990 Changes for 2019

Nonprofit organizations with gross receipts of $200,000 or more or total assets of $500,000 or more are required to file Form 990 for the tax year. The form for 2019 only has a few changes from 2018 that you should be aware of.

1. Exempt organizations are required to electronically file Form 990 for tax years beginning on or after July 2, 2019. This means organizations with a calendar year-end will need to electronically file their 990 for the 2020 tax year.  2019 will be the last tax year that calendar year-ends can paper file.  There are a few limited exceptions to this requirement.
2. Part IV, Checklist of Required Schedules, lines 26, 27 and 28 regarding related party transactions expands the individuals included in each question to include “creater or founder” or “substantial contributor”. 
3. Part X, Balance Sheet, line 5 regarding receivables from related parties and line 22 payables to related parties expands the question to specifically include “creator or founder, substantial contributor, or 35% controlled entity or family member of any of these persons”.
4. Part X, Balance Sheet has been updated to include a line for net assets without donor restrictions and a line for net assets with donor restrictions to coincide with FASB ASU 2016-14, Not-for-Profit Entities (Topic 958) Presentation of Financial Statements of Not-for-Profit Entities.  Previously there were three separate lines in this section – unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. 

Form 990s for nonprofits with a December 31 year-end are due May 15th.  A six month exension may be granted if filed by May 15th.

Posted by: Carrie Minnich, CPA