IRS form 990 / form 990-EZ - Page II

Effective 6/8/99: Nonprofit organizations (except private foundations) must provide a copy of their exemption application and the previous three years’ annual information returns (IRS form 990 or IRS form 990 EZ)to anyone requesting them in person or in writing. Requests in person must be fulfilled the same day, and written requests must be fulfilled in 30 days.

Exceptions:

Note: IRS form 990 T and Schedule K-1 of form 1065 are not required to be disclosed.

Penalty: $20 for each day inspection was not permitted, up to $10,000 maximum per return.

Private Information—IRC [§6104]: Nonprofit organizations may request that certain information be withheld from the public (for example, trade secrets and patent process). For information to be withheld from the public, the Commissioner must determine that disclosure would adversely affect the nonprofit organization. 

– Identify the material to be withheld. Mark it "Not Subject To Public Inspection."
– List the reasons for withholding the material from public inspection.
– The request is required to be filed with the original documents.

Nonprofit organizations eligible to receive tax deductible contributions are listed in IRS Publication 78, Cumulative List of Organizations described in Section 170(c) of the Internal Revenue Code of 1986. 

A nonprofit organization may be dropped from the list if the record shows an IRS form 990 or form 990 EZ was required but was not filed. Contributions may continue to be deductible by the general public until the IRS publishes a notice to the contrary in the Internal Revenue Bulletin.

To request a copy of a previously filed return or to inspect a nonprofit organization's form 990 or form 990 EZ return through the IRS, use form 4506-A, Request for Public Inspection or Copy of Exempt Organization IRS form 990 (or IRS form 990 EZ). There is a fee of $1.00 for the first page and 15¢ for each additional page.

If a donor receives something of value for a contribution, a portion of the contribution may not be deductible. When funds are solicited through a fund raiser on a quid pro quo basis (value is received), the nonprofit organization is required to furnish a written statement to the donor indicating the tax deductible amount and an estimate of the value of goods or services received. This rule applies to payments exceeding $75 [IRC §6115]. The nonprofit organization is subject to a penalty up to $5,000 per event if it fails to provide the information required. [IRC §6714]

Nonprofit organizations receiving donations that are not deductible by the donor must state this in their solicitations for contributions. Membership dues used for lobbying expenses may not be deductible. Nonprofit organizations must disclose to members the amount that is not deductible. [IRC §6033]

Noncharitable (exempt) nonprofit organizations that engage in lobbying and political activities must report the information on IRS form 990 (not IRS form 990 EZ) and give notice to members as far as deductibility, or figure and pay the new proxy tax on IRS form 990 T whether or not they have gross income from an unrelated trade or business. If the nonprofit organization pays the proxy tax, the members’ dues are deductible. [IRC §162(e) and IRC §6033(e)]