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Form 990 Preparation – A Complete Guide for Virginia Nonprofit Organizations

Understanding Form 990

Form 990 preparation is an annual requirement for most tax-exempt organizations. Unlike a tax return that calculates taxes owed, Form 990 is an information return that provides the IRS, donors, and the public with detailed information about an organization’s finances, governance, and program activities. At Nova Tax & Accounting Services , our Form 990 service ensures accurate, timely filings that reflect your mission and maintain compliance.

Which Form Does Your Organization File?

Form 990-N (e-Postcard) – For organizations with gross receipts under $50,000. Filing is online through the IRS website; no paper return is required.

Form 990-EZ – For organizations with gross receipts under $200,000 AND total assets under $500,000.

Form 990 (long form) – For organizations with gross receipts over $200,000 OR total assets over $500,000.

Form 990-PF – For private foundations. All private foundations file this form regardless of revenue level.

Key Schedules to Form 990

Schedule A – Public Charity Status and Public Support. This schedule is required for all section 501(c)(3) organizations filing Form 990 or Form 990-EZ. It demonstrates that the organization meets the public support test or qualifies under another public charity category.

Schedule B – Schedule of Contributors. Nonprofits must report donors who contributed over certain thresholds. The schedule is filed with the IRS but is not publicly available for most organizations.

Schedule D – Supplemental Financial Statements. Required for organizations with endowments, escrow accounts, art collections, or other complex assets.

Schedule G – Supplemental Information Regarding Fundraising or Gaming Activities. Required for organizations that conduct fundraising events, professional fundraising campaigns, or gaming activities.

Schedule I – Grants and Other Assistance to Organizations, Governments, and Individuals in the United States. Required for organizations that make grants or provide other assistance.

Schedule J – Compensation Information. Required for organizations that pay certain officers, directors, trustees, or key employees more than specified thresholds.

Schedule L – Transactions with Interested Persons. Required for organizations that engage in transactions with interested persons (officers, directors, key employees, substantial contributors).

Filing Deadlines

Form 990 is due by the 15th day of the 5th month after the end of the organization’s tax year. For calendar-year organizations, the deadline is May 15. A six-month extension is available by filing Form 8868.

Failure to file Form 990 for three consecutive years results in automatic revocation of tax-exempt status. Reinstatement is a lengthy and expensive process.

Common Form 990 Preparation Errors

  • Failing to provide complete and accurate information

  • Not attaching required schedules

  • Reporting incorrect compensation information

  • Failing to disclose potential conflicts of interest

  • Miscalculating the public support test on Schedule A

Virginia State Filing Requirements

In addition to federal Form 990 filing, Virginia nonprofits that solicit donations must register annually with the Virginia Department of Agriculture and Consumer Services (VDACS) . The registration is due by May 15 for calendar-year organizations.

New Form 990 Transparency Requirements

The IRS has announced plans to revise Form 990 to require clearer reporting on government contracts, grants, and fiscal sponsorship arrangements. Nonprofits should prepare for enhanced scrutiny of how public funds are managed and reported.

Why Choose Nova Tax & Accounting for Form 990 Preparation?

At Nova Tax & Accounting Services , we specialize in Form 990 preparation for tax-exempt organizations across Virginia and Washington DC. Our team ensures accurate, timely filings that reflect your mission and maintain compliance. We help you navigate complex schedules, document governance policies, and prepare for new transparency requirements.

Schedule your free consultation today to discuss your nonprofit’s filing needs.