Processing 990 federal returns

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This topic provides general information about the 990 federal application and processing guidelines.

Multiple-unit input screens available

You can create multiple copies of the same input screen. When more than one input screen is used, each copy is referred to as a "unit." Screen Sale, for example, is a multiple-unit input screen that enables you to use a separate input screen for reporting each sale.

The following table lists the multiple-unit input screens and the maximum number of units available for each screen. These maximums are the number of units possible up to the per-return limit of 5000 input screens.

For information about accessing multiple-unit input screens, refer to the Multiple-unit input screens.

Multiple-unit input screen Number of units possible
Screen 114-2, Report of Foreign Bank Accounts (FBAR), Page 2 No practical limit
Screen 926, Transfer of Property 250
Screen 926-2, Transfer of Property Additional Information 250
Screen 3115, Change in Accounting Method No practical limit
Screen 4562, Depreciation and Amortization 250
Screen 4684, Casualty and Theft Loss No practical limit
Screen 4684PY, Prior Year Casualty and Theft Loss No practical limit
Screen 4720-2, Individuals Subject to Excise Taxes 250
Screen 4720SchC, Schedule C - Initial Tax on Excess Business Holdings 250
Screen 8824, Like-Kind Exchanges No practical limit
Screen Event, Income with Directly Related Expenses General Information 250
Screen Event-2, Income with Direct Expenses and Cost of Goods Sold 250
Screen Event-3, Expenses Directly Related to Income 250
Screen Event-4, Expenses Directly Related to Income 250
Screen EventPF, Income with Directly Related Expenses General Information 250
Screen Even-2PF, Income and Directly Related Expenses 250
Screen Fac, Hospital Facility Information and Needs Assessment 250
Screen Fac-2, Hospital Financial Policies and Collections 250
Screen Fac-3, Hospital Medical Care Information 250
Screen Notes, Notes and Bonds 250
Screen NotePF, Notes and Bonds 250
Screen Rent, Rent and Royalty Property 250
Screen Rent-2, Rent and Royalty Income and Expenses 250
Screen Sale, Sale of Non-Inventory Assets 1000
Screen SchK, Supplemental Information on Tax Exempt Bonds 250

States and municipalities available

The following states and municipalities are available.

Arizona California California PPT
Connecticut Florida PPT Georgia
Georgia PPT Illinois Indiana
Indiana PPT Kentucky PPT Maryland
Maryland PPT Massachusetts Michigan
Michigan PPT Minnesota New York
South Carolina Virginia Wisconsin PPT

Tax assumptions

Activity unit numbers are generally used to tie several input screens together. For instance, the information coded as 4562, Form Rent, Unit #1 is linked to Screen Rent, Unit #1.

Capacities

The following list outlines the capacities of the 990 return.

  • Handles multiples of application services, special events, and rental activities.
  • Transfers depreciation and amortization from Form 4562 to the relevant forms for all activities.
  • Accommodates up to 50 different tax preparers.
  • Handles dollar amounts up to $999,999,999,999.99.
  • Allows up to 5,000 units of each multi-unit input screen.
  • Handles up to 32,000 assets in the integrated asset module.
  • Dynamically allocates client data as needed to minimize disk space requirements.
  • Accommodates 30,000 active clients at the same time.
  • Allows up to 65,500 statements.

990 Procedures

Frequently asked questions

User tips

Form 990 versus Form 990-EZ

When the organization is not a private foundation, the application prepares Form 990. To prepare Form 990-EZ, enter X in the Prepare Form 990-EZ field in Screen 990.

Activity unit number in Screens 926, Event, EventPF, Fac, Notes, NotePF, Rent, and SchK

If you enter data in Screen 926, Event, EventPF, Fac, Notes, NotePF, Rent, or SchK, a unit number is required on each screen. If the unit number is omitted, the information does not transfer to the appropriate locations on the return.

Placement of income on return

The application determines the placement of income on the return based on the various code options you select. To properly calculate the return, consider entering information in the appropriate fields provided for the following:

  • Type of income
  • Unrelated business code
  • Exclusion code
  • Form 990-T code (for placement of unrelated business activity)

Non-operating private foundation

The calculation of Form 990-PF, Part I, column c for a non-operating private foundation is different from the calculation for an operating private foundation. Use these codes for the Type of private foundation field in Screen 990PF to identify which type of private foundation is being reported.

  • For a private operating foundation, leave the field blank. All columns on Form 990-PF, Page 1 are completed.
  • For a non-operating private foundation with no charitable activity income, enter 1 in the field. Form 990-PF, Part I, column c shows a zero for both Total Revenues and Total Expenses because the foundation is not subject to the calculation of Adjusted Net Income.
  • For a non-operating private foundation with charitable activity income, enter 2 in the field. Form 990-PF, Part I, column c is calculated as follows:
    • Revenue is only reported on lines 10 and 11 and excludes investment income.
    • Expenses entered in Screens Even-2PF and Rent-2 appear if the income is included on lines 10 and 11.
    • Expenses entered in Screen ExpPF appear as entered for Adjusted Net Income.