Well, well, well…just like that, your annual nonprofit Form 990 deadline has come and gone. Although Form 990 due date 2018 has passed for organizations that operate on a calendar tax year (January – December), we have received several concerned calls from organizations. They are all asking what they should do since they missed Form 990 due date 2018 for tax returns.
While your options are few at this point, there is still life after missing the Form 990 deadline. Here are the next steps you should take to maintain compliance with the IRS.
*Your immediate action is required before your tax-exempt status is revoked*
Life After Missing The Form 990 Deadline
Long story short, the longer you wait to file the worse off your organization will be. The best advice that we can give you is to file Form 990 ASAP! Your penalties will only grow the longer you wait to file your 990 tax form.
Even though you have [technically] missed the deadline, you can avoid the following IRS penalties.
Late Filing Penalties
Organizations with gross receipts less than $1,020,000 for its tax year will have a penalty of $20/day for each day that the return is late. The maximum penalty for these organizations is $10,000 or 5 percent of the organization’s gross receipts, whichever is less.
Organizations with gross receipts more than $1,020,000 for its tax year will have a penalty of $100/day for up to a maximum of $51,000.
Penalties Against Responsible Person(s):
Did you know that individuals can be fined on behalf of an organization if the organization does not file during the fixed amount of time it has been given to fulfill its filing requirements?
Yep! Organizations which fail to file a completed return or provide proper information will be given a short grace period before penalties apply. Your organization will receive a letter from the IRS stating how long this period will be.
If no action has been taken after this time period expires, the person responsible for complying will be charged a penalty of $10/day, with a per capita of $5,000 for anyone return.
Filing Form 990 After the Deadline
Filing Form 990 is essential for your organization and should be completed in detail. TaxBandits offers a simplified process and provides all of our clients with informative resources to help you file your 990 nonprofit tax return correctly by following Form 990 instructions.
What You Need Before Filing
General information needed to e-file Form 990 include:
- EIN (Employer Identification Number)
- Tax Period
- GEN (Group Exemption Number)
- You will also need information to fill out any required schedules for your organization
Make Sure You File The Correct 990
I don’t think there is any worse nightmare than spending precious time filing the wrong Form 990 for your organization. Here is a brief description of the Form 990 Series; select the Form 990 that meets the financial status of your organization:
Organizations with gross receipts that are less than or equal to $50,000 file this form electronically.
Filed by organizations with gross receipts more than or equal to $200,000 or total assets equal to or greater than $500,000.
The Short Form Return of Organization Exempt From Income Tax filed by organizations with gross receipts less than $200,000 and $500,000 in total assets.
Filed by Exempt & Taxable Private Foundations as well as Non-Exempt Charitable Trusts which the IRS treat as private foundations.
Missing the Form 990 Deadline
IRS penalties are quickly accumulating, so if I were you, I would create a free TaxBandits account and start filing. Our filing process consists of a simplified, step-by-step interview-style process without the complex IRS terminology. At TaxBandits we take pride in providing tax-exempt organizations a safe, secure, and efficient e-filing process that will save you time and money.
If you have questions or concerns, please contact our experienced team of experts located in historic Rock Hill, SC, we are available by phone, live chat, and email in both English and Spanish for your convenience.
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