Good Morning Folks, Lets Get Started Today!!!! We will continue our discussion on Grant Management & Administration. Those of us who have nonprofit organizations are required to file 990s What happens if my Form 990 is filed late? If an organization whose gross receipts are less than $1,000,000 for its tax year files its Form 990 after the due date (including any extensions), and the organization doesn’t provide reasonable cause for filing late, the Internal Revenue Service will impose a penalty of $20 per day for each day the return is late. The maximum penalty is $10,000, or 5 percent of the organization’s gross receipts, whichever is less. The penalty increases to $100 per day, up to a maximum of $50,000, for an organization whose gross receipts exceed $1,000,000. An organization that fails to file the required information return (Form 990, Form 990-EZ, or Form 990-PF) or e-Postcard (Form 990-N) for three consecutive tax years will automatically lose its tax-exempt status. The revocation of an organization’s tax-exempt status will not take place until the filing due date of the third year. For example, if your Form 990 is due on May 15, 2009 (for tax year 2008) and you do not file in 2009, 2010, or by May 15, 2011, you will lose your tax-exempt status on May 15, 2011. The IRS will not send additional notices once your tax-exempt status is automatically revoked.
Posted on: Thu, 24 Apr 2014 13:45:49 +0000
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