What To Do After Your Form 990 Has Been Rejected
As easy as it can be to submit a 990 form to the IRS, there is always the possibility that your form could be rejected. Figuring out why your return was rejected and how to correct it can be somewhat of a challenge.
An organization’s 990 form can be denied for a wide variety of reasons. Here are some common reasons why 990 tax returns can be rejected.
Lack of Exemption Status
Prior to filing a Form 990, an organization must have tax exemption status. Exempt organizations usually wait a full year after receiving exemption status before filing a 990 form.
To apply for exempt status, you will need to file IRS Form 1023.
Pending Tax Exempt Application
Although an organization has submitted a 1023 form, exemption status is not official until the organization receives a Determination Letter from the IRS. This letter will confirm tax-exempt certification and will provide other pertinent information.
If the IRS requests that your organization file a 990 form prior to receiving a Determination Letter, you should select the “Pending Application” option on the form. If not, your form will be applicable to rejection.
Incorrect Tax Year Periods
An organization’s tax year period (accounting period) must match the IRS database unless the organization terminates within the reporting tax year.
Correct tax year period dates can be found on previous 990 forms, the exemption application form, or by contacting the IRS tax exempt hotline at 1-877-829-5500. If your organization desires to change its tax year period, they must follow procedures mandated by the IRS.
Exemption Status is Automatically Revoked
Failing to file a 990 return for three consecutive years will result in an automatic loss of tax exempt status. Prior to filing a Form 990 return, you must reapply for exemption status with Form 1023 or 1024 and receive a Determination Letter from the IRS.
The IRS can be contacted directly to inquire about your status before filing.
Duplicate Tax Return
The IRS may have already approved a 990 return for the tax year your organization is attempting to file. A CPA, tax professional, or parent company may have already filed on your behalf. Be sure to clarify this to avoid unnecessary filing.
Re-Transmit Your 990 Return for Free
If you have previously e-filed your return with ExpressTaxFilings and it was rejected for errors, you can re-submit your 990 Information Return for FREE! Our comprehensive software ensures accuracy in completing the form with built-in features such as an Internal Audit Check and a detailed Worksheet to manage financial transactions.
Our US-Based Support Team and Expert Assistance provide clarification throughout the filing process along with other features such as Multiple Users, Reviewers and Approvers from your organization’s governing body allow access to review and add accurate information to the return.
If your return is rejected by the IRS after utilizing our system and its many exclusive features, the 990 Information Return can be corrected and retransmitted through our application, free of charge!
We’re Here To Help
If you need any assistance e-filing your Form 990 please don’t hesitate to contact the dedicated ExpressTaxFilings support team. We’re available over the phone Monday – Friday at 704.684.4751. We also offer live chat and you can take advantage of our 24/7 email support at support@ExpressTaxFilings.com.
