Are there exceptions to filing Form 990?
The IRS has specifically stated that "every organization exempt from federal income tax under Internal Revenue Code section 501(a), must file an annual information return (990/990-EZ) unless the organization is specifically exempted by the Tax Code.
Some of the exception are listed below as follows:
1. A church, an inter-church organization of local units of a church, a convention or association of churches,
2. An integrated auxiliary of a church,
3. A church-affiliated organization that is exclusively engaged in managing funds or maintaining retirement programs,
4. A school below college level affiliated with a church or operated by a religious order, even though it is not an integrated auxiliary of a church,
5. Certain church-affiliated mission societies that conduct activities in foreign countries, or activities directed at persons in foreign countries,
6. An exclusively religious activity of any religious order,
7. A state institution, the income of which is excluded from gross income under section 115,
8. A corporation described in section 501(c)(1) [a corporation that is organized under an Act of Congress and is: a) an instrumentality of the United States, and b) exempt from Federal income taxes],
9. A black lung benefit trust described in section 501(c)(21) (required to file Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons),
10. A stock bonus, pension, or profit-sharing trust that qualifies under section 401(required to file Form 5500, Annual Return/Report of Employee Benefit Plan),
11. A foreign organization described in section 501(a) (other than a private foundation) that normally does not have more than $25,000 in annual gross receipts from sources within the United States and has no significant activity in the United States,
12. An exempt organization (other than a private foundation) having gross receipts in each tax year that normally are not more than $25,000). This is usually the most common exception used to exempt organizations from filing the Form 990.