Get 2011 Instruction 990-OR 990-EZ (SCH L). Instructions For Schedule L (Form 990 Or 990-EZ)

Line 25 of the Schedule L reports the amount of unappropriated retained earnings, and Schedule M-2 is the “Analysis of Unappropriated Retained Earnings,” which is calculated based on the information made available by the company's books.

Schedule L (Form 990) is used by an organization that files Form 990 or 990-EZ to provide information on certain financial transactions or arrangements between the organization and a disqualified person(s) under section 4958 or other interested persons.

In order to qualify to file Form 990-EZ, a nonprofit should have gross income of more than $50,000, but less than $200,000 during the past fiscal year. In addition, the total valuation of all assets should be less than $500,000.

Schedule I (Form 990) is used by an organization that files Form 990 to provide information on grants and other assistance made by the filing organization during the tax year to domestic organizations, domestic governments and domestic individuals. Report activities conducted by the organization directly.

Schedule L is necessary because refunds and rebates already received on real estate taxes reduce the amount of additional standard deduction for which a taxpayer may be eligible. The standard deduction is the portion of income that is not subject to tax that can be used to reduce your overall tax bill.

The full-length 990 form is required for nonprofits who gross $200,000 or more in total receipts, or total assets of $500,000 or more. The 990-EZ and 990-N are for nonprofits who grossed less during the year (over $50,000 in total gross receipts and under $50,000 respectively). The 990-PF is for private foundations.

Basically, a Schedule L - Balance Sheet contains the Assets which equals the Liabilities and Equity (Capital Stock, Paid in Capital and Retained Earnings) that existed in the corporation on the first and last day of the tax year.

To be required to file Form 990, a nonprofit should have a gross income of more than $200,000 during the past fiscal year. Also, nonprofits with assets collectively valued greater than $500,000 must file Form 990, even if their revenue is less than $200,000. Form 990 is a beast of an information return.