𝐂𝐚𝐧 𝐘𝐨𝐮 𝐆𝐞𝐭 𝐚 𝐑𝐞𝐟𝐮𝐧𝐝 𝐖𝐡𝐞𝐧 𝐅𝐢𝐥𝐢𝐧𝐠 𝐅𝐨𝐫𝐦 𝟗𝟗𝟎?

𝐂𝐚𝐧 𝐘𝐨𝐮 𝐆𝐞𝐭 𝐚 𝐑𝐞𝐟𝐮𝐧𝐝 𝐖𝐡𝐞𝐧 𝐅𝐢𝐥𝐢𝐧𝐠 𝐅𝐨𝐫𝐦 𝟗𝟗𝟎?

If you’re filing Form 990, you might wonder if there’s a possibility of getting a refund. The answer is straightforward: No, Form 990 does not result in a refund. Here’s why:

Form 990 is an informational tax return used by tax-exempt organizations, such as nonprofits, to report their financial activities to the IRS. Unlike individual tax returns, where refunds can occur due to overpayments, Form 990 isn’t about taxes paid—because tax-exempt organizations generally don’t pay federal income taxes.

However, there is one exception to this rule. If your organization files Form 990-T to report unrelated business income (UBI) and you’ve made an overpayment of taxes on that income, you can claim a refund. In such cases, ensure the overpayment is clearly documented on the 990-T form.

Key Takeaways:
Form 990 is for reporting financial and operational activities—not for tax refunds.
Refunds are only possible in the context of overpaid taxes on unrelated business income (via Form 990-T).

Nonprofits should approach Form 990 filing as a way to maintain transparency, not as a means to recover funds. Proper bookkeeping and accurate filing are essential to avoid errors and maintain compliance with IRS regulations.

Need assistance with Form 990 or any related filings? Reach out for expert guidance!