Some restaurants are re-sizing their portions' sizes due to the economy. When the IRS updated the Form 990 in 2008, they designed it to re-size itself through 2010 – effectively having it apply to more nonprofit organizations each year.
The Form 990 EZ is a smaller version of the 990 (think of a kid’s meal vs. a double burger deluxe). Initially, organizations with under a $1 million in revenue and under $2.5 million in assets could file the EZ. In 2009, the threshold dropped to $500,000 in revenue and $1.25 million in assets. And now, for the 2010 tax year (return filed in 2011 or later), the threshold drops to $200,000 in revenue and $500,000 in assets.
The result? More nonprofit organizations will have to file the full form 990. This requires planning and time.
Let us help make the process as smooth as possible for you. We are happy to help you with the nuances that come with 990 Form preparation. Please post a comment below or, for more information on our nonprofit accounting services, contact Skoda Minotti at 440-449-6800.