What is considered as deferred revenue in Form 990?
1.4k views | Last modified 9/22/2022 2:34:09 AM EST | Added by ExpressTaxExempt Team

Applicable To
990-PF 990-N 990-EZ 990 8868 1120-POL

Deferred revenue, also called unearned revenue, is the term used to describe advance payments a business receives for goods or services that will be provided or rendered in the future. The company that receives the prepayment adds the sum to its balance sheet as deferred revenue, a liability.

Deferred revenue is a liability since it represents money that has not yet been earned and represents customer-owed goods or services. On the income statement, the product or service is proportionally recorded as revenue as it is supplied over time.

Reporting information about deferred revenue on 990 forms

The information regarding the deferred revenue must be reported on Forms 990, 990-EZ and 990-PF. The organization should report the income that has been received but hasn't been earned as of the date of the balance sheet, according to its accounting method.

Form 990

Deferred revenue must be reported on Form 990, Part X - Balance Sheet, Line 19. Deferred revenue. 

Form 990-EZ

Deferred revenue must be reported on Form 990-EZ, Part II - Balance Sheets, Line 26. Total Liabilities.

Form 990-PF

Deferred revenue must be reported on Form 990-PF, Part II. Balance Sheets, Line 19. Deferred revenue. 

File your 990 forms with ExpressTaxExempt

ExpressTaxExempt, the industry-leading, IRS-authorized e-file provider, supports e-filing of Forms 990, 990-EZ,  990-PF, and many other forms.

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