ExpertHard1 markMultiple Choice
CPA · Question 71 · Area V: Entity Taxation
Which of the following tax-exempt organizations must file an annual information return (Form 990)?
Which of the following tax-exempt organizations must file an annual information return (Form 990)?
Answer options:
A.
A church.
B.
A private foundation with $1 million in assets.
C.
A federal agency.
D.
A charitable organization with gross receipts of $25,000.
How to approach this question
Form 990 Exceptions: CHRIST (Churches, High gross receipts <$50k (990-N), Religious orders, Internal support groups, Societies (missionary), Tax-exempt federal agencies). Private Foundations MUST file.
Full Answer
B.A private foundation with $1 million in assets.✓ Correct
Private foundations are required to file an annual information return (Form 990-PF) regardless of gross receipts. Churches and certain government agencies are exempt.
Common mistakes
Thinking churches must file.
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