Why Do Tax Exempt School File Their Annual Information Return With the IRS?

It is not mandatory for schools and educational institutions covered under the Section 501(c) (3) to pay their taxes. But they need to file the information on the expenses and income for a given accounting year by filing either Form 990-N, 990-EZ, or 990 each year. Now this annual filing is based on the asset value as well as the gross receipts of the educational institution.

What 990 Form Does the Schools & Education Institutions need to
File to the IRS?

NonProfit schools need to file Form 990 or 990-EZ or Form 990-N based on the asset value and the annual gross receipts.

Form 990-N

Tax exempt organizations and nonprofits having gross receipts less than or equal to $50,000 need to complete their annual filing requirements by e-filing 990-N (also known as e-Postcard) as there is no paper form available for Form 990-N.

There are certain basic information that you need to complete for filing your e-Postcard

  • EIN (Employer Identification Number)
  • Legal name & address of the organization
  • Tax year
  • Various names of the organization (if applicable)
  • Address & name of the principal officer
  • Confirmation of gross receipts being less than equal to $50,000
  • Website of the organization
  • Written statement if the organization is getting dissolved or going out of business

Form 990-EZ

Form 990-EZ is filed by nonexempt charitable trusts, small tax exempt organizations and section 527 political organizations to get exemption from income tax. The gross receipts of these organizations need to be less than $200,000 and the total assets less than $500,000 to file Form 990-EZ.

Form 990

Organizations whose gross receipts are more than or equal to $200,000 or total assets is more than or equal to $500,000 need to file 990. Other organizations like section 527 political organization and non-exempt charitable trusts also file this form to receive the recognition of federal income tax exemption under 501(a).

Required Schedules (Schedule A & E) for Schools & Educational Institutions

In addition, based on the activities of your organization, you might have to file additional information along with filing Form 990-EZ, and this is possible by adding appropriate schedules with 990-EZ to complete your annual filing requirements.

Schedule A

A Schedule A is used to provide the necessary information regarding the public support and charity status. This schedule is commonly used by organizations which are described in Section 501(c)(3) for explaining their program services, provide details about their mission statements and other descriptions related to their charitable goals.

Schedule E

Schedule E is commonly used for reporting information about schools if the organizations terms itself as a school as per the Section 170(b)(1)(A)(ii) on Form 990 or Form 990-EZ. This form is used by those organizations who file Form 990-EZ or Form 990 for reporting information related to private schools.

Other Schedules which schools & educational institutions need to file with form 990/990-EZ if required

  • Schedule B - Schedule of Contributors
  • Schedule C - Political Campaign and Lobbying Activities
  • Schedule D - Supplemental Financial Statements
  • Schedule F - Statement of Activities Outside the United States,
  • Schedule G - Supplemental Information Regarding Fundraising or Gaming Activities
  • Schedule I - Grants and Other Assistance to Organizations, Governments and Individuals
  • Schedule J - Compensation Information
  • Schedule K - Supplemental Information on Tax-Exempt Bonds
  • Schedule L - Transactions with Interested Persons
  • Schedule M - Noncash Contributions
  • Schedule N - Liquidation, Termination, Dissolution, or Significant Disposition of Assets
  • Schedule O - Supplemental Information of Form 990 & Form 990-EZ
  • Schedule R - Related Organizations and Unrelated Partnerships