IRS Form 990, 990 EZ, and 990-N Rule Changes

The gross receipts and total assets thresholds for 990-EZ filers have been lowered for the 2010 tax year, from $500,000 in annual gross receipts to $200,000, and from $1,250,000 in total assets to $500,000.

In other words, a local union can file a Form 990-EZ (rather than a Form 990) if its annual gross receipts for tax year 2010 are less than $200,000 and if its total assets at the end of the tax year 2010 are less than $500,000. Local unions that formerly filed the 990-EZ will now have to file a 990 or 9990-N electronic postcard depending on their annual receipts and assets. The new thresholds are:

$0- $49,999 annual receipts/$0-$199,999 total assets

File form 990-N (this is filed electronically-there is no paper form. Even if you have no annual receipts, this form must be filed to retain your local non-profit status. (no IRS penalty for late filing)

$50,000 –$199,999 annual receipts/$200,000-$499,999

File form 990-EZ (IRS penalty for late filing)

More than $200,000 annual receipts/more than $500,000

File form 990 (IRS penalty for late filing)

These new regulations will require fewer mid to small sized locals to file the 990-EZ and more mid size locals will have to now file the much more detailed 990 tax form. Local union officers who are filing a 990 for the first time are urged to seek professional help to file the 990 form.

Click here for more information about IRS rule changes.