IR-2017-14, January 31, 2017
WASHINGTON ¡ª The IRS announced today the release of an updated Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, that will help tax-exempt organizations avoid common mistakes when filing their annual return.
The updated Form 990-EZ includes 29 ¡°help¡± icons describing key information needed to complete many of the fields within the form. The icons also provide links to additional helpful information available on IRS.gov. These ¡°pop-up¡± boxes share information to help small and mid-size exempt organizations avoid common mistakes when filling out the form and filing their return.
¡°We¡¯ve been reviewing the areas of the form where exempt organizations encounter the most trouble,¡± said IRS Commissioner John Koskinen. ¡°One out of three paper filers has an error on their form. After reviewing these trouble spots, we developed this new option to help groups navigate the form. This common-sense approach is designed to make it easier for exempt organizations to avoid problems up front ¨C and avoid getting a follow-up contact from the IRS.¡±
On the new form, the help icons are marked in boxes with a blue question mark. The icons and underlying links work on any device with Adobe Acrobat Reader and Internet access. Once completed, filers can print Form 990-EZ and mail it to the IRS.
Although many large exempt organizations are required to file Form 990-series information returns electronically, the IRS encourages all exempt organizations to consider filing electronically.
In 2016, the error rate for electronically-filed 990-EZ returns was only 1 percent, compared to the 33 percent error rate in paper-filed returns. In 2016, the IRS processed over 263,000 Forms 990-EZ, with the majority of the filings ¨C 139,000 -- on paper.
A list of providers assisting with electronic filing is available on IRS.gov.
Exempt organizations should keep in mind that the new help icons do not replace the Form 990-EZ instructions. obÌåÓýrs should review the Form¡¯s instructions when completing a return and use the help icons as an additional tool.
The IRS also reminds exempt organizations that Form 990-series returns are due on the 15th day of the fifth month after an organization¡¯s tax year ends. Many organizations use the calendar year as their tax year, making May 15, 2017, the deadline to file for tax year 2016.