My organization was terminated. What do I need to know to file the final 990-EZ return?
62 views | Last modified 11/3/2022 1:08:02 AM EST | Added by ExpressTaxExempt Team

When an organization is terminated, certain information must be disclosed. Follow the steps below to file your organization’s final Form 990-EZ. 

  1. In the header area B of page 1, check the Final Return/terminated box and make sure the total assets (Part II Line 26 column B) equal zero. 
  2. In Part V, Line 36, answer "Yes" to the question "Did the organization undergo a liquidation, dissolution, termination, or significant disposition of net assets during the year?" 
    • Any organization that answered “Yes” on line 36 of Form 990-EZ is required to complete and attach Schedule N to the form. 
  3. Complete Schedule N (Form 990 or 990-EZ), Liquidation, Termination, Dissolution, or Significant Disposition of Assets. 
    •  Part I of Form 990 EZ Schedule N - Liquidation, Termination, or Dissolution - Include a description of the assets and any transaction fees, the date of distribution, the fair market value of the assets, and information about the recipients of these assets. 
    • Part II of Form 990 EZ Schedule N - Sale, Exchange, Disposition, or Other Transfer of More Than 25% of the Organization’s Assets- this must be used by organizations that file Form 990 or Form 990-EZ to report a liquidation of more than 25 percent of their net assets by a sale, exchange, or other disposition.

If your organization is liquidating a part of its assets, you must select “Yes” on line 36 of Part V, but you don't necessarily need to check the Final return/terminated box of header area B on page 1.

Schedule N must be completed if your organization selects Yes” on line 36 of Part V, even if the organization is not being terminated. 
 

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