What are the program service revenues that must be listed in Form 990-EZ?
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Last modified 10/13/2021 9:35:08 AM EST |
Added by ExpressTaxExempt Team
Program service is a primary objective of a tax-exempt organization to fulfill the purpose or mission under which it was started. These organizations generally perform activities like adoptions, recreation for the elderly, rehabilitation, or publication of journals or newsletters.
The various program service revenues that must be included in Form 990-EZ are
Program-related investment income
The primary purpose of a program-related investment income for an organization is to accomplish a tax-exempt status rather than to gain a profit. Scholarship loans and low-interest loans to charitable organizations is a common example of program-related investment income.
Unrelated trade or business activities
Organizations that seldom conduct activities and generate fees (program service revenue) for the services provided are also considered program service activities. A common example will be an outdoor club where the members and nonmembers are charged for using the club’s premises.
Government fees and contracts
An organization that provides a service, facility, or product to a government agency and the payment received for those services will be considered a program service revenue.
Reporting program services conducted by your organization with ExpressTaxExempt’s Interview-based Filing Style
- Log into your ExpressTaxExempt account.
- On the dashboard, click on the "Start Return" button.
- Select the "Form 990-EZ" option on the list of Federal returns.
- Enter your organization details and click "Next."
- On the "Organization Tax Year" page, select the year you want to file the information return. Once done, the subsequent steps will be to fill the actual parts of the form.
- Under the Revenue section, select "Start" for Program Service Revenue. Now select Yes for the question, “Did you receive any program service revenues?”
- A popup appears and prompts you to add the following information
- Name of the Program Service
- Type of Program Service Revenue
- Total Revenue from this Program Service
- To add more than one program service revenue, click on the Add Another button.
- Now click Next and follow the subsequent steps as prompted.
- Review the details, Pay, and click the Transmit button to transmit your return to the IRS.
Reporting program services conducted by your organization with ExpressTaxExempt’s Form-based Filing Style
To report the program services conducted by your organization using our form-based filing, please go to Part I, Revenue, Expenses, and Changes in Net Assets or Fund Balances. Then, in line 2, enter the Program service revenue, including government fees and contracts.
To know how to report your organization's program service revenue in Form 990, click here.