ExpertHard1 markMultiple Choice
CPA · Question 63 · Area V: Entity Taxation
Which of the following organizations must file an annual information return (Form 990) with the IRS?
Which of the following organizations must file an annual information return (Form 990) with the IRS?
Answer options:
A.
A church.
B.
A federal agency.
C.
An organization with gross receipts less than $5,000.
D.
A private foundation.
How to approach this question
Recall the exceptions (CHRIST: Churches, High-schools (religious), Religious orders, Internal groups, Societies (missionary), Tax-exempt under $5k). Private foundations MUST file.
Full Answer
D.A private foundation.✓ Correct
Most tax-exempt organizations must file Form 990. Exceptions include Churches, religious orders, and organizations with less than $5,000 in gross receipts. Private foundations are required to file Form 990-PF regardless of receipts.
Common mistakes
Thinking churches must file Form 990.
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