990 taxes explained: what booster treasurers must file

Last updated 2026-07-25

what is form 990

Form 990 is the annual information return that tax-exempt organizations file with the IRS. It's not a tax return in the traditional sense, most 501(c)(3) and 501(c)(4) organizations owe zero federal income tax, but the IRS still wants an annual accounting of money in, money out, and who got paid. That's why people call it "990 taxes" even though no tax is usually due. The IRS describes it plainly: exempt organizations "generally must file annual returns" reporting revenues, expenses, and activities, and the form is used to verify the organization still qualifies for exemption ^[1]. Skip it and the consequences are real, even without a tax bill attached. There are four versions depending on your group's size, and picking the wrong one is one of the most common mistakes new booster and PTO treasurers make. We'll break those down below. If you want a plain walkthrough of the form itself, see form 990 and irs form 990.

what is the 990 tax form, exactly, and why do people call it that

People say "990 tax form" out of habit, the same way people call every tissue a Kleenex. Technically it's an information return under Internal Revenue Code section 6033, which requires most exempt organizations to file annually so the IRS (and the public) can see how the organization raised and spent money ^[2]. No income tax is calculated on the core 990 for a typical booster club or PTO with no unrelated business income. If your group runs a concession stand as a trade or business unrelated to your exempt purpose and nets meaningful profit, you might owe Unrelated Business Income Tax (UBIT) reported separately on Form 990-T, but that's rare for a typical youth sports booster club selling snacks at its own games ^[3]. So when someone at your league says "we owe 990 taxes," what they usually mean is "we have an annual filing obligation." Worth clarifying with your board early, it changes how people budget their time and worry.

which version of the 990 does my booster club or PTO file

Normally $50,000 or less	any	Form 990-N (e-Postcard)
Less than $200,000	Less than $500,000	Form 990-EZ (or full 990)
$200,000 or more	$500,000 or more	Form 990 (full)	The IRS sets the 990-N threshold at organizations whose gross receipts are "normally $50,000 or less" [4]. The 990-EZ / full 990 breakpoints ($200,000 gross receipts, $500,000 total assets) come from the IRS's own instructions for which return to file [5]. Most small booster clubs and PTOs live in the 990-N lane. A single big fundraiser year (a large raffle, a capital campaign for new uniforms or a scoreboard) can bump you into 990-EZ territory, so check your numbers every year rather than assuming last year's form still applies. See 990n and form 990-n for the e-Postcard specifics, and 990-tax-form for a breakdown of all four versions side by side.

This depends entirely on gross receipts and total assets for the year, not on how big your group feels. | Annual gross receipts | Total assets | Form required |

what happens if we miss the deadline or skip filing entirely

The 990 (in any version) is due on the 15th day of the 5th month after your organization's fiscal year ends. For a calendar-year group (fiscal year ending December 31), that's May 15 ^[6]. Miss one year and nothing dramatic happens immediately. Miss three years in a row and the law is automatic: the IRS states that "an organization that fails to file required Form 990-series returns for three consecutive years automatically loses its tax-exempt status," with no separate notice required by law before revocation takes effect ^[7]. This comes from IRC section 6033(j), added by the Pension Protection Act of 2006. Auto-revocation isn't a warning shot, it just happens on the filing due date of the third missed year, and the IRS then publishes the organization on its Auto-Revocation List ^[8]. If your booster club shows up there, donations stop being tax-deductible to donors, and some banks and school districts will ask about your status before renewing accounts or facility agreements. Getting reinstated means filing Form 1023 or 1023-EZ again and often paying a user fee, plus back-filing missed returns. It's a paperwork headache that's entirely avoidable with a calendar reminder.

what does a treasurer do (and does filing the 990 fall on them)

Short answer: usually yes, filing the 990 lands on the treasurer's desk, even though it's technically the board's collective responsibility. What does a treasurer do day to day? A club or booster treasurer tracks income and expenses, reconciles the bank account, keeps receipts and check requests organized, reports balances to the board at meetings, and makes sure required filings (federal 990, state charity registration, sales tax if applicable) get done on time. In a volunteer-run booster club or PTO, the treasurer is often the only person who touches the books regularly, which is exactly why handoffs between treasurers go wrong so often. What does a treasurer do in a club specifically? Same core job, scaled to a smaller org: collect dues or fundraiser proceeds, pay vendors and refs or umpires, keep a simple ledger, and hand the board a clean report each month. What does a treasurer of a club do differently from a PTO treasurer? Not much, structurally. The dollar amounts and the fundraising mix (raffles, concessions, sponsorships) differ, but the bookkeeping discipline is identical: every dollar in and out gets a paper trail. What is a treasurer, in plain terms? The person the board trusts to be the financial memory of the organization between meetings. It's not a glamorous role and it's rarely paid, but it's the one job where sloppiness has real consequences: lost exemption, an IRS letter nobody expected, or a state charity office asking questions six months after the treasurer who knew the answers has moved away.

do we owe any actual tax with our 990

For most booster clubs and PTOs recognized as 501(c)(3), no. The exemption covers federal income tax on activities related to your exempt purpose (supporting the team, the school, the program). Two situations where tax can actually show up: unrelated business income (UBIT) on Form 990-T, and payroll taxes if you pay anyone as an employee rather than an independent contractor or volunteer. UBIT applies to income from a trade or business regularly carried on that isn't substantially related to your exempt purpose, think renting out space for unrelated commercial use, not a bake sale ^[3]. Most concession stands run by volunteers for the group's own events fall outside UBIT because of exceptions for activities not regularly carried on and for work performed substantially by volunteers, but the rules have nuance. Confirm with the IRS and, if the numbers are meaningful, a tax preparer familiar with exempt organizations. State tax is a separate question entirely. Sales tax on concession sales, raffle proceeds, and merchandise varies by state, and some states require a separate state income/franchise tax filing even for exempt federal filers. Confirm with your state's department of revenue and your state charity registration office, since "exempt from federal tax" doesn't automatically mean "exempt from every state filing."

what records does a treasurer need before filing the 990

Before you sit down to file (or before you hand things to a preparer), gather: your EIN and prior year's 990 filing confirmation, a full-year income and expense summary, a list of major fundraisers and gross receipts from each, board member names and any compensation paid, and a copy of your governing documents (bylaws, articles of incorporation) if this is your first filing or you've had governance changes. If you're the incoming treasurer and none of this exists in an organized form, that's normal, unfortunately. A shocking number of booster clubs and PTOs run on a shoebox of receipts and a Venmo history. Start by pulling twelve months of bank statements and reconstructing income and expense categories from there; it's tedious but it works. This is the exact gap a State-Personalized Treasurer Kit is built to close: a one-time $99 kit gives a new treasurer state-specific forms, a filing calendar, and templates so you're not reconstructing a year of transactions from memory during your first board meeting.

how is the 990 different from a raffle license or state charity registration

These are three separate obligations that new treasurers routinely confuse. The 990 is federal, filed with the IRS, annual, and tied to your tax-exempt status. State charity registration (sometimes called a solicitation license) is state-level, required in most states before you solicit donations from the public, and renewed annually or biennially with your state attorney general's charity office or secretary of state. A raffle license is a separate, often local or state gaming/gambling permit required before you legally run a raffle, entirely apart from your tax filings. Missing the 990 risks your federal exemption. Missing state charity registration can mean fines or a cease-and-desist on fundraising in that state. Running a raffle without the correct license can be a straight-up gambling law violation regardless of your nonprofit status. Confirm requirements for all three with the IRS, your state charity regulator, and your state or local gaming authority, since none of them substitute for the others.

what happens after we file, does anything become public

Yes. Form 990, 990-EZ, and full 990 filings (not 990-N, which has minimal data) become public documents. The IRS makes them available, and third-party sites like ProPublica's Nonprofit Explorer and GuideStar/Candid republish them for anyone to search, including parents, donors, and reporters. This matters for booster clubs because your 990 shows compensation to officers, largest vendors, and program spending. Sloppy or inconsistent numbers year over year invite questions at the next parent meeting. Treat the 990 as a document your most skeptical booster parent will eventually read, because eventually one will.

how do we catch up if we've already missed filings

First, check your status on the IRS Tax Exempt Organization Search tool to see if you're already on the Auto-Revocation List ^[8]. If you're not yet revoked but behind, file the missing returns as soon as possible, the 990-N e-Postcard has no late fee, but 990-EZ and full 990 can carry penalties for late filing of $20 to $125 per day depending on the organization's gross receipts, per IRS guidance on failure-to-file penalties for exempt organizations . If you've already been auto-revoked, you'll need to apply for reinstatement, typically via Form 1023 or the streamlined Form 1023-EZ, and you may qualify for retroactive reinstatement if you apply within 15 months of the revocation date and meet the IRS's reasonable cause criteria . This is exactly the scenario where getting a tax professional or attorney experienced with exempt organizations involved is worth the cost, the paperwork and reasonable-cause narrative matter.

quick answers: what a treasurer does and how it connects to the 990

Since so many new volunteers land on this page searching some version of "what does a treasurer do," here's the short version tied back to filing duty. What do treasurers do? Keep the books, report to the board, and make sure required filings happen. What a treasurer does in practice is mostly unglamorous: reconciling statements, filing receipts, writing checks, and tracking deadlines on a calendar so nothing sneaks up. What does a treasurer do in a club, specifically around tax time? Confirms which 990 version applies based on that year's gross receipts, gathers the numbers, files (or hands them to whoever files), and keeps a copy in the club's permanent records for the next treasurer. The job is smaller than it sounds until the year you skip it. Then it's the biggest job in the organization.

Frequently asked questions

What is a 990 tax form?

It's the IRS's annual information return for tax-exempt organizations, required under IRC section 6033. It reports income, expenses, and activities so the IRS and public can confirm the group still qualifies for exemption. Despite the nickname, most filers owe no actual tax with it; only unrelated business income triggers a separate tax form, Form 990-T.

What is Form 990 used for?

The IRS uses it to verify an organization still meets the requirements for tax-exempt status and to make nonprofit finances publicly transparent. Donors, watchdog sites, and journalists also use published 990s to check compensation, program spending, and financial health before donating or reporting on an organization.

What is the 990-N and who qualifies?

Form 990-N, the e-Postcard, is for organizations whose gross receipts are normally $50,000 or less, per IRS guidance. It's filed online only, has eight data fields, and has no paper version or late fee, though missing it three years running still triggers auto-revocation just like the other 990 versions.

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

A treasurer tracks all income and expenses, reconciles bank statements, reports finances to the board, and ensures required filings (federal 990, state charity registration, any raffle license) happen on time. In small volunteer organizations, the treasurer is often the sole person keeping the full financial picture, which makes clean recordkeeping and handoffs especially important.

Do booster clubs and PTOs really have to file a 990 every year?

Yes, if they're recognized as tax-exempt (typically 501(c)(3)). Filing some version of the 990 annually is a condition of keeping that exemption. Even the smallest club with under $50,000 in gross receipts must file the 990-N e-Postcard; there's no exemption from filing based on being small, only a simpler form.

What happens if we miss three years of 990 filings?

The IRS automatically revokes your tax-exempt status after three consecutive years of missed 990-series filings, per IRC section 6033(j), with no separate warning notice required. Reinstatement requires reapplying for exemption (Form 1023 or 1023-EZ) and possibly back-filing missed returns and paying penalties.

Does filing a 990 mean we owe income tax?

Usually not. Most 501(c)(3) organizations owe no federal income tax on activities related to their exempt purpose. Tax can arise separately from unrelated business income (reported on Form 990-T) or from payroll tax obligations if the group pays employees, but the core 990 itself typically results in no tax due.

How do we know which 990 version to file?

Base it on that year's gross receipts and total assets. Under $50,000 gross receipts normally means Form 990-N. Under $200,000 receipts and $500,000 assets generally means 990-EZ (or full 990 by choice). At or above those thresholds, you file the full Form 990. Check every year since one big fundraiser can push you up a tier.

Is Form 990 public information?

Yes, for 990, 990-EZ, and full 990 filings. They're available through the IRS and republished by sites like ProPublica's Nonprofit Explorer, showing compensation, top vendors, and program spending. Form 990-N discloses much less, mainly the organization's name, address, and confirmation it filed.

What's the deadline for filing Form 990?

The 15th day of the 5th month after your fiscal year ends. For a calendar-year organization (year ending December 31), that's May 15. Organizations can request an automatic extension using Form 8868, but the underlying obligation to eventually file doesn't go away.

What does a club treasurer do differently from a PTO or booster treasurer?

Very little, structurally. All three track dues or fundraiser income, pay vendors, and report to a board. The difference is scale and fundraising mix (raffles and concessions for booster clubs, dues and school-tied fundraisers for PTOs), but the bookkeeping discipline and 990 filing obligation are the same across all of them.

Do we need a lawyer or accountant to file our 990?

For 990-N or a straightforward 990-EZ, many volunteer treasurers file it themselves using IRS instructions. If you have unrelated business income, paid staff, complex fundraising, or you're catching up on missed years and facing reinstatement, get a tax professional experienced with exempt organizations involved. This isn't legal or tax advice, just a practical read on when the DIY approach gets risky.

Sources

1. IRS, "Annual Exempt Organization Return: Who Must File": Exempt organizations generally must file annual information returns to confirm continued eligibility for exemption
2. 26 U.S. Code Section 6033: Statutory basis requiring exempt organizations to file annual information returns
3. IRS, "Unrelated Business Income Tax": Defines unrelated business income and when Form 990-T tax applies to exempt organizations
4. IRS, "Annual Electronic Filing Requirement for Small Exempt Organizations, Form 990-N (e-Postcard)": Organizations with gross receipts normally $50,000 or less may file Form 990-N
5. IRS, Instructions for Form 990-EZ: Gross receipts and total assets thresholds determining eligibility to file Form 990-EZ versus full Form 990
6. IRS, "Form 990 Series Which Forms Do Exempt Organizations File": Filing deadline is the 15th day of the 5th month after the organization's fiscal year end
7. IRS, "Automatic Revocation of Exemption": Organizations that fail to file required 990-series returns for three consecutive years automatically lose tax-exempt status
8. IRS, "Tax Exempt Organization Search": IRS tool to check an organization's exemption and auto-revocation status