02 February 2017 Form 990-EZ update includes quick-help buttons to help filers avoid common errors The 2016 version of Form 990-EZ, Short Form Return of Organization Exempt From Income Tax, has been updated to include new quick-help buttons filers can use to retrieve pop-up instructions for various sections of the form where errors are commonly made. The IRS announced the new form in a January 31, 2016, press release (IR-2017-14), in which IRS Commissioner Koskinen noted that a third of paper-filers of Form 990-EZ had an error on their form last year. The error rate for electronically filed returns was much lower (1%), but less than half of the 263,000 Forms 990-EZ filed last year were electronically filed. Commissioner Koskinen stated that the IRS hopes that the new form will help filers avoid problems that could result in follow-up from the IRS. The new help buttons appear as blue question-mark boxes scattered throughout the form — 29 in total. Clicking on the boxes reveals a pop-up display that includes instructions for filling out the specific section of the form, as well as links for further guidance. Filers will need Adobe Acrobat Reader and Internet access to access the help boxes and links; however, filers can print and mail the forms to the IRS once they are completed. Nonetheless, the IRS still encourages organizations to file electronically. While the new help boxes are intended to help avoid common mistakes, the IRS reminds filers that the boxes do not replace the Form 990-EZ instructions, which filers should also review when competing the form. Form 990-EZ is due on the 15th day of the fifth month after an organization's tax year ends — i.e., May 15 for calendar-year filers. Small and mid-size tax-exempt organizations meeting the Form 990-EZ filing thresholds have received additional IRS guidance in the form of pop-up instructions within the most recent Form 990-EZ, available on the IRS.gov website. Most organizations exempt from income tax under Section 501(a) must file a Form 990 series return. While certain types of organizations are not eligible to file Form 990-EZ, most organization with gross receipts less than $200,000 and total assets at the end of the year less than $500,000 may generally file Form 990-EZ instead of Form 990. The pop-up instructions are focused on what the IRS considers common errors, but organizations should be sure to also thoroughly review the full Form 990-EZ instructions before filing their return. — For more information about EY's Exempt Organization Tax Services group, visit us at www.ey.com/ExemptOrg.
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