Form 990 Preparation for DC, Maryland & Virginia Nonprofits
Who must file IRS Form 990 and when is it due?
Most tax-exempt organizations with gross receipts of $50,000 or more must file Form 990 or 990-EZ annually with the IRS. The due date is the 15th day of the 5th month after fiscal year-end — May 15 for December 31 year-ends. An automatic 6-month extension is available. Three consecutive missed filings result in automatic revocation of tax-exempt status.
Why Nonprofits Come to Us for Form 990
We missed three 990 filings and lost our tax-exempt status
Automatic revocation is devastating: donors can no longer deduct contributions, grants become taxable, and reinstatement requires IRS application and $600–$850 fee. Prevention costs far less than recovery.
Part VII executive compensation disclosures are wrong and donors noticed
Form 990 Part VII requires disclosure of compensation for officers, directors, and key employees. Errors attract media attention, donor questions, and IRS scrutiny.
We have rental income and didn't know we owed UBIT
Nonprofits with income from unrelated business activities (rental income from debt-financed property, advertising, parking lots) owe Unrelated Business Income Tax and must file Form 990-T separately. Many organizations unknowingly skip this filing.
Our 990 functional expense allocation looks wrong to our major funder
Funders scrutinize the ratio of program expenses to management and fundraising costs on the 990. Incorrect functional expense allocation — like putting administrative salaries in program expenses — can trigger funder questions or audit requirements.
We filed late and owe a $20 per day penalty
Organizations with gross receipts over $1 million that file late face $105/day penalties, up to $54,000 per year. Smaller organizations face $20/day. Late filing also shows up on Charity Navigator and GuideStar, affecting donor confidence.
Our bookkeeper prepared our 990 and it was full of errors
Form 990 is a complex legal document — not a tax return in the traditional sense. Errors in Schedule B (donor disclosure), Schedule L (interested person transactions), or Schedule O (supplemental information) can create compliance problems and IRS inquiries.
Avoid Penalties and Revocation — Get CPA-Prepared Form 990s
Key Form 990 Terms Explained
- Automatic Revocation
- The IRS automatically revokes an organization's tax-exempt status if it fails to file a required annual return (Form 990, 990-EZ, or 990-N) for three consecutive years. Reinstatement requires a new application and, in most cases, payment of IRS user fees.
- Unrelated Business Income (UBIT)
- Income earned by a nonprofit from a trade or business that is regularly carried on and is not substantially related to the organization's exempt purpose. Nonprofits with $1,000 or more in gross UBIT must file Form 990-T and pay corporate income tax on net unrelated business income.
- Functional Expense Allocation
- The process of classifying all organizational expenses into three categories: program services, management and general, and fundraising. FASB ASC 958-720 requires all voluntary health and welfare organizations to present a Statement of Functional Expenses, and the 990 reflects this allocation.
Which Form 990 Does Your Nonprofit File?
| Feature | Gross Receipts | Assets Threshold |
|---|---|---|
| 990-N (e-Postcard) | Under $50,000 | Any (no financial data required) |
| 990-EZ (Short Form) | $50,000–$199,999 | Under $500,000 |
| 990 (Full Form) | $200,000+ | OR $500,000+ assets (any receipts) |
| 990-T (UBIT) | $1,000+ gross unrelated business income | Filed in addition to 990 |
| 990-PF (Private Foundation) | All private foundations | Any amount |
What's Included in Our 990 Preparation Service
Our Form 990 Preparation Process
Information Gathering
We provide a comprehensive organizer tailored to your organization: program descriptions, officer compensation, grant details, related party transactions, investment income, and prior-year return.
Functional Expense Allocation Review
We review your general ledger, interview program staff, and prepare a defensible expense allocation across program services, management, and fundraising — consistent with your activities.
Compliance Schedules
We prepare all required schedules: Schedule A (public support test), Schedule B (major donors), Schedule D (supplemental financial statements), Schedule L (related party transactions), Schedule O (explanations), and others as applicable.
UBIT Analysis
We identify any unrelated business activities (rental income, advertising, services to non-members), calculate net UBIT, and prepare Form 990-T if required.
Review, Filing & Extension
We prepare the complete return for your executive director/board president signature, file electronically, and manage extension requests to avoid late filing penalties.
DC, Maryland & Virginia 990 Requirements
Washington DC
DC nonprofits must also file DC Form FR-164 if they have DC income or activities. Charitable registration renewal with the DC Department of Consumer and Regulatory Affairs requires submission of the completed 990.
Maryland
Maryland does not require a separate state nonprofit return — the 990 satisfies state requirements. However, charitable registration renewal with the Secretary of State requires submission of the 990 and accepts electronic filings.
Virginia
Virginia does not require a separate state nonprofit return. Charitable registration renewal with the Virginia Department of Agriculture and Consumer Services requires the 990. Virginia accepts electronic 990 filings.
Form 990 Frequently Asked Questions
Get Your Form 990 Prepared by a Licensed CPA
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