Filing Form 990-EZ electronically is the easiest and most efficient way to fulfill your tax obligations as a small non-profit organization. This guide will walk you through the process, answering common questions and ensuring a smooth filing experience.
What is Form 990-EZ?
Form 990-EZ, Return of Organization Exempt From Income Tax, is used by small non-profit organizations to report their annual financial information to the IRS. It's a simpler version of the Form 990 and is designed for organizations meeting specific criteria, such as having gross receipts under $50,000 and total assets under $250,000.
Where to File Form 990-EZ Electronically?
You'll file Form 990-EZ electronically through the IRS's e-file system. This isn't done directly on the IRS website but through authorized IRS e-file providers. These providers offer software that guides you through the process and transmits your return securely. You can find a list of authorized providers on the IRS website, but be cautious and only use reputable providers.
Choosing an e-file Provider
Selecting the right e-file provider is crucial. Consider these factors:
- Cost: Some providers charge a fee, while others offer free filing (often for organizations meeting certain criteria).
- Ease of use: Choose software that's intuitive and user-friendly, even if you're not tech-savvy.
- Support: Look for providers that offer reliable customer support in case you encounter any issues.
- Features: Some providers offer additional features, such as tax preparation tools or storage for your past returns.
Step-by-Step Guide to Electronic Filing
Once you've chosen an e-file provider, the general process usually follows these steps:
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Gather your necessary information: Before you begin, compile all the financial documents you'll need, including bank statements, income statements, and expense reports. Accuracy is crucial at this stage.
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Create an account: Most providers require you to create an account. This usually involves providing some basic information about your organization.
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Input your data: Enter your organization's information into the e-file software. The software will guide you through each section of Form 990-EZ.
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Review your return: Carefully review all the information you've entered to ensure accuracy before submitting it.
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E-file your return: Once you're satisfied with the accuracy of your return, submit it electronically through the provider's platform.
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Confirmation: You should receive a confirmation number once your return has been successfully filed. Keep this number for your records.
What if I Make a Mistake?
If you discover a mistake after filing, you'll need to file an amended return (Form 990-X). You should contact the IRS or your e-file provider for guidance on how to proceed.
How Much Does it Cost to File Electronically?
The cost varies depending on the e-file provider you choose. Some providers offer free services, while others charge a fee. The cost is usually lower than the cost of professional tax preparation services.
What Happens After I File?
After successful e-filing, the IRS will process your return. You will generally receive an acknowledgement. If the IRS needs additional information, they will contact you.
Can I File Form 990-EZ by Mail?
While electronic filing is highly recommended, you can file Form 990-EZ by mail. However, electronic filing is much more efficient and reduces the risk of errors. The IRS strongly encourages electronic filing.
This comprehensive guide should help you navigate the process of filing Form 990-EZ electronically. Remember to choose a reputable e-file provider, gather all necessary information, and review your return carefully before submitting it. By following these steps, you can ensure a smooth and efficient filing experience.
