns
Information Return for Tax-Exempt Private Activity Bond Issues
Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption From
Employer Social Security and Medicare Taxes
Donee Information Return. Required of the donee of charitable deduction property who sells,
exchanges, or otherwise disposes of donated property within 3 years after receiving it. The form is
also required of any successor donee who disposes of charitable deduction property within 3 years
after the date that the donor gave the property to the original donee. It doesn’t matter who gave the
property to the successor donee. It may have been the original donee or another successor donee.
Noncash Charitable Contributions
Report of Cash Payments Over $10,000 Received in a Trade or Business. Used to report cash
amounts in excess of $10,000 that were received in a single transaction (or in two or more related
transactions) in the course of a trade or business (as defined in section 162). However, if the
organization receives a charitable cash contribution in excess of $10,000, it isn’t subject to the
reporting requirement since the funds weren’t received in the course of a trade or business.
Carryforward Election of Unused Private Activity Bond Volume Cap
User Fee for Exempt Organization Determination Letter Request
Tax Information Authorization
Change of Address or Responsible Party — Business. Used to notify the IRS of a change in mailing
address that occurs after the return is filed.
Application for Automatic Extension of Time To File an Exempt Organization Return
Political Organization Notice of Section 527 Status
Political Organization Report of Contributions and Expenditures
Reportable Transaction Disclosure Statement
Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction
Notice of Income From Donated Intellectual Property. Used to report net income from qualified
intellectual property to the IRS and the donor.
Application for Employer Identification Number
Report of Foreign Bank and Financial Accounts (FBAR)
DRAFT AS OF
September 20, 2022
Form 1120-POL
Form 1128
Form 2848
Form 3115
Form 3520
Form 4506
Form 4506-A
Form 4562
Form 4720
Form 5471
Form 5500
Form 5578
Form 5768
Form 7004
Form 8038
Form 8274
Form 8282
Form 8283
Form 8300
Form 8328
Form 8718
Form 8821
Form 8822-B
Form 8868
Form 8871
Form 8872
Form 8886
Form 8886-T
Form 8899
Form SS-4
FinCEN Form 114
2022 Instructions for Form 990-EZ
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Helpful Publications
Publication 15
(Circular E), Employer's Tax Guide
Publication 15-A
Employer's Supplemental Tax Guide
DRAFT AS OF
September 20, 2022
Publication 463
Travel, Gift, and Car Expenses
Publication 525
Taxable and Nontaxable Income
Publication 526
Charitable Contributions
Publication 538
Accounting Periods and Methods
Publication 557
Tax-Exempt Status for Your Organization
Publication 561
Determining the Value of Donated Property
Publication 598
Tax on Unrelated Business Income of Exempt Organizations
Publication 892
How to Appeal an IRS Determination on Tax-Exempt Status
Publication 946
How To Depreciate Property
Publication 947
Practice Before the IRS and Power of Attorney
Publication 976
Disaster Relief
Publication 1771
Charitable Contributions—Substantiation and Disclosure Requirements
Publication 1779
Independent Contractor or Employee
Publication 1828
Tax Guide for Churches and Religious Organizations
Publication 3079
Tax-Exempt Organizations and Gaming
Publication 3386
Tax Guide—Veterans' Organizations
Publication 3833
Disaster Relief, Providing Assistance Through Charitable Organizations
Publication 4220
Applying for 501(c)(3) Tax-Exempt Status
Publication 4221-PC
Compliance Guide for 501(c)(3) Public Charities
Publication 4221-PF
Compliance Guide for 501(c)(3) Private Foundations
Publication 4302
A Charity's Guide to Vehicle Donation
Publication 4303
A Donor's Guide to Vehicle Donation
Publication 4386
Compliance Checks
Publication 4573
Group Exemptions
Appendix G: Use of Form 990 or 990-EZ To
Satisfy State Reporting Requirements
Monetary Tests May Differ
Some or all of the dollar limitations applicable to Form 990 or
990-EZ when filed with the IRS may not apply when using Form
990 or 990-EZ in place of state or local report forms. Examples
of the IRS dollar limitations that don’t meet some state
requirements are the normally $50,000 gross receipts minimum
that creates an obligation to file with the IRS and the $100,000
minimum for listing independent contractors in Form 990, Part
VII, Section B; or Form 990-EZ, Part VI, line 51.
Some states and local government units will accept a copy of
Form 990 or 990-EZ in place of all or part of their own financial
report forms. The substitution applies primarily to section 501(c)
(3) organizations, but some of the other types of section 501(c)
organizations are also affected. If the organization uses Form
990 or 990-EZ to satisfy state or local filing requirements, such
as those under state charitable solicitation acts, note the
following discussions.
Additional Information May Be Required
Determine State Filing Requirements
State or local filing requirements may require the organization to
attach to Form 990 or 990-EZ one or more of the following.
• Additional financial statements, such as a complete analysis
of functional expenses or a statement of changes in net
assets.
• Notes to financial statements.
• Additional financial schedules.
• A report on the financial statements by an independent
accountant.
• Answers to additional questions and other information.
The organization can consult the appropriate officials of all
states and other jurisdictions in which it does business to
determine their specific filing requirements. Doing business in a
jurisdiction can include any of the following.
• Soliciting contributions or grants by mail or otherwise from
individuals, businesses, or other charitable organizations.
• Conducting program.
• Having employees within that jurisdiction.
• Maintaining a checking account.
• Owning or renting property there.
Each jurisdiction may require the additional material to be
presented on forms they provide. The additional information
-40-
2022 Instructions for Form 990-EZ
See Schedule B (Form 990) and its instructions to determine
whether Schedule B (Form 990) must be filed. See also the
Instructions for Schedule B (Form 990) for the public inspection
rules applicable to that form.
doesn’t have to be submitted with the Form 990 or 990-EZ filed
with the IRS.
Even if the Form 990 or 990-EZ that the organization files with
the IRS is accepted by the IRS as complete, a copy of the same
return filed with a state won’t fully satisfy that state's filing
requirement if (1) required information isn’t provided, including
any of the additional information discussed previously; or (2) the
state determines that the form wasn’t completed by following the
applicable Form 990 or 990-EZ instructions or supplemental
state instructions. In such case, the state may ask the
organization to provide the missing information or to submit an
amended return.
Solicitation of nondeductible contribution. See the
instructions for Form 990, Part V, line 6, for rules on public notice
of nondeductibility when soliciting nondeductible contributions.
Keeping fundraising records for tax-deductible contributions. A section 501(c) organization that is eligible to receive
tax-deductible contributions under section 170(c) must keep
sample copies of its fundraising materials, such as:
• Dues statements,
• Fundraising solicitations,
• Tickets,
• Receipts, or
• Other evidence of payments received in connection with
fundraising activities.
DRAFT AS OF
September 20, 2022
Use of Audit Guides May Be Required
To ensure that all organizations report similar transactions
uniformly, many states require that contributions, gifts, grants,
similar amounts, and functional expenses be reported according
to the AICPA industry audit and accounting guide, Not-for-Profit
Organizations (New York, NY, AICPA, 2003), supplemented, as
applicable, by Standards of Accounting and Financial Reporting
for Voluntary Health and Welfare Organizations (Washington,
DC, National Health Council, Inc., 1998, 4th edition).
Donated Services and Facilities
Even though donated services and facilities may be reported as
items of revenue and expense in certain circumstances, many
states and the IRS don’t permit the inclusion of those amounts in
Form 990, Parts VIII and IX; Form 990-EZ, Part I; or (except for
such donations by a governmental unit) in Schedule A (Form
990). The optional reporting of donated services and facilities is
discussed in the instructions for Part III of Forms 990 and
990-EZ.
THEN...
the organization
advertises its
fundraising events
it must keep samples of the advertising copy.
the organization uses
radio, television, or
Internet to solicit
contributions
it must keep samples of scripts, transcripts,
printouts of emails and web pages, or other
evidence of solicitations in such media.
the organization uses
outside fundraisers
it must keep samples of the fundraising materials
used by the outside fundraisers.
For each fundraising event, the organization must keep
records to show the portion of any payment received from
patrons that isn’t deductible; that is, the retail value of the goods
or services received by the patrons. See Disclosure statement
for quid pro quo contributions, later.
Amended Returns
If the organization submits supplemental information or files an
amended Form 990 or 990-EZ with the IRS, it must also send a
copy of the information or amended return to any state with
which it filed a copy of Form 990 or 990-EZ originally to meet
that state's filing requirement. If a state requires the organization
to file an amended Form 990 or 990-EZ to correct conflicts with
the Instruction for Form 990 or 990-EZ, the organization must
also file an amended return with the IRS.
Noncash Contributions
Form 990 schedules. An organization may be required to
file Schedule M (Form 990), Noncash Contributions, to report
certain noncash (property) contributions; see the Instructions for
Schedule M (Form 990) on who must file. Also, an organization
that files Schedule B (Form 990) must report certain information
on noncash contributions.
Dispositions of donated property. If an organization
receives a charitable contribution of property and within 3 years
sells, exchanges, or otherwise disposes of the property, the
organization may need to file Form 8282, Donee Information
Return. See Form 990, Part V, lines 7c and 7d.
Donated property over $5,000. If the organization received
from a donor a partially completed Form 8283, Noncash
Charitable Contributions, the donee organization should
generally complete Form 8283 and return it so the donor can get
a charitable contribution deduction. The organization should
keep a copy for its records. See Form 8283 for more details.
Qualified intellectual property. An organization described
in section 170(c) (except a private foundation) that receives or
accrues net income from a qualified intellectual property
contribution must file Form 8899, Notice of Income From
Donated Intellectual Property. See Form 990, Part V, line 7g.
The organization must file Form 8899 for any tax year that
includes any part of the 10-year period beginning on the date of
contribution but not for any tax years in which the legal life of the
qualified intellectual property has expired or the property failed
to produce net income.
A donee organization reports all income from donated
qualified intellectual property as income other than contributions
(for example, royalty income from a patent). A donee isn’t
Method of Accounting
Most states require that all amounts be reported based on the
accrual method of accounting. See also General Instructions C.
Time For Filing May Differ
The deadline for filing Form 990 or 990-EZ with the IRS differs
from the time for filing reports with some states.
Public Inspection
The Form 990 or 990-EZ information made available for public
inspection by the IRS may differ from that made available by the
states, such as Schedule B (Form 990).
Appendix H: Contributions
This appendix discusses certain federal tax rules that apply to
exempt organizations and donors for contributions. See also
Pub. 526 and Pub. 1771.
Schedule B (Form 990). Many organizations that file Form
990, 990-EZ, or 990-PF must file Schedule B (Form 990) to
report on tax-deductible and non-tax-deductible contributions.
2022 Instructions for Form 990-EZ
IF...
-41-
services were provided in exchange for your contribution.” See
Notice 2012-52, 2012-35 I.R.B. 317.
Exception. The written acknowledgment need not include a
good faith estimate of value for goods or services given to the
donor if they are the following.
required to report as contributions on Form 990 (including
schedules) any of the additional deductions claimed by donors
under section 170(m)(1). See Pub. 526.
Motor vehicles, boats, and airplanes. Special rules apply
to charitable contributions of motor vehicles, boats, or airplanes
with a claimed value of more than $500. See Form 990, Part V,
line 7h; section 170(f)(12); Pub. 4302, A Charity’s Guide to
Vehicle Donation; and the Instructions for Form 1098-C,
Contributions of Motor Vehicles, Boats, and Airplanes.
1. Goods or services with insubstantial value.
2. Certain membership benefits.
DRAFT AS OF
September 20, 2022
3. Goods or services described in (1) or (2) given to the
employees of a donor organization or the partners of a
donor partnership.
Substantiation and Disclosure Requirements for
Charitable Contributions
4. Intangible religious benefits.
Recordkeeping for cash, check, or other monetary
charitable gifts. To deduct a contribution of a cash, check, or
other monetary gift (regardless of the amount), a donor must
maintain a bank record or a written communication from the
donee organization showing the donee's name, date, and
amount of the contribution. See section 170(f)(17) and
Regulations section 1.170A-15 for more information. In the case
of a text message contribution, the donor's phone bill meets the
section 170(f)(17) recordkeeping requirement of a reliable
written record if it shows the name of the donee organization and
the date and amount of contribution.
Acknowledgment to substantiate charitable
contributions. A donee organization should be aware that a
donor of a charitable contribution of $250 or more (including a
contribution of unreimbursed expenses) can’t take an income tax
deduction unless the donor obtains the organization’s
acknowledgment to substantiate the charitable contribution. See
section 170(f)(8) and Regulations section 1.170A-13(f). A
charitable organization that receives a payment made as a
contribution is treated as the donee organization for this purpose
even if the organization (according to the donor’s instructions or
otherwise) distributes the amount received to one or more
charities. The organization's acknowledgment must:
These exceptions are defined next.
Disclosure Statement for Quid Pro Quo
Contributions
If the organization receives a quid pro quo contribution of more
than $75, the organization must provide a disclosure statement
to the donor. See section 6115.
The organization’s disclosure statement must:
1. Be written;
2. Estimate in good faith the value of the organization’s goods
or services given in return for the donor’s contribution;
3. Describe, but need not value, certain goods or services
given to the donor’s employees or partners; and
4. Inform the donor that a charitable contribution deduction is
limited as follows:
Donor’s contribution
Less
The organization’s money, goods, and services given in
return
Equals
Donor’s deductible charitable contribution.
1. Be written;
2. Be contemporaneous;
3. State the amount of any cash it received;
Exceptions. No disclosure statement is required if the
organization gave only the following.
4. State:
a. Whether the organization gave the donor any intangible
religious benefits (no valuation needed), and
1. Goods or services with insubstantial value.
2. Certain membership benefits.
b. Whether the organization gave the donor any goods or
services in return for the donor’s contribution (a quid pro
quo contribution); and
3. Goods or services described in (1) or (2) given to the
employees of a donor organization or the partners of a
donor partnership.
5. Describe goods or services the organization:
4. Intangible religious benefits.
a. Received (no valuation needed), and
These exceptions are defined below. See also Regulations
sections 1.170A-1, 1.170A-13, and 1.6115-1.
b. Gave (good faith estimate of value needed).
If the organization accepts a contribution in the name of one
of its activities or programs, then indicate the organization’s
name in the acknowledgment as well as the program's name.
For example: “Thank you for your contribution of $300 to
(organization’s name) made in the name of our Special Relief
Fund program. No goods or services were provided in exchange
for your contribution.”
Similarly, if a domestic organization owns and controls a
domestic disregarded entity, and the disregarded entity receives
a contribution, then indicate the organization's name in the
acknowledgment as well as the relationship with the disregarded
entity. For example: “Thank you for your contribution of $300 to
(organization's name) made in the name of (name of
disregarded entity), which is treated as a disregarded entity of
(organization's name) for federal tax purposes. No goods or
Certain Goods or Services Disregarded for
Substantiation and Disclosure Purposes
Goods or services with insubstantial value. Generally,
under section 170, the deductible amount of a contribution is
determined by taking into account the FMV, not the cost to the
charity, of any benefits that the donor received in return.
However, the cost to the charity may be used in determining
whether the benefits are insubstantial. See below.
Cost basis. If a taxpayer makes a payment of $58.50 or more
to a charity and receives only token items in return, the items
have insubstantial value if they:
• Bear the charity’s name or logo, and
• Have an aggregate cost to the charity of $11.70 or less
(low-cost article amount of section 513(h)(2)).
-42-
2022 Instructions for Form 990-EZ
and is offered in both benefit packages, and the value of the
T-shirts is insubstantial, Museum J's disclosure statement need
not value or mention the free admission benefit or the T-shirts.
However, because the 25% gift shop discount to K’s employees
differs from the 10% discount offered in the basic membership
benefits package, J's disclosure statement must describe the
25% discount but need not estimate its value.
FMV basis. If a taxpayer makes a payment to a charitable
organization in a fundraising campaign and receives benefits
with an FMV of not more than 2% of the amount of the payment,
or $117, whichever is less, the benefits received have
insubstantial value in determining the taxpayer’s contribution.
The dollar amounts given above are applicable to tax
TIP year 2022 under Rev. Proc. 2021-45. They are adjusted
annually for inflation.
Definitions
DRAFT AS OF
September 20, 2022
When a donee organization provides a donor only with goods
or services having insubstantial value under Rev. Proc. 2021-45
(and any successor documents), the contemporaneous written
acknowledgment may indicate that no goods or services were
provided in exchange for the donor’s payment.
Certain membership benefits. Other goods or services that
are disregarded for substantiation and disclosure purposes are
annual membership benefits offered to a taxpayer in exchange
for a payment of $75 or less per year that consist of the
following.
Substantiation. It is the responsibility of the donor:
• To value a donation, and
• To obtain an organization's written acknowledgment
substantiating the donation.
There is no prescribed format for the organization's written
acknowledgment of a donation. Letters, postcards, or
computer-generated forms may be acceptable. The
acknowledgment must, however, provide sufficient information
to substantiate the amount of the deductible contribution. The
organization may either:
• Provide separate statements for each contribution of $250
or more, or
• Furnish periodic statements substantiating contributions of
$250 or more.
1. Any rights or privileges that the taxpayer can exercise
frequently during the membership period, such as:
a. Free or discounted admission to the organization's
facilities or events, and
Separate contributions of less than $250 aren’t subject to the
requirements of section 170(f)(8), regardless of whether the sum
of the contributions made by a taxpayer to a donee organization
during a tax year equals $250 or more.
Contemporaneous. A written acknowledgment is
contemporaneous if the donor obtains it on or before the earlier
of:
• The date the donor files the original return for the tax year in
which the contribution was made, or
• The due date (including extensions) for filing the donor’s
original return for that year.
b. Free or discounted parking.
2. Admission to events that are:
a. Open only to members; and
b. Within the low-cost article limitation, per person.
Example 1. E offers a basic membership benefits package
for $75. The package gives members the right to buy tickets in
advance, free parking, and a gift shop discount of 10%. E’s $150
preferred membership benefits package also includes a $20
poster. Both the basic and preferred membership packages are
for a 12-month period and include about 50 productions. E offers
F, a patron of the arts, the preferred membership benefits in
return for a payment of $150 or more. F accepts the preferred
membership benefits package for $300. E’s written
acknowledgment satisfies the substantiation requirement if it
describes the poster, gives a good faith estimate of its FMV
($20), and disregards the remaining membership benefits.
Substantiation of payroll contributions. An organization
may substantiate an employee’s contribution by deduction from
its payroll by:
• A pay stub, Form W-2, or other document showing a
contribution to a donee organization; together with
• A pledge card or other document from the donee
organization that shows its name. For contributions of $250
or more, the document must state that the donee
organization provides no goods or services for any payroll
contributions.
Example 2. In Example 1, if F received only the basic
membership package for its $300 payment, E’s
acknowledgment need state only that no goods or services were
provided.
The amount withheld from each payment of wages to a taxpayer
is treated as a separate contribution.
Substantiation of matched payments. If a taxpayer’s
payment to a donee organization is matched by another payer,
and the taxpayer receives goods or services in consideration for
its payment and some or all of the matching payment, those
goods or services will be treated as provided in consideration for
the taxpayer’s payment and not in consideration for the matching
payment.
Disclosure statement. An organization must provide a
written disclosure statement to donors who make a quid pro quo
contribution in excess of $75 (section 6115). This requirement is
separate from the written substantiation acknowledgment a
donor needs for deductibility purposes. While, in certain
circumstances, an organization may be able to meet both
requirements with the same written document, an organization
must be careful to satisfy the section 6115 written disclosure
statement requirement in a timely manner because of the
penalties involved.
Quid pro quo contribution. A “quid pro quo contribution” is
a payment that is made both as a contribution and as a payment
for goods or services provided by the donee organization.
Example 3. G Theater Group performs four plays. Each play
is performed twice. Nonmembers can purchase a ticket for $15.
For a $60 membership fee, however, members are offered free
admission to any of the performances. H makes a payment of
$350 and accepts this membership benefit. Because of the
limited number of performances, the membership privilege can’t
be exercised frequently. Therefore, G’s acknowledgment must
describe the free admission benefit and estimate its value in
good faith.
Certain goods or services provided to donor’s
employees or partners. Certain goods or services provided to
employees of donor organizations or partners of donor
partnerships may be disregarded for substantiation and
disclosure purposes. Nevertheless, the donee organization's
disclosure statement must describe such goods or services. A
good faith estimate of value isn’t needed.
Example. Museum J offers a basic membership benefits
package for $40. It includes free admission and a 10% gift shop
discount. Corporation K makes a $50,000 payment to J and in
return, J offers K’s employees free admission, a T-shirt with J’s
logo that costs J $4.50, and a 25% gift shop discount. Because
the free admission is a privilege that can be exercised frequently
2022 Instructions for Form 990-EZ
-43-
Example. A donor gives a charity $100 in consideration for a
concert ticket valued at $40 (a quid pro quo contribution). In this
example, $60 would be deductible. Because the donor’s
payment exceeds $75, the organization must furnish a
disclosure statement even though the taxpayer’s deductible
amount doesn’t exceed $75. Separate payments of $75 or less
made at different times of the year for separate fundraising
events won’t be aggregated for purposes of the $75 threshold.
Good faith estimate. An organization may use any
reasonable method in making a good faith estimate of the value
of goods or services provided by that organization in
consideration for a taxpayer’s payment to that organization. A
good faith estimate of the value of goods or services that aren’t
generally available in a commercial transaction may be
determined by reference to the FMV of similar or comparable
goods or services. Goods or services may be similar or
comparable even though they don’t have the unique qualities of
the goods or services that are being valued.
Goods or services. Goods or services include:
• Cash,
• Property,
• Services,
• Benefits, and
• Privileges.
Goods or services a donee organization provides in
consideration for a payment by a taxpayer include goods or
services provided in a year other than the year in which the
donor makes the payment to the donee organization.
Intangible religious benefits. Intangible religious benefits
are provided only by organizations organized exclusively for
religious purposes. Examples include:
• Admission to a religious ceremony; and
• De minimis tangible benefits, such as wine provided in
connection with a religious ceremony.
DRAFT AS OF
September 20, 2022
Penalties. A charity that knowingly provides a false
substantiation acknowledgment to a donor may be subject to the
penalties under section 6701 and/or section 7206(2) for aiding
and abetting an understatement of tax liability.
Charities that fail to provide the required disclosure statement
for a quid pro quo contribution of more than $75 will incur a
penalty of $10 per contribution, not to exceed $5,000 per
fundraising event or mailing. The charity may avoid the penalty if
it can show that the failure was due to reasonable cause (section
6714).
Photographs of Missing Children
The IRS is a proud partner with the National Center for Missing &
Exploited Children® (NCMEC). Photographs of missing children
selected by the Center may appear in instructions on pages that
would otherwise be blank. You can help bring these children
home by looking at the photographs and calling
1-800-THE-LOST (1-800-843-5678) if you recognize a child.
In consideration for. A donee organization provides goods
or services in consideration for a taxpayer’s payment if, at the
time the taxpayer makes the payment to the donee organization,
the taxpayer receives, or expects to receive, goods or services
in exchange for that payment.
-44-
2022 Instructions for Form 990-EZ
Paperwork Reduction Act Notice. We ask for the information on these forms to carry out the Internal Revenue laws of the United
States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to
figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the
Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions
must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by section 6103. However, certain returns and return information of
tax-exempt organizations and trusts are subject to public disclosure and inspection, as provided by section 6104.
DRAFT AS OF
September 20, 2022
Estimates of taxpayer burden. These include forms in the 990 series and attachments and Forms 1023, 1024, 1028, 5578,
5884-C, 8038, 8038-B, 8038-CP, 8038-G, 8038-GC, 8038-R, 8038-T, 8038-TC, 8328, 8718, 8282, 8453-TE, 8453-X, 8868, 8870,
8871, 8872, 8879-TE, 8886-T, and 8899 and their schedules and all the forms tax-exempt organizations attach to their information
returns. Time spent and out-of-pocket costs are presented separately. Time burden includes the time spent preparing to file and to file,
with recordkeeping representing the largest component. Out-of-pocket costs include any expenses incurred by tax-exempt
organizations to prepare and submit their tax returns. Examples include tax return preparation and submission fees, postage and
photocopying costs, and tax preparation software costs. Note that these estimates do not include burden associated with post-filing
activities. IRS operational data indicate that electronically prepared and filed returns have fewer arithmetic errors, implying lower
post-filing burden.
Reported time and cost burdens are national averages and do not necessarily reflect a “typical” case. Most tax-exempt
organizations experience lower-than-average burden, with tax-exempt organization burden varying considerably by tax-exempt
organization type. For instance, the estimated average time burden for all tax-exempt organizations filing Forms 990, 990-EZ, 990-PF,
990-T, and 990-N and related forms is 33.5 hours, with an average cost of $992 per return. This average includes all associated forms
and schedules, across all preparation methods and taxpayer activities.
Fiscal Year 2023 Form 990 Series Tax Compliance Cost Estimates
Form 990
Projections of the Number of
Returns To Be Filed With the
IRS
Form 990-EZ
Form 990-PF
Form 990-T
Form 990-N
330,400
260,200
131,800
263,400
754,300
Estimated Average Total Time
(Hours)
85
45
47
40
2
Estimated Average Total
Out-of-Pocket Costs
$2,700
$600
$2,100
$1,500
$10
Estimated Average Total
Monetized Burden
$8,200
$1,300
$4,000
$4,600
$30
28,000,000
11,760,000
6,140,000
10,660,000
1,660,000
$903,100,000
$147,500,000
$272,000,000
$397,200,000
$7,100,000
$2,719,300,000
$331,900,000
$529,800,000
$1,204,800,000
$26,100,000
Estimated Total Time (Hours)
Estimated Total Out-of-Pocket
Costs
Estimated Total Monetized
Burden
Note. Amounts above are for FY2023. Reported time and cost burdens are national averages and do not necessarily reflect a “typical” case. Most tax-exempt organizations experience
lower-than-average burden, with tax-exempt organization burden varying considerably by tax-exempt organization type. Detail may not add due to rounding.
Comments and suggestions. We welcome your comments about these instructions and your suggestions for future editions. You
can send us comments through IRS.gov/FormComments. Or you can write to:
Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your
comments as we revise our tax forms, instructions, and publications. We can’t answer tax questions sent to the above address.
Do not send Form 990-EZ to this address. Instead, see General Instructions D. When, Where, and How To File, earlier.
2022 Instructions for Form 990-EZ
-45-
Index
A
Capital gains 13
Cash 17
Cash receipts and disbursements 4
Certificates of deposit 13, 17
Changes in net assets 16, 40
Children:
Photographs of missing 44
Church 3, 37
Church-affiliated organization 3
Club facilities 22
Commercial co-venture 11
Compensation 16, 18, 26
Deferred 19
Reasonable 35, 36
Reportable 18
Conformed copy 20
Contemporaneous 35
Contracts:
Initial 35
Contributions 10, 14
Contributors:
Schedule of 12
Controlled entity 2, 25
Controlling organization 2, 25
Copies 31
Accountant 8
Accounting:
Method 4, 41
Period 4
Accounts payable 17
Accounts receivable 17
Accrual (method) 41
Address 8
Change of 7
Website 9
AKA or a.k.a. (See Name and address)
Amended return 41
Description of amendments 5
Annual information return 1, 32
Anti-abuse rule 29
Appendix:
Appendix A: Exempt Organizations
Reference Chart 27
Appendix B: How to Determine
Whether an Organization's Gross
Receipts are Normally $50,000 (or
$5,000) or Less 28
Appendix C: Special Gross Receipts
Tests for Determining Exempt
Status of Section 501(c)(7) and
501(c)(15) Organizations 28
Appendix D: Public Inspection of
Returns 29
Appendix E: Section 4958 Excess
Benefit Transactions 33
Appendix F: Forms and Publications
To File or Use 37
Appendix G: Use of Form 990 or
990-EZ To Satisfy State Reporting
Requirements 40
Appendix H, Contributions 41
Application for tax exemption 30
Application pending 3
ASC 958 10, 16
Assets:
Net 17
Other 17
Total 17
Assistance to individuals 15
Attachments 7
Attorney 8
Audit guides 41
Deferred compensation 15, 19
Defined contribution plan 19
Depreciation 16
Disclosure 29
Disqualified person 33
Disregarded entities 7
Dissolution 21
Dividends 13, 23
Documents 32
Donations:
Of services 11
Of use of property 11
Donor advised fund 24
Donor advisor 24, 34
Sponsoring organization 2, 24
Supporting organization 34
Dues and assessments 11
Affiliates 12
Members 12
Nondeductible 20
B
E
Expenses:
Program service 13
Rent 16
Extension of time to file 5
DRAFT AS OF
September 20, 2022
Balance sheet 16
Bank account 23
Bingo 13
Black lung trust 2
Book value 17
Books and records 13, 23
Buildings 17
Business activities 12
C
Calendar year 4, 7
Candidates for public office 22, 25
Capital contributions 22
D
Economic benefit:
Disregarded 35
Interest on loans (foregone) 35
Liability insurance premiums 35
Nontaxable fringe 35
Employee benefits 15
Employer identification number
(EIN) 8
EO Determinations 19
Excess benefit transaction 23, 33, 34,
36
Excise tax 22, 23, 36
Exempt purpose 13
-46-
F
Fair market value 34, 36
Federal unemployment tax (FUTA) 15
Federated fundraising agencies 11
Fees:
Copies 31
Fundraising 16
Government 12
Initiation 22
Laboratory 12
Membership 12
Professional 16
Registration 12
Final return 5
Financial account 23
Fiscal year 4
Five highest compensated
employees 26
Fixed payment 35
Foreign organization
(See Organization)
Forms 24, 38
Form 1023-EZ, Streamlined
Application for Recognition of
Exemption Under Section 501(c)(3)
of the Internal Revenue Code 3
Form 1023, Application for
Recognition of Exemption Under
Section 501(c)(3) of the Internal
Revenue Code 3
Form 1024-A, Application for
Recognition of Exemption Under
Section 501(c)(4) of the Internal
Revenue Code 3
Form 1024, Application for
Recognition of Exemption Under
Section 501(a) or for Determination
Under Section 120 3
Form 1041, U.S. Income Tax Return
for Estates and Trusts 3
Form 1065, U.S. Return of Partnership
Income 4
Form 1099-MISC, Miscellaneous
Income, Methods 18
Form 1120-POL, U.S. Income Tax
Return for Certain Political
Organizations 22
Form 1128, Application To Adopt,
Change, or Retain a Tax Year 4
Form 4506-A, Request for a Copy of
Exempt or Political Organization
IRS Form 29
Form 4720, Return of Certain Excise
Taxes on Charities and Other
Persons Under Chapters 41 and 42
of the Internal Revenue Code 22,
23
Form 5500, Annual Return/Report of
Employee Benefit Plan 4
Form 8822-B, Change of Address or
Responsible Party — Business 8
Forms (Cont.)
Form 8868, Application for Automatic
Extension of Time To File an
Exempt Organization Return 5
Form 8886-T, Disclosure by
Tax-Exempt Entity Regarding
Prohibited Tax Shelter
Transaction 23
Form 941, Employer's Quarterly
Federal Tax Return 18
Form 990-N, Electronic Notice
(e-Postcard) for Tax-Exempt
Organizations not Required To File
Form 990 or 990-EZ 2
Form 990-PF, Return of Private
Foundation or Section 4947(a)(1)
Nonexempt Charitable Trust
Treated as a Private Foundation 4
Form 990-T, Exempt Organization
Business Income Tax Return 20,
22
Form W-2, Wage and Tax
Statement 18
Fringe benefits 35
Fund balances 17
Fundraising 10, 11
Fundraising Events 7, 10, 13, 14
FUTA (See Federal unemployment tax)
List of required schedules and
attachments 7
Loans 22
Lobbying:
Direct 21
Grassroots 21
Lobbying expenses 20
Local or subordinate
organizations 30
Political organization
(See Organization)
Postage 16
Printing 16
Private foundation 4
Professional fees (See Fees)
Program services 12
Program-related investment
(See Investment)
Proxy tax 20
Public charity 4, 24
Public inspection 6, 29, 30, 41
Publications:
Helpful 40
Pub. 15-A, Employer's Supplemental
Tax Guide 26
Pub. 15, Circular E Employer's Tax
Guide 24
Deferred compensation 18
Pub. 1771, Charitable
Contributions—Substantiation and
Disclosure Requirements 10
Pub. 1779, Independent Contractor or
Employee 26
Pub. 463, Travel, Entertainment, Gift,
and Car Expenses 11
Pub. 525, Taxable and Nontaxable
Income 26
Pub. 526, Charitable
Contributions 10, 11
Pub. 557, Tax-Exempt Status for Your
Organization 6
Pub. 598, Tax on Unrelated Business
Income of Exempt
Organizations 20
Pub. 946, How To Depreciate
Property 16
Pub. 947, Practice Before the IRS and
Power of Attorney 27
Purpose of form 1
DRAFT AS OF
September 20, 2022
G
Gaming 13
Gifts 10
Goods or services 14
Governing documents 20
Grants 10, 15
Gross receipts 22, 28
Gross rental income 13
Gross revenue (See Revenue)
Gross sales 14
Group exemption number (GEN) 8
Group return 3
H
Heath benefits 19
Helpful hints 2
Helpful publications 40
Hours per week 18
I
Incomplete return 6
Independent contractors 16, 26
Insurance 29
Interest 13
Mortgage 16
Rent 16
Interest income 13
Inventory 14
Investment:
Program-related 12, 13
Rental income 13
L
Land 17
Late filing 6
Legislation 21
Liabilities, total 17
Liquidation 21
List of officers directors, trustees,
and key employees 18
M
Maintenance expense 16
Major disposition of assets 21
Medicare taxes 15
Membership benefits 12
Membership dues and assessments
(See Dues and assessments)
Miscellaneous expenses 16
Miscellaneous income 18
Mission society 3
Money market funds 17
Mortgage interest (See Interest)
N
Name and address 8
Name change 7
Net Assets (See Assets)
Noncash contributions 12
Nondiscrimination policy 23
Nonexempt charitable trust 23
Nonfixed payments (See Payments)
Notes receivable 15
Notice 32
O
Occupancy 16
Offices:
Permanent 31
Regional or district 30, 31
Organization:
Affiliated 34
Foreign 2, 33
Political 3, 22, 25, 30
Related 25
Religious 2, 3
Supporting 2, 34
Organization managers 36
Organizing document 20
Other Assets (See Assets)
P
Paid preparer 26
Identifying number of 27
Paperwork Reduction Act Notice 45
Payments:
Compensation 35
Government 11
Independent contractors 16
Nonfixed 36
Services 11
Severance 35
To affiliates 15
Payroll taxes 15
Penalties 16
Failure to file 6
Political campaign activities 25
Political expenditures 22
-47-
R
Raffles 13
Recordkeeping 6
Related Organization
(See Organization)
Rent Expenses (See Expenses)
Reportable compensation
(See Compensation)
Revenue 10
Deferred 17
Gross 14
Program service 11, 12
Revenue sharing transactions 37
Revocation 37
Rounding off 6
Royalties 12, 13, 15
S
Salaries 15
Sale:
Of assets 13
Of inventory 14
Of merchandise 14
Of securities 13
Sale of securities (See Sale)
Savings 13, 17
Savings accounts (See Savings)
Schedules 24, 38
Schedules (Cont.)
Schedule A (Form 990), Public Charity
Status and Public Support 25
Schedule B (Form 990), Schedule of
Contributors 1, 9, 41
Schedule C (Form 990), Political
Campaign and Lobbying
Activities 20, 25
Schedule E (Form 990), Schools 25
Schedule G (Form 990), Supplemental
Information Regarding Fundraising
or Gaming Activities 14
Schedule L (Form 990), Transactions
With Interested Persons 22, 23
Schedule M (Form 990), Noncash
Contributions 41
Schedule N (Form 990), Liquidation,
Termination, Dissolution, or
Significant Disposition of Assets 6,
8, 21
Schedule O 5-8, 15-17, 19, 20, 23-25,
38
School 25
Securities 13, 17
Securities account 23
Shipping 16
Short accounting period or short
year 4
Signature 6
Authority 27
Block 26
Significant Disposition of Net
Assets 21
Social security number 27
Social security taxes 15
Solicitation 11
Specific Instructions 7
State filing requirements 6, 40
State reporting requirements 5, 40
Statement of Program Service
Accomplishments 17
Substantial contributor 34
Substantial influence 34
Substantiation 35
Substitute forms 20
Supporting organization
(See Organization)
Sweepstakes 14
Telephone number 8
Termination 21
Text message contribution 42
Total assets (See Assets)
Transfers:
To exempt non-charitable related
organizations 25
Trust, section 4947(a)(1) 3, 23
DRAFT AS OF
September 20, 2022
T
Tax shelter transaction 23
Tax year 7
Taxes 15, 16, 23, 36
-48-
U
U.S. possession 2
U.S. Treasury bills 13, 17
Unrelated trade or business 12
Income 20, 30
Income tax 16
Utilities 16
V
Value:
Nominal or insubstantial 10
W
Website (See Address)
Who must file 2
| File Type | application/pdf |
| File Title | 2022 Instructions for Form 990-EZ |
| Subject | Instructions for Form 990-EZ, Short Form Return of Organization Exempt From Income Tax Under Section 501(c), 527, or 4947(a)(1) |
| Author | W:CAR:MP:FP |
| File Modified | 2022-12-12 |
| File Created | 2022-09-19 |