Part XII. Financial Statements and Reporting

Check the box in the heading of Part XII if Schedule O (Form 990) contains any information pertaining to this part.

Line 1. Accounting method. Indicate the method of accounting used in preparing this return. See General Instructions, Section D, earlier. Provide an explanation on Schedule O (Form 990) (1) if the organization changed its method of accounting from a prior year, or (2) if the organization checked the “Other” accounting method box.

Line 2. Financial statements and independent accountant. Answer “Yes” or “No” to indicate on line 2a or line 2b whether the organization’s financial statements for the tax year were compiled, reviewed, or audited by an independent accountant. An accountant is independent if he or she meets the standards of independence set forth by the American Institute of Certified Public Accountants (AICPA), the Public Company Accounting Oversight Board (PCAOB), or another similar body that oversees or sets standards for the accounting or auditing professions.

If “Yes” on either line 2a or 2b, answer “Yes” or “No” on line 2c to indicate whether the organization has a committee that is responsible under its governing documents or through delegation by its governing body for (i) overseeing the compilation, review, or audit of the financial statements; and (ii) the selection of an independent accountant that compiled, reviewed, or audited the statements. Answer “Yes” only if both (i) and (ii) apply. If this process has changed from the prior year, describe on Schedule O (Form 990).

Line 3a. Uniform Guidance, 2 CFR Part 200, Subpart F. Answer “Yes” if, during the year, the organization was required under the Uniform Guidance, 2 CFR Part 200, Subpart F, to undergo an audit or audits because of its receipt of federal contract awards. The Uniform Guidance, 2 CFR Part 200, Subpart F, requires states, local governments, and nonprofit organizations that spend $750,000 or more of federal awards in a year to obtain an annual audit.

Line 3b. Required audits. If “Yes” on line 3a, indicate whether the organization has undergone the required audit or audits. Answer “Yes” if the audit was completed or in progress during the organization’s tax year. If the answer to line 3b is “No,” explain on Schedule O (Form 990) why the organization hasn’t undergone any required audits and describe any steps taken to undergo such audits.

Paperwork Reduction Act Notice. We ask for the information on these forms to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue

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law. Generally, tax returns and return information are confidential, as required by section 6103. However, certain returns and return information of tax-exempt organizations and trusts are subject to public disclosure and inspection, as provided by section 6104.

Estimates of taxpayer burden. The following table shows burden estimates based upon current statutory requirements as of October 1, 2025, for taxpayers filing a 2025 return. These include forms in the 990 series, schedules, and all the forms tax-exempt organizations attach to their tax returns. Time spent and out-of-pocket costs are presented separately. Time burden includes the time spent preparing to file and to file, with recordkeeping representing the largest component. Out-of-pocket costs include any expenses incurred by taxpayers to prepare and submit their tax returns. Examples include tax return preparation and submission fees, postage and photocopying costs, and tax preparation software costs. Note that these estimates don’t include burden associated with post-filing activities. IRS operational data indicate that electronically prepared and filed returns have fewer arithmetic errors, implying lower post-filing burden.

Reported time and out-of-pocket cost burdens are national averages and include all associated forms and schedules, across all preparation methods and taxpayer activities. As a result, the averages don’t necessarily reflect a “typical” case. Most taxpayers experience lower-than-average burden, with taxpayer burden varying considerably by taxpayer type.

Comments and suggestions. We welcome your comments concerning the accuracy of these time estimates or suggestions for future editions. You can send us comments through IRS.gov/ FormComments . Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send your return to the above address. Instead, see General Instructions, Section E, earlier, for the location for filing your return.

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