If you’re preparing to file your nonprofit tax returns in the US, read on for guidance about tax-exempt status, filing requirements, and types of forms. For the most up-to-date information, check the Internal Revenue Service (IRS) website.

1. Is my nonprofit a registered 501(c)(3)?

By its simplest definition, a nonprofit organization is one in which those who control or support it do not earn a profit. In the US, you first register a nonprofit organization with the state. To apply for US federal tax exemption, you must already be organized under state law as a nonprofit, and then apply to the federal US government (the IRS) for recognition as a 501(c)(3) organization.

If the IRS approves your application for 501(c)(3) recognition, they will issue a letter (known as a “letter of determination”) affirming that your organization is exempt from federal income tax. Unless your organization is a registered 501(c)(3), it does not qualify for US federal tax exemption.

2. Do I have to file an IRS tax return?

Put simply, yes. While tax-exempt status means an organization does not need to pay federal corporate income tax on income generated by activities directly related to the nonprofit’s mission, there is a wide variety of other taxes that a registered 501(c)(3) may be obligated to pay. Other than a few exceptions, the IRS requires all exempt organizations to file annual returns of their income and expenses. Failing to file your tax returns can lead to a revocation of your 501(c)(3) status.

There are a few exceptions to the general rule. Small tax-exempt nonprofits with gross receipts under $50,000 file an annual electronic notice. Churches and church-affiliated organizations that meet the requirements of 501(c)(3) status are not required to file an annual return or notice with the IRS.

3. Which tax form do I need?

There are four 990 forms for 501(c)(3) tax return filing purposes.

• Form 990 is the IRS’ general tool for collecting information about tax-exempt organizations and is also used to share programmatic information with the public.
• Form 990-PF is the tax form for private foundations.
• Form 990-EZ is the short-form return of organizations exempt from income tax.
• Form 990-N is the electronic notice or e-postcard for small exempt organizations with gross receipts less than $50,000.

Learn how to register your nonprofit as a 501(c)(3) with the federal government, and get more information about which tax form you need to file.