When it comes to taxes, just because nonprofit organizations are not required to pay federal income taxes, doesn’t mean that they don’t have strict IRS reporting requirements.
As a matter of fact, today is a major deadline for many nonprofits as they are required to file annual 990 returns with the IRS.
In this blog post, we’ll take a closer look at the IRS tax filing requirements of the nonprofit sector, and which organizations have a deadline today. Of course, if you are one of those organizations… we’ll share some tips for meeting or extending today’s deadline!
What is the IRS 990 Series of Tax Returns?
The IRS 990 Series of Tax Returns refers to a set of forms designed for tax-exempt organizations to report their financial information to the Internal Revenue Service (IRS). These organizations, including nonprofits, charities, and certain other tax-exempt entities, are required to file specific 990 forms annually.
The series includes various versions such asForm 990, Form 990-EZ, and Form 990-N (e-Postcard), each catering to different organizations based on their size and financial activities. There is even a specific 990 return that is reserved for private foundations, Form 990-PF.
Nonprofit organizations may also be required to file a Form 990-T. This form must be filed in addition to the 990 return by any organization that has generated $1,000 or more in unrelated business income. Unrelated business income, a.k.a UBI, is any revenue that is generated by the organization through an activity that is not directly related to its charitable purpose.
Form 990 serves as a comprehensive disclosure document, providing details about an organization’s mission, programs, and finances. These returns play a crucial role in promoting transparency and accountability within the nonprofit sector, as they offer the IRS and the public insight into the organization’s operations, ensuring compliance with tax laws and safeguarding the integrity of the tax-exempt status.
Which Nonprofits Have a 990 Return Deadline Today?
Nonprofit organizations can find their tax period on their IRS Determination Letter. This is what they receive when their organization is granted federal tax exemption.
Organizations operating on a fiscal tax year beginning on July 1st and ending on June 30th have an IRS 990 Deadline on November 15th.
Are There Consequences for Failing to File a 990 Return?
Yes, just like a taxpayer or a traditional business, nonprofit organizations are also subject to IRS penalties when they fail to file their 990 return on time. However, the greatest risk to an organization is the automatic revocation of their 501(c)(3) tax-exempt status. This can happen if an organization fails to file its required 990 return for three consecutive tax years.
What Filing Methods Are Available for 990 Series Returns?
While the IRS generally will accept paper copies of most tax forms, this is not true of any of the 990 Series. Starting in the 2021 tax year, the IRS mandated e-filing for all tax-exempt tax returns. While this shift was initially a challenge for organizations that were used to the traditional paper filing process, electronic filing is now recognized for all of its awesome benefits.
E-filing is more efficient, and secure, and yields more accurate tax returns. If your organization is seeking a simple e-filing solution that is complete with error checks using the IRS Business Rules, includes all applicable 990 Schedules, and allows you to collaborate with your team from a single secure account, check out Tax990, our sister product.
Is there an IRS Extension Available for 990 Series Returns?
Yes! With the exception of the 990-N (e-postcard), all of the other forms in the 990 series can be extended. By filing Form 8868 with the IRS on or before the deadline, tax-exempt organizations can extend their 990 deadline for up to 6 months. If your organization needs a solution for extending today’s 990 deadline, you can also file this with Tax990!
Ready to meet your 990 deadline with all the ease and accuracy that you have come to expect from TaxBandits? Create your free account and get started now!