Nonprofit Accounting
Nonprofit Management
Form 990-EZ: Who Can File It, the Thresholds and the Ledger Data Each Part Needs
Last updated: October 16, 2026 · Independent guide · We do not sell rankings or coverage.
Form 990-EZ is the short annual information return for tax-exempt organizations with gross receipts under $200,000 and total assets under $500,000 at year end. If your receipts are normally $50,000 or less you can submit the Form 990-N e-Postcard instead, and if you cross either 990-EZ limit you must file the full Form 990. The 2025 Form 990-EZ must be e-filed by the 15th day of the 5th month after your year ends.
The rule in brief
- Who can file: exempt organizations with gross receipts under $200,000 and end-of-year total assets under $500,000, except groups that must always file Form 990.
- Gross receipts: the sum of Part I lines 5b, 6c, 7b and 9, so costs netted against asset sales, events and inventory are added back.
- Smaller option: gross receipts normally $50,000 or less can use Form 990-N.
- Dates: e-file only; due May 15 for a calendar-year filer, with an automatic 6-month extension on Form 8868.
- Official source: IRS, Instructions for Form 990-EZ (2025), page last reviewed April 30, 2026. We checked the rules on October 16, 2026.
What the rule requires: the two 990-EZ tests
The IRS instructions say an organization can file Form 990-EZ if it has “gross receipts less than $200,000 and total assets at the end of the year less than $500,000.” Both conditions must be met. Total assets is the Part II line 25, column (B) figure “without reduction for liabilities,” so a mortgaged building counts at full book value.
Gross receipts are the total received from all sources “without subtracting any costs or expenses.” Because Form 990-EZ nets some costs inside Part I, Appendix B says: “Gross receipts are the sum of lines 5b, 6c, 7b, and 9 of Form 990-EZ, Part I.” Line 9 is total revenue, 5b is the basis and selling costs of assets sold, 6c is direct costs of events and gaming, and 7b is cost of goods sold. Unlike the 990-N test, which uses what your receipts “normally” are, the 990-EZ test looks at the current year.
Illustrative example (constructed, not a real organization):
| Item | Line | Amount |
|---|---|---|
| Total revenue | 9 | $188,000 |
| Basis of donated stock sold | 5b | $7,000 |
| Direct costs of the spring gala | 6c | $9,500 |
| Cost of T-shirts sold | 7b | $1,500 |
| Gross receipts | 5b + 6c + 7b + 9 | $206,000 |
This organization shows revenue under $200,000 but fails the test, so it must file Form 990. If you are near either limit, run this calculation from the trial balance before you choose a form.
Who cannot use Form 990-EZ, and who does not need it
The 2025 instructions require Form 990 at any size from sponsoring organizations of donor advised funds, hospital operators, section 501(c)(29) health insurance issuers, certain section 512(b)(13) controlling organizations and group return filers. Private foundations file Form 990-PF. If you do move up, our guide to Form 990 preparation from your accounting system covers the full return.
At the small end, an organization whose gross receipts are normally $50,000 or less “must submit Form 990-N if it doesn’t file Form 990 or 990-EZ.” “Normally” means $75,000 or less received or pledged in the first year, an average of $60,000 or less in years one and two, or an average of $50,000 or less over the preceding three years. Form 990-N is filed on IRS.gov with a Login.gov or ID.me account (IRS, October 9, 2026). Churches, interchurch organizations and conventions or associations of churches need not file Form 990 or 990-EZ at all.
Mapping each part of Form 990-EZ to your chart of accounts
The account numbers below follow the template in our nonprofit chart of accounts guide, which is mapped to the full Form 990.
| GL accounts | 990-EZ line | Note from the instructions |
|---|---|---|
| 4010 to 4050 gifts and grants; 4070 event gift portion | Line 1 | Donated goods at fair market value; no donated services or use of facilities |
| 4110 program fees, 4120 government contracts | Line 2 | Exempt function income |
| Dues with matching member benefits | Line 3 | Gift portion of dues goes to line 1 |
| 4310 interest and dividends, 4410 rents | Line 4 | No unrealized gains |
| 4320 realized gains | Lines 5a to 5c | Gross sale price, then basis and selling costs |
| 4210, 4220 events; raffles and bingo | Lines 6a to 6d | Gaming 6a, event revenue 6b, direct costs 6c |
| 4510 merchandise sales and COGS | Lines 7a to 7c | Excludes sales at events |
| 5010, 5020 grants and assistance | Line 10 | Explain on Schedule O |
| 6010 to 6200 pay, benefits, payroll taxes | Line 12 | Includes officer pay and director fees |
| 7010 to 7050 professional fees | Line 13 | Includes investment management fees |
| 7400 rent and utilities | Line 14 | Also depreciation and mortgage interest on property you occupy |
| 7100, 7300, 7500 to 7900, 8000, 8900 | Line 16 | Insurance, travel, meetings, other costs; describe on Schedule O |
| Unrealized gains, bad pledges, prior-period items | Line 20 | Explain on Schedule O |
| 1010, 1020, 1510, 1520 | Part II, line 22 | Cash and investments at book value |
| 1610 less 1690, land and buildings only | Line 23 | Not held for investment |
| 1210 to 1400, 1900 | Line 24 | Receivables, inventory, prepaids; describe on Schedule O |
| 2010 to 2500 | Line 26 | Describe on Schedule O |
| 3100, 3200 net assets | Line 27 | Column (B) must equal line 21 |
Three differences from the full return matter. Form 990-EZ has no functional expense columns. Investment management fees sit on line 13. And line 23 covers only land and buildings, while the full Form 990 reports equipment on the same line, so agree with your preparer where equipment goes and keep it consistent.
Part I: special events are split three ways
The instructions use a dinner sold for $400 with a retail value of $160. The $240 excess is a contribution reported on line 1 and again in parentheses on line 6b; the $160 is event revenue on line 6b; direct costs go on line 6c. Uncollectible pledges and refunds are not netted against line 1; they go on line 20.
Parts II to IV: balance sheet, programs and people
Every filer completes both balance sheet columns, and the IRS says you “can’t submit a substitute balance sheet.” Column (A) must match last year’s column (B), so lock prior-year balances once filed.
Part III describes your three largest programs by total expenses. Section 501(c)(3) and 501(c)(4) organizations must also enter expenses and grants for each program, which is why a program dimension on expenses pays off even at this size. Part IV lists every officer, director, trustee and key employee, paid or not, with weekly hours. Officer compensation is the greater of Form W-2 box 1 or box 5 for the calendar year ending with or within your tax year.
Parts V and VI: compliance questions
Line 35a asks whether unrelated business gross income was $1,000 or more, which also triggers Form 990-T; see our guide to Form 990-T and tagging UBTI in the ledger. Part VI applies only to 501(c)(3) organizations and covers lobbying, schools, transfers to non-charitable related organizations, and employees or contractors paid over $100,000.
Schedules that attach to Form 990-EZ
| Schedule | When a 990-EZ filer needs it |
|---|---|
| A, Public Charity Status | Every section 501(c)(3) organization |
| B, Contributors | Generally, $5,000 or more from any one contributor |
| C, Political and Lobbying | Political activity (line 46), lobbying (line 47) or proxy tax (line 35c) |
| E, Schools | Operating a school (line 48) |
| G, Fundraising and Gaming | Part II if event revenue plus event contributions exceed $15,000; Part III if gaming exceeds $15,000 |
| L, Interested Persons | Excess benefit transactions (line 40b) or officer loans (line 38) |
| N, Liquidation | Dissolution or significant disposition of net assets (line 36) |
| O, Supplemental Information | Explanations for lines 8, 10, 16, 20, 24, 26, 31, 33, 34, 35 and 44 |
For the support calculation behind Schedule A, see our guide to the Schedule A public support test.
Deadlines, e-filing and penalties
The return is due on the 15th day of the 5th month after year end (May 15 for a calendar year), moving to the next business day if that falls on a weekend or holiday. Form 8868 adds an automatic 6 months (IRS, Instructions for Form 8868, April 30, 2026). For a calendar-year 2025 return on extension, November 15, 2026 is a Sunday, so the return is due Monday, November 16, 2026.
The instructions say: “If you are filing a 2025 Form 990-EZ, you are required to file electronically,” and a paper return from a required e-filer is “deemed to have failed to file.” You file through a provider on the IRS list for tax year 2025, such as Tax990, Form 990 Online, Drake, Lacerte, TaxAct, Thomson Reuters CS Professional Suite or CCH. The IRS cautions that a listed package may not include “every possible schedule or attachment.”
A late return costs $25 a day, up to the lesser of $13,000 or 5% of gross receipts. A responsible person can be charged $10 a day, up to $6,500, after an IRS written deadline passes. Three consecutive years without a required return or notice automatically revokes exempt status.
Records you must keep
Keep records supporting income and deductions for “a minimum of 3 years from the date the return is due or filed, whichever is later.” In your return file, keep the trial balance, the account-to-line mapping, the gross receipts calculation, event worksheets with retail values, the Schedule B donor list and the Part IV compensation report. Some states that accept Form 990-EZ want accrual-basis amounts, so check Appendix G of the instructions.
What to set up in your systems to comply
- A 990-EZ line attribute on every account, next to any Form 990 line, so you can switch returns if you cross a limit.
- A saved gross receipts report that adds lines 5b, 6c and 7b back to total revenue, run each quarter.
- Separate event accounts for the gift portion, the exchange portion and direct costs.
- A program dimension on expenses for Part III totals.
- Separate accounts for line 20 items such as unrealized gains and written-off pledges.
- A donor report totaling each contributor’s gifts of $1,000 or more, the amounts the instructions use to find $5,000 Schedule B contributors.
Tax990 publishes prices of $109.90 for Form 990-EZ and $19.90 for Form 990-N, with Form 8868 free when paid with a return (Tax990 pricing, no date shown, checked October 16, 2026). Form 990 Online, run by the nonprofit Civic Leadership Project, is free for Form 990-EZ under $100,000 of gross receipts with a sliding fee from $41 above that, but does not support Form 990-N or 990-T (Form 990 Online, April 27, 2026). Both sell filing services.
How we researched this
We read the full 2025 Instructions for Form 990-EZ, the IRS Form 990-N page, the Form 8868 instructions and the IRS list of tax year 2025 Form 990-EZ e-file providers on October 16, 2026. We also reviewed the pages ranking for “Form 990-EZ,” including guides from Tax990, TaxBandits and MoneyMinder, all of which sell filing or bookkeeping products. None explained the gross receipts add-back or mapped ledger accounts to 990-EZ lines.
Related guides
- Form 990 Schedule B: Contributor Rules and Donor Data
- Statement of Functional Expenses: Template and How-To
Frequently asked questions
Can a nonprofit with $210,000 in revenue file Form 990-EZ?
No. Gross receipts must be under $200,000, and they are at least as large as total revenue because lines 5b, 6c and 7b are added back. An organization at $210,000 files the full Form 990 for that year.
Do we have to file Form 990-EZ if our receipts are under $50,000?
No. If your gross receipts are normally $50,000 or less, you can submit the Form 990-N e-Postcard instead. You may still choose to file Form 990-EZ, and some states or funders ask for it.
Do donated services count as revenue on Form 990-EZ?
No. The instructions say donated services and use of materials, equipment or facilities may not be reported on line 1, even if your financial statements record them under ASC 958. You can mention them in Part III program descriptions but not in the expense column.
When is our 990-EZ due if we filed Form 8868?
For a calendar-year 2025 return, the extension runs to November 15, 2026. That is a Sunday, so the return is due Monday, November 16, 2026.
Sources
- IRS, Instructions for Form 990-EZ (2025), page last reviewed April 30, 2026. irs.gov
- IRS, Annual electronic filing requirement for small exempt organizations, Form 990-N (e-Postcard), October 9, 2026. irs.gov
- IRS, Tax year 2025 exempt organizations Modernized e-File (MeF) providers, Form 990-EZ, May 1, 2026. irs.gov
- IRS, Instructions for Form 8868, page last reviewed April 30, 2026. irs.gov
- Tax990 (vendor), Pricing, no date shown, checked October 16, 2026. tax990.com
- Form 990 Online (Civic Leadership Project, sells filing services), home page and fees, April 27, 2026. form990.org
Sherman Hsieh
Independent analysis of enterprise software — ERP, CRM and more
