Form 990-EZ instructions: line-by-line guide for treasurers

Last updated 2026-07-24

What is Form 990-EZ and who must file it?

Form 990-EZ is the "Short Form Return of Organization Exempt From Income Tax." The IRS requires it for tax-exempt organizations with gross receipts between $50,000 and $200,000 and total assets under $500,000 ^[1]. Most booster clubs, PTOs, parent groups, and youth sports leagues file this version once they exceed the $50,000 threshold. If your organization's gross receipts stay under $50,000, you can file the simpler Form 990-N (the e-Postcard) instead. If gross receipts hit $200,000 or more, or assets reach $500,000 or more, you must file the full Form 990, which runs nine core pages and often requires professional help. The 990-EZ is due by the 15th day of the fifth month after your fiscal year ends ^[1]. For calendar-year organizations, that's May 15. You can request an automatic six-month extension using Form 8868, but you need to file it before the original deadline. Late filers face penalties starting at $20 per day, capped at the lesser of $10,500 or 5 percent of gross receipts ^[1]. The term "gross receipts" includes all revenue before expenses: fundraiser sales, donations, grants, membership dues, concession income, and investment earnings. It's not profit. A booster club that runs a $60,000 holiday-wreath sale and spends $45,000 on inventory still reports $60,000 in gross receipts, not the $15,000 net.

What does a treasurer do when preparing the 990-EZ?

The treasurer is usually the officer who signs and files the 990-EZ. In most booster clubs and PTOs, the treasurer role means maintaining the books, preparing financial reports for the board, and handling IRS filings. For the 990-EZ specifically, the treasurer: - Collects all bank statements, receipts, and financial records for the tax year

• Reconciles every transaction to a category (revenue or expense)
• Totals revenue by type: contributions, program service revenue, fundraising gross, investment income, other
• Totals expenses by category: program services, management and general, fundraising
• Calculates net assets (what you own minus what you owe) at the beginning and end of the year
• Completes required schedules (especially Schedule A if you're a public charity, Schedule B if you received donations over $5,000, Schedule O for any narrative explanations)
• Reviews the completed form with at least one other board member
• Files the return electronically or by mail, ensuring it arrives by the deadline Many new treasurers inherit incomplete records mid-year. If you're taking over the books, your first job is reconstructing a 12-month ledger from bank statements. The IRS doesn't care that you started in March; the 990-EZ covers the full fiscal year, and someone has to account for January and February. The BoosterLedger Treasurer Kit includes a 990-EZ checklist and category-mapping spreadsheet matched to IRS line numbers, which cuts preparation time by half for first-time filers. You still need to do the work, but you won't spend hours guessing which line an expense belongs on.

How do you complete Part I: Revenue, Expenses, and Changes in Net Assets?

Part I is the financial summary. It mirrors a simplified income statement. Each line has a specific IRS definition; don't invent your own categories. Lines 1-9: Revenue - Line 1 (Contributions, gifts, grants): Cash and non-cash donations with no expectation of goods or services in return. A parent writes a check "to support the band": Line 1. A parent buys a $50 raffle ticket hoping to win a TV: not Line 1 (that's fundraising gross, Line 6b). If your organization received any single contribution over $5,000, you must attach Schedule B and list the donor (though the public version redacts names) ^[1].

• Line 2 (Program service revenue): Fees charged for your exempt purpose. A soccer league's registration fees go here. A booster club charging gate admission to a game: Line 2. Revenue from an unrelated trade or business (like selling advertising to local businesses) may require filing Form 990-T for unrelated business income tax; confirm with the IRS if revenue comes from activities unrelated to your exempt purpose ^[2].
• Line 3 (Membership dues): Dues that primarily pay for member benefits. Many booster clubs don't charge formal dues; if you do, they go here.
• Line 4 (Investment income): Interest, dividends, capital gains. A savings account earned $47 in interest: Line 4.
• Line 5a-c (Gross receipts from special events, minus direct expenses): Report gross on 5a, direct costs (prizes, catering, entertainment, rent for the venue) on 5b, net on 5c. If you ran a gala that brought in $12,000 and cost $4,500, put $12,000 on 5a, $4,500 on 5b, $7,500 on 5c. Volunteer labor and indirect costs (your treasurer's time, general supplies) do not reduce Line 5b; those are management or program expenses reported separately in Part I expenses.
• Line 6a-c (Gross income from gaming, minus direct expenses): Raffle, bingo, pull-tab, casino-night revenue. Same structure as Line 5. Check your state's raffle licensing and reporting requirements; most states require a separate annual raffle report filed with the attorney general or charity registration office.
• Line 7a-b (Gross sales of inventory, minus cost of goods sold): Fundraisers selling physical products. Your spirit-wear sale brought in $8,000, the shirts cost $3,200: put $8,000 on 7a, $3,200 on 7b, $4,800 on 7c. If you consign items and never take title, report only your commission on Line 8 (other revenue).
• Line 8 (Other revenue): Anything not captured above. Rebates, refunds of prior-year expenses, miscellaneous income.
• Line 9 (Total revenue): Sum Lines 1 through 8. Lines 10-16: Expenses - Line 10 (Grants and similar amounts paid): Cash you gave to individuals or other organizations to further your exempt purpose. A scholarship awarded to a student: Line 10. A check to another 501(c)(3) for a joint project: Line 10. These require Schedule I if the total exceeds $5,000 ^[1].
• Line 11 (Benefits paid to or for members): Not common in booster clubs or PTOs. Skip unless you operate a mutual benefit society.
• Line 12 (Salaries, other compensation, employee benefits): Wages, payroll taxes, health insurance for any employees. Most booster clubs and PTOs are all-volunteer and leave this blank.
• Line 13 (Professional fees): Accountants, lawyers, fundraising consultants, contract labor for specific projects.
• Line 14 (Occupancy, rent, utilities, maintenance): If you rent a storage unit or office space, utilities, property insurance.
• Line 15 (Printing, publications, postage, shipping): Newsletters, flyers, program printing, mailing costs.
• Line 16 (Other expenses): Everything else. Bank fees, supplies, equipment, travel, meals, program costs. Attach Schedule O and itemize each category if Line 16 is large ^[1]. The IRS wants to see detail; a $40,000 "Other expenses" line with no breakdown invites questions.
• Line 17 (Total expenses): Sum Lines 10 through 16. Lines 18-21: Net Assets - Line 18 (Excess or deficit for the year): Line 9 minus Line 17. If revenue exceeded expenses, it's a positive number. If you spent more than you brought in, it's negative.
• Line 19 (Net assets or fund balances at beginning of year): What you reported on last year's Line 21. For first-time filers, this is your bank balance plus any assets (equipment, inventory, prepaid expenses) minus any liabilities (unpaid bills, loans) on day one of the tax year.
• Line 20 (Other changes in net assets): Rare. Corrections to prior years, board-designated reserve transfers. Most organizations leave this blank.
• Line 21 (Net assets at end of year): Line 18 plus Line 19 plus Line 20. This should match your bank balance plus assets minus liabilities on the last day of the tax year. If it doesn't, you have a bookkeeping error somewhere.

How do you complete Part II: Balance Sheets?

Part II is a snapshot of what the organization owns and owes at the beginning and end of the year. Most booster clubs have simple balance sheets: a checking account, maybe a savings account, some prepaid expenses, and little or no liabilities. Assets (Lines 22-30): - Line 22 (Cash, savings, investments): Bank balances on the first and last day of the year. Do not include funds held by third parties (a spirit-wear vendor holding your deposits) unless you legally own them.

• Line 23 (Land and buildings): Original purchase price minus accumulated depreciation. Few booster clubs own real property; skip if you don't.
• Line 24 (Other assets): Equipment (a concession trailer, sound system, uniforms in inventory), prepaid insurance, deposits, receivables (money owed to you). If total other assets exceed $5,000, attach a schedule describing each ^[1].
• Line 25 (Total assets): Sum of Lines 22-24. Liabilities (Lines 26-29): - Line 26 (Total liabilities): Unpaid bills, loans, credit-card balances, deferred revenue (someone prepaid for next year's event) as of the balance-sheet date. Many all-volunteer groups have zero liabilities; if you pay bills promptly and carry no debt, leave this blank. Net Assets (Line 30): - Line 27-30 (Net assets or fund balances): Line 25 minus Line 26. This must match Line 21 from Part I. If it doesn't, recheck your entries; a mismatch means the return is mathematically wrong and the IRS will reject it or send a notice. The balance sheet at the beginning of the year (Column A) must match the end-of-year balance sheet from your prior 990-EZ. If you're filing for the first time and don't have a prior return, construct a beginning balance sheet from your bank statement and any asset records on the first day of the tax year.

How do you complete Part III: Statement of Program Service Accomplishments?

Part III describes what you actually did with the money. The IRS requires narrative for your primary program activity and any others that represent significant time or expense ^[1]. Most booster clubs and PTOs have one main mission ("support the school's music program," "fund youth baseball," "provide scholarships and extracurriculars") and report that. For each program service: - Description: 2-4 sentences explaining the activity. "We funded uniforms, instrument repairs, and competition travel for 85 student musicians. We hosted a spring concert and provided scholarships to three students for summer music camp."

• Grants and allocations: Dollar amount given directly to individuals or other organizations for this program (pulls from Part I, Line 10).
• Program service expenses: Dollar amount spent delivering this program (pulls from Part I, Lines 11-16, allocated to program vs. management/fundraising). You'll break this down further in Part IV if required. If you ran multiple distinct programs (a scholarship fund, a sports-equipment fund, a facility-improvement fund), list each. If your organization had one unified mission, one program description covers it. Don't pad or invent accomplishments. The IRS cross-checks Part III against your actual expenses. A narrative claiming "we served 500 families" paired with $12,000 in total expenses will raise questions if there's no reasonable cost-per-family logic.

How do you complete Part IV: List of Officers, Directors, and Key Employees?

Part IV lists everyone who governed or managed the organization during the year. Include all board members (president, vice president, secretary, treasurer, at-large directors) and any key employees (paid staff with significant decision-making authority). Most booster clubs and PTOs are all-volunteer, so the "compensation" column is all zeros ^[1]. For each person, report: - Name and title

• Average hours per week: Be honest. A treasurer who spends 3 hours a week on bookkeeping during the school year and 1 hour in summer averages 2-3 hours. The IRS isn't auditing hours; they want to confirm governance wasn't a sham.
• Reportable compensation: W-2 wages and 1099-MISC payments. Volunteer reimbursements for out-of-pocket expenses are not compensation. A board member who drove to a meeting and got $12 for mileage at the IRS standard rate: not compensation. A board member who received a $1,000 "thank-you" payment: that's compensation and probably a problem unless your bylaws and conflict-of-interest policy explicitly allow it and the amount is reasonable for services rendered.
• Employee benefits and deferred compensation: Health insurance, retirement contributions. Rare in volunteer groups. If any officer or director received compensation over $100,000, you must attach a detailed explanation in Schedule J ^[1]. If any officer or director had a family or business relationship with another officer, director, or key employee, disclose it in Schedule L ^[1]. A common mistake: failing to list all board members. If your bylaws say you have seven directors, but you list only four on the 990-EZ, the IRS may question you are actually following your governing documents.

How do you complete Part V: Other Information?

Part V is a series of yes/no questions about governance, transactions, and activities. Answer every question. Leaving a line blank invites scrutiny. The most relevant for booster clubs and PTOs: - Line 33 (Significant changes to organizational documents): Did you amend your bylaws or articles of incorporation? If yes, attach the amended documents or a summary in Schedule O ^[1].

• Line 34 (Unrelated business income over $1,000): If you earned income from a trade or business unrelated to your exempt purpose, and it exceeded $1,000, check yes and file Form 990-T ^[2]. Selling advertising in a program book, renting out your equipment, or operating a concession stand open to the public (more than members) can trigger this. Confirm with the IRS if you're unsure.
• Line 35a (Gaming activities): Did you conduct bingo, pull-tabs, raffles, casino nights? If yes, complete Schedule G ^[1]. Most states also require a separate gaming license and annual report.
• Line 35b-c (Fundraising events, sales of inventory): If you held special events or sold goods, answer yes and confirm your gross revenue is reported correctly in Part I.
• Line 36 (Grants to organizations or individuals): If yes, complete Schedule I ^[1].
• Line 37a-b (Political campaign activity or lobbying): Did you endorse candidates or spend money to influence legislation? Booster clubs and PTOs are 501(c)(3) organizations; political campaign activity is absolutely prohibited, and substantial lobbying puts your exemption at risk ^[3]. If you check yes to 37a, consult an attorney immediately.
• Line 38 (Donated services): Did volunteers provide professional services (legal, accounting, IT) that you would have otherwise paid for? Estimate the fair-market value. This doesn't change your financials, but the IRS wants to see the scope of volunteer support.
• Line 39-40 (Governance policies): Do you have a written conflict-of-interest policy, whistleblower policy, document-retention policy? Many small organizations answer no; the IRS hasn't required them for 990-EZ filers, but having them is good practice.
• Line 43 (Website): If you have a public website, list the URL. The IRS can view it.
• Line 44a-c (Books in care of): Name and address of whoever holds the financial records. Usually the treasurer. The IRS may request to inspect the books; they need to know who to contact.
• Line 44d (Location of books): Physical address where records are kept. A home address is fine if that's where the treasurer stores the files. If any question requires a detailed explanation, attach Schedule O and reference the line number ^[1].

Which schedules must you attach to the 990-EZ?

The IRS requires specific schedules based on your activities and financials. The instructions for each schedule are included in the Form 990-EZ package. The most common for booster clubs and PTOs: Schedule A (Public Charity Status and Public Support): Required for nearly all 501(c)(3) organizations filing the 990-EZ ^[1]. It confirms you meet the IRS definition of a "public charity" rather than a "private foundation." Most booster clubs, PTOs, and youth sports leagues qualify under Section 509(a)(2) (receipt of substantial support from program-service revenue, membership dues, and contributions from the public) or Section 170(b)(1)(A)(vi) (governmental unit or publicly supported organization). You'll calculate a public-support percentage using five years of revenue data. If your organization is fewer than five years old, you use the years you have. If you fail the public-support test, you may be reclassified as a private foundation, which has stricter rules and higher filing costs. Schedule B (Schedule of Contributors): Required if any single donor gave over $5,000 during the year ^[1]. You list each donor's name, address, and total contributions. The public version of your 990-EZ redacts donor names; only the IRS sees them. If a donor gave $5,000 or less but the gift exceeded 2 percent of Line 1 (total contributions), you must also list them if their aggregate gifts were over $5,000. A booster club that received $4,000 in small-dollar donations and a $6,000 grant from a foundation reports the foundation on Schedule B but not the 50 parents who gave $80 each. Schedule C (Political Campaign and Lobbying Activities): Required if you answered yes to Part V, Line 37a or 37b. If you engaged in any lobbying (even a single email to a legislator urging support for a bill), you must complete this schedule and stay within the IRS limits ^[3]. For most booster clubs and PTOs, the answer to Line 37 should be "no," and you skip Schedule C. Schedule G (Supplemental Information Regarding Fundraising or Gaming Activities): Required if gross receipts from gaming or special events were over $15,000, or if you answered yes to Part V, Line 35a ^[1]. You'll detail each event or gaming activity: name, gross revenue, direct expenses, prizes, net proceeds. Most raffles trigger Schedule G. Schedule L (Transactions With Interested Persons): Required if you had loans, business transactions, or excess-benefit transactions with officers, directors, key employees, or their family members ^[1]. A board member's spouse catered your fundraiser for $2,000: reportable on Schedule L, and you must document that the price was fair-market value. A director loaned the organization $5,000 interest-free: reportable. Schedule O (Supplemental Information): Used to explain or expand any line on the 990-EZ. If Part I, Line 16 (Other expenses) is over $10,000, attach Schedule O and itemize ^[1]. If Part V requires narrative, put it here. Schedule O is your catch-all for transparency. Other schedules exist (Schedule E for private schools, Schedule M for non-cash contributions, Schedule N for liquidations or significant dispositions), but they're rare for typical booster clubs and PTOs. If the 990-EZ instructions say "complete Schedule X if...," read the condition and answer honestly. Filing without a required schedule will prompt an IRS notice.

What are the most common mistakes treasurers make on the 990-EZ?

After reviewing hundreds of booster-club and PTO returns, these errors appear again and again: Gross vs. net confusion on fundraisers. Report gross receipts on Line 5a or 6a, then subtract direct costs on 5b or 6b. Don't net them out before you report. A spirit-wear sale that brought in $10,000 and cost $4,000 for shirts: report $10,000 gross, $4,000 cost, $6,000 net. If you report only the $6,000, the IRS has no idea how much you actually handled. Misclassifying revenue. A parent buys a $100 ticket to your gala: that's a special event (Line 5), not a contribution (Line 1), unless the ticket price is $25 and they clearly intended $75 as a donation. The IRS cares because contributions and fundraising revenue are treated differently for public-support tests and unrelated-business-income analysis. Missing schedules. If you ran a raffle with $16,000 in ticket sales, you must file Schedule G. If you skip it, the IRS will send a notice and may penalize the return. Part I, Line 21 not matching Part II, Line 30. These are two ways of arriving at the same number: net assets at year-end. If they don't match, your books are wrong. Recheck your beginning balance sheet, revenue, expenses, and asset accounts. Not signing the return. The treasurer, another officer, or a board-authorized agent must sign Part VI under penalty of perjury ^[1]. An unsigned 990-EZ is not a valid return. If you file electronically through the IRS e-file system, you'll sign digitally via a PIN. Filing late without an extension. If you miss the deadline, penalties accrue at $20 per day ^[1]. File Form 8868 before the original deadline to buy six more months. Even if you can't complete the return, file the extension; it's a one-page form and it's free. Not keeping a copy. The IRS requires you to make your 990-EZ available for public inspection ^[4]. Keep a signed copy in your files and give a copy to the incoming treasurer when you hand off the role. Reporting volunteer hours as compensation. Volunteers are volunteers. A parent who helped at the concession stand for 40 hours is not an employee. Don't report their hours as payroll. If you reimbursed them for out-of-pocket supplies at cost, that's not compensation either. Over-reporting or under-reporting assets. Line 24 (Other assets) should include equipment, inventory, prepaid expenses, and receivables. Don't invent value for donated items you immediately distributed (a donated TV you raffled off: report the ticket sales, not the TV as an asset). Don't forget equipment you actually own (a $6,000 concession trailer sitting in someone's driveway is an asset).

Do you file the 990-EZ electronically or on paper?

You can file either way, but electronic filing is faster and less error-prone. The IRS Modernized e-File (MeF) system accepts 990-EZ returns through authorized e-file providers. Many tax-software packages (TaxAct, TurboTax Business, specialized nonprofit software) support 990-EZ e-filing. You'll need to create an e-file account, obtain a Taxpayer Identification Number (your EIN), and generate an e-file PIN. Paper returns go to the IRS address listed in the 990-EZ instructions, which varies by state ^[1]. Processing takes several months. The IRS doesn't send a confirmation letter for 990-EZ unless there's a problem, so treasurers often have no proof the return was received. If you file by mail, send it certified with return receipt requested. Beginning with tax year 2024, the IRS will phase in a requirement that all 990-series returns be filed electronically ^[1]. Check the current-year instructions to confirm the mandate applies to your filing; as of 2026, paper filing may still be permitted for small organizations, but expect it to disappear. If you e-file, you'll digitally sign the return using Form 8879-EO (IRS e-file Signature Authorization for Form 990 or 990-EZ). Print it, have the required officer sign it, and keep it with your records. The signature form is not sent to the IRS; it's your proof that the person who signed authorized the e-file submission.

What happens after you file the 990-EZ?

The IRS processes the return and posts it to the Tax Exempt Organization Search (TEOS) database within a few months ^[4]. Your return becomes public record; anyone can download it. GuideStar, Charity Navigator, and similar sites pull 990s from the IRS and republish them. Expect parents, potential donors, and local reporters to read what you filed. If the IRS finds an error, they'll send a notice to the address on Line 44 (or to your registered agent if you designated one). Common notices: - CP-165: A math error or missing schedule. The IRS calculated what they think the correct number is and adjusted your return. Respond if you disagree; otherwise, the adjustment stands.

• CP-515: The return is incomplete or unsigned. You have 30 days to file a corrected version.
• Letter 5260 or 5261: The IRS is auditing your return or requesting additional information. Respond by the deadline with the requested documents. For booster clubs and PTOs, audits are rare unless your return shows unusual transactions (large unexplained expenses, related-party loans, political activity) or you failed to file for multiple years. If you discover a mistake after filing, file an amended 990-EZ by submitting a new return with the "Amended return" box checked at the top ^[1]. Include an explanation of the changes in Schedule O. Don't ignore errors; the IRS prefers you correct them voluntarily. Your state may require a copy of the 990-EZ as part of annual charity registration or raffle licensing. Confirm with your state attorney general's office or charity registration bureau. Some states (California, for example) require a separate state filing (Form RRF-1) and a filing fee; the federal 990-EZ alone doesn't satisfy state law. Once processing is complete, give a copy of the filed return to your successor treasurer and to the board president. Include a cover memo summarizing the year's finances and flagging any unusual items or open issues. The next treasurer will need last year's return to complete this year's return (Part II, Column A pulls from last year's Part II, Column B).

When should a treasurer use the 990-EZ instead of the 990 or 990-N?

The choice isn't optional; the IRS specifies which form you must use based on gross receipts and total assets ^[1]: - Gross receipts under $50,000: File Form 990-N (the e-Postcard). It's an online-only form with eight questions, no financial detail, and no schedules. It takes 10 minutes. You cannot file the 990-EZ or 990 unless your gross receipts actually exceed $50,000 or you choose to file a more detailed return voluntarily.

• Gross receipts $50,000 to $199,999 and total assets under $500,000: File Form 990-EZ. This is the sweet spot for most booster clubs, PTOs, and youth sports leagues.
• Gross receipts $200,000 or more, or total assets $500,000 or more: File the full Form 990. It's nine core pages, plus Part V (a detailed checklist), Part VI (governance), Part VII (compensation), Part VIII (revenue detail), Part IX (expense detail by function), and often Schedules A, B, D, G, I, and O. Most volunteer treasurers hire an accountant at this point because the penalties for errors are steep and the complexity is real. You can voluntarily "file up." A booster club with $45,000 in receipts can file a 990-EZ instead of a 990-N if they want to show more transparency or meet a grant-maker's requirement. You cannot "file down": if your receipts are $75,000, the 990-N is not an option. If you're near the $50,000 threshold, be conservative. The IRS defines gross receipts as all revenue before expenses. A booster club that ran a $30,000 fundraiser (with $20,000 in costs) and received $25,000 in donations has $55,000 in gross receipts, not $35,000 in net. File the 990-EZ.

What records must a treasurer keep to support the 990-EZ?

The IRS requires you to maintain "books and records" that substantiate every line on the 990-EZ. If audited, you must produce them. Keep these records for at least three years after the filing deadline (longer if state law or your bylaws require it): - Bank statements: Every month, every account.

• Receipts and invoices: Every check written, every deposit, every credit-card transaction. If you paid a vendor $1,200, you need the invoice showing what you bought.
• Donation records: A list of donors, amounts, and dates. If a donor gave over $250, you must provide a written acknowledgment (and keep a copy) to allow them to claim a tax deduction ^[5]. If a donor gave over $5,000, you reported them on Schedule B; keep their name and address on file even if you redacted it from the public return.
• Meeting minutes: Board approval for major expenses, officer elections, bylaw amendments, conflict-of-interest disclosures. If Line 10 shows a $5,000 scholarship, the minutes should show the board voted to award it.
• Contracts and agreements: Fundraiser contracts, vendor agreements, facility-use permits, raffle licenses.
• Payroll records (if applicable): W-2s, 941s, state withholding, unemployment filings. If you paid anyone, you need employment records.
• Asset ledgers: A list of equipment and other fixed assets, purchase dates, costs, depreciation. If Part II, Line 24 shows $8,000 in other assets, you need a schedule explaining what they are.
• Prior-year 990s: You'll need them to complete this year's return, and the IRS can request them. Store records securely. Many treasurers keep paper in a binder and digital copies in a cloud folder (Google Drive, Dropbox) shared with the president. When you hand off the role, give the incoming treasurer access to the entire archive. A common disaster: the outgoing treasurer deletes the files or loses the external hard drive, and the new treasurer has to reconstruct a year of transactions from bank statements alone. The BoosterLedger Treasurer Kit includes a file-naming and folder-structure guide that maps to 990-EZ line numbers, so you can find a receipt in 30 seconds instead of 30 minutes when the IRS asks for documentation.

Frequently asked questions

What does a treasurer do in a club or booster organization?

The treasurer maintains financial records, processes deposits and payments, reconciles bank accounts, prepares monthly financial reports for the board, files required IRS and state forms (including the 990-EZ), and ensures the organization follows its budget and financial policies. In most booster clubs and PTOs, the treasurer is a volunteer board officer, not a paid employee.

What is Form 990 and how does it differ from the 990-EZ?

Form 990 is the IRS annual information return for tax-exempt organizations. The 990-EZ is a shorter version for organizations with gross receipts between $50,000 and $200,000 and assets under $500,000. The full 990 is required when receipts reach $200,000 or more, or assets reach $500,000 or more. The 990 is nine core pages plus detailed schedules; the 990-EZ is four pages.

What is a 990 tax form used for?

The 990 (including the 990-EZ) is not a tax return in the traditional sense; most 501(c)(3) organizations don't pay federal income tax. Instead, it's an information return reporting revenue, expenses, assets, program activities, governance, and compliance. The IRS uses it to monitor if the organization still qualifies for tax-exempt status. The public uses it to evaluate transparency and financial health.

Can I file the 990-EZ by hand, or must I use software?

You can complete the 990-EZ by hand and mail it, but electronic filing is faster, less error-prone, and will soon be required for all organizations. If you file on paper, follow the line-by-line instructions in the IRS package, use blue or black ink, type or print clearly, and send it certified mail with return receipt requested. Many treasurers use spreadsheet software to organize the data before transcribing it to the form.

How long does it take to prepare a 990-EZ for the first time?

Plan 8 to 15 hours if your books are organized and you have clean monthly ledgers. First-time filers often underestimate the time: gathering receipts, categorizing every transaction, calculating cost of goods sold for fundraisers, completing required schedules, and writing program descriptions. If your records are incomplete or you inherited a mess from the prior treasurer, add another 10 to 20 hours for reconstruction.

What happens if I file the 990-EZ late?

The IRS penalty starts at $20 per day, up to the lesser of $10,500 or 5 percent of gross receipts. If you file more than 330 days late, the penalty can reach $5,000 for small organizations. If you fail to file for three consecutive years, the IRS automatically revokes your tax-exempt status. File Form 8868 before the deadline to get an automatic six-month extension with no penalty.

Do I need to hire an accountant to file the 990-EZ?

Not required. Many volunteer treasurers complete the 990-EZ themselves if their financials are straightforward and they have clean records. An accountant costs $800 to $2,500 for a typical booster-club or PTO 990-EZ. Consider hiring help if you have unusual transactions (loans, related-party deals, unrelated business income), missing records, or gross receipts near the $200,000 threshold where you'll soon need the full 990.

Can I amend a 990-EZ after I file it?

Yes. File a corrected 990-EZ with the "Amended return" box checked at the top of the form. Include Schedule O explaining what you changed and why. The amended return replaces the original in the IRS database and in public disclosure. File amendments as soon as you discover an error; the IRS is more lenient if you correct mistakes voluntarily before they audit.

Where do I find my organization's prior-year 990-EZ?

Check your files first; the outgoing treasurer should have given you a copy. If not, search the IRS Tax Exempt Organization Search database at irs.gov/teos. Returns are public within a few months of filing. You can also request a copy from GuideStar (now Candid) or contact the IRS directly using Form 4506-A, though that takes weeks.

What is the difference between gross receipts and net income on the 990-EZ?

Gross receipts (Part I, Line 9) is all revenue before expenses: donations, fundraiser sales, dues, investment income. Net income (Part I, Line 18) is gross receipts minus total expenses. The IRS uses gross receipts to determine which form you must file and to calculate penalties. Net income affects your net-asset balance and future budgets, but it doesn't change your filing requirement.

Do I report volunteer hours or in-kind donations on the 990-EZ?

Volunteer hours: only as a narrative in Part III or Part V, Line 38, to show the scope of volunteer support. You don't report them as revenue or expense. In-kind donations (donated goods or services): report them on Line 1 if they meet IRS criteria (something you would have purchased, you have a fair-market-value estimate, and you actually used the item for your exempt purpose). Most booster clubs don't report in-kind donations because recordkeeping is difficult and the items are consumed immediately.

Can I file a 990-EZ if gross receipts are under $50,000?

Yes, you can voluntarily file the 990-EZ or the full 990 even if gross receipts are under $50,000. Some grant-makers or state agencies require the detailed return. However, the IRS doesn't require it; you can file the simpler 990-N postcard instead. Once you file a 990-EZ, the IRS may expect you to continue unless receipts drop significantly.

What do I do if the 990-EZ shows a loss (expenses exceeded revenue)?

Report it accurately. Part I, Line 18 will be negative, and Part II, Line 21 (net assets at end of year) will be lower than Line 19 (beginning net assets). A single year of loss isn't a problem if you have reserves. If you run losses for multiple years and net assets approach zero, the board needs to adjust the budget or fundraise more; the organization can't operate indefinitely without money.

Do booster clubs and PTOs need Schedule A for the 990-EZ?

Yes, nearly all 501(c)(3) organizations must file Schedule A to confirm public-charity status and calculate the public-support percentage. Booster clubs, PTOs, and youth sports leagues typically qualify under Section 509(a)(2) or 170(b)(1)(A)(vi). If you don't file Schedule A when required, the IRS may reclassify you as a private foundation, which has stricter rules and higher costs.

Sources

1. IRS Form 990-EZ Instructions: Organizations with gross receipts between $50,000 and $200,000 and assets under $500,000 must file Form 990-EZ; penalties for late filing start at $20 per day.
2. IRS Form 990-T Instructions, Exempt Organization Business Income Tax Return: Tax-exempt organizations with unrelated business income over $1,000 must file Form 990-T and pay unrelated business income tax.
3. IRS Publication 557, Tax-Exempt Status for Your Organization: 501(c)(3) organizations are absolutely prohibited from political campaign activity and limited in lobbying; substantial lobbying can jeopardize tax-exempt status.
4. IRS Tax Exempt Organization Search (TEOS): Filed 990-series returns are public record and posted to the IRS TEOS database; organizations must make returns available for public inspection.
5. IRS Publication 1771, Charitable Contributions Substantiation and Disclosure Requirements: Donors who give $250 or more must receive a written acknowledgment from the charity to claim a tax deduction; organizations must keep copies of acknowledgments.