Two weeks ago, the IRS released the newest version of Form 990-EZ, which is the short version of its tax form and is for nonprofits with less than $1 million in 2008 revenue. The new form and its instructions are similar to the earlier version of the Form 990-EZ, but its updated schedules correspond with the new Form 990, which also takes effect in the 2008 tax year.
The filing threshold of the longer Form 990 was previously set at $100,000, but that threshold has been considerably raised. For the 2008 tax year, groups with less than $1 million in revenue can file the shorter Form 990-EZ. However, that threshold will drop to $500,000 for the 2009 tax year.
The release of Form 990-EZ comes less than a month after the IRS finalized instructions for the new Form 990, which received its first major update in more than 25 years.
Information taken from: Peter Panepento. “IRS Releases New Form 990-EZ." The Chronicle of Philanthropy. http://philanthropy.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.