Avoid Nonprofit IRS Penalties with These Tips
Attention tax exempt organizations, a major 990 deadline is coming up on November 15. Is this your deadline to file? If so, we hope you file by the deadline so you can avoid facing major penalties from the IRS.
Because the 990 deadline can vary based on different organization’s tax years, knowing your deadline can be confusing. That’s why we’re here to help today by going over the due date in full detail and by listing the penalties you will have to deal with if you don’t file in time!
When is Form 990 Due?
Form 990 is due is due on the 15th day of the 5th month after the tax year for your organization ends. If your organization is on a calendar tax year then your Form 990 deadline is on May 15th.
However, if you have a fiscal tax year your deadline could be different based on when it ends. For example, if your fiscal tax year ended in June then your Form 990 is due by November 15.
Also, back in May, if you used Exempt Organization Tax Extension Form 8868 to get a 6-month extension on your 990 form then your deadline is also on November 15, and it’s time to file. Unfortunately, you can’t get a 2nd extension for this tax return.
Form 990 Late Filing Penalties
If you fail to file your Form 990 by the deadline you will instantly have penalties to face. If your organization has less than $1,000,000 in gross receipts for the entire year and you don’t provide reasonable cause for missing the deadline the IRS will charge you $20 per day for every day that your return is late.
This penalty will continue to accrue until it reaches the maximum penalty of $10k or 5% of your organization’s total gross receipts, depending on which amount is less. If your organization’s gross receipts are greater than $1,000,000 the penalty increases to $100 per day with a maximum penalty of $50,000.
Not only are the fees expensive but you will be putting your tax-exempt status at risk. Any organization that fails to file their Form 990 for three consecutive tax years will automatically lose their tax exempt status.
How To File Form 990 by the Deadline
With the help of TaxBandits you don’t have to worry about missing your Form 990 deadline because their interview style e-filing process will help you complete your form and instantly transmit it directly to the IRS.
TaxBandits offers Form 990, Form 990-N (e-Postcard), Form 990-EZ, and Form 990-PF, so you can quickly file the correct 990 Form for your organization. View pricing for each form here.
All you have to do is follow the simple step-by-step guide to create your free account, enter basic information about your organization, complete the form interview, review your information and audit report, pay for your form, and transmit it directly to the IRS. The entire process is completed in 5 simple steps!
We’re Here To Help
If you need any assistance with your Form 990 please don’t hesitate to contact the amazing, US-based, TaxBandits support team. We’re available Monday – Friday from 9 AM to 6 PM EST at 704.684.4751. We also offer live chat and 24/7 email support at support@TaxBandits.com.
