What is Form 990 and who must file it?
Form 990 is the annual information return required by the IRS for most tax-exempt organizations under Section 501(c). It discloses the organization’s revenue, expenses, executive compensation, governance policies, and program accomplishments. Most 501(c)(3) organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more, must file the full Form 990. Smaller organizations may file the 990-EZ, and private foundations file Form 990-PF. Form 990 is a public document, and anyone can request a copy. Tax-exempt organizations may also need to file 990-T if the organization has unrelated business taxable income.
Our Nonprofit Tax Services
Form 990, 990-EZ, and 990-PF Preparation and E-Filing
State Income Tax Returns
Schedule A, B, D, L, and Other Complex Disclosures
Exempt Status Applications (Form 1023 / 1024)
UBIT Analysis and Planning with 990T Filing
OFAC compliance
What is unrelated business income tax (UBIT) for nonprofits?
Unrelated business income tax (UBIT) applies when a tax-exempt organization regularly carries on a trade or business that is not substantially related to its exempt purpose. Common examples include advertising revenue in publications, income from facility rentals to for-profit users, and certain investment income. UBIT is reported on Form 990-T and taxed at corporate rates. Nonprofits must track potential UBIT sources carefully, as failure to report can trigger IRS penalties and jeopardize exempt status.
What Your Form 990 Communicates, and Why It Matters
The 990 is publicly available on the official IRS Tax Exempt Organization Search (TEOS) tool and majorr databases like ProPublica’s Nonprofit Explorer and Candid (formerly GuideStar). Sophisticated donors, grant officers, and journalists review it before making funding decisions. Watchdog organizations use it too, and it can either tell a compelling story of mission execution and financial discipline or create compliance risk and public scrutiny. At MillerMusmar CPAs, we approach the 990 not just as a compliance document but as an opportunity to present your organization’s financial stewardship accurately and compellingly.
Common issues we address for new clients:
- Incorrect allocation of expenses across program service, management, and fundraising functions
- Incomplete or vague program service accomplishment narratives
- Unreported or improperly disclosed executive compensation
- Missing or incorrect governance policy disclosures (conflict of interest, whistleblower, document retention)
- Incorrectly calculated public support percentages on Schedule A
Our Approach: Proactive, Accurate, Protective
Information Gathering & Review
We provide a detailed organizer tailored to your organization's prior-year return and current activities. Our team reviews it for completeness before beginning preparation.
Preparation & Internal Review
Your return is prepared by our nonprofit tax team and reviewed by a senior CPA before it reaches you. We check every schedule, test every calculation, and flag any items requiring a management decision.
Client Review & Approval
We walk through the key sections of the return with your leadership, explaining what it discloses and why, before you sign and authorize e-filing.
E-Filing & Year-Round Support
We file electronically and provide year-round guidance on governance policy updates, UBIT monitoring, and any IRS correspondence that arises.
Form 990 Preparation Guide
Download our annual guide covering key schedule changes, common IRS red flags, executive compensation disclosure rules, and what grant officers look for in a well-prepared 990.
Let’s Talk About Your 990
Whether you’re filing for the first time or switching from another preparer, we’ll start with a no-obligation review of your situation.