ExpressTaxExempt Blog

Protect your Organization from IRS Penalties!

The IRS extended deadline for exempt organizations is less than two weeks away - August 15 to be exact! If your nonprofit or charity e-filed an IRS Form 8868 back in May, then you don’t have much time to left to file and avoid penalties! Here are a few ways to prevent penalty fees with your IRS filing.

E-file Right Away
The most sure fire way to defend your exempt organization from late filing fees is to file on time with the IRS. You’ll need to complete and transmit these required forms based on specific criteria:

  • IRS Form 990 - Organizations with gross receipts larger than $200,000 and total assets greater than $500,000
  • IRS Form 990-EZ - Organizations with gross receipts between $50,000 and $200,000 and total assets less than $500,000

Double Check Information
Not only is it important to e-file on time, but you also need to make sure you’re reporting the correct information. An inaccurate form is the same as an incomplete form to the IRS, which can also lead to penalties. Make sure your basic organization information is current and accurate. And make an effort to fully complete parts I through XII of your tax form.

Also, know which schedules you need to file along with your form and complete them as accurately as possible. With ExpressTaxExempt.com, our internal audit check scans your form entirely for any errors so you can transmit with virtually no mistakes.

Extension to the Rescue
Unexpected situations happen all the time, but sometimes they can leave us in less favorable positions. If you know you can’t e-file on time, save yourself from IRS penalties by filing a tax extension. For the August 15 deadline, you have the option to e-file IRS Form 8868 Part 2 for an additional, non-automatic 3-month extension. Before you get your hopes up, you must follow these two eligibility rules:

  1. 1. E-file an approved Form 8868 Part 1 back in May
  2. 2. Provide a valid reason why you need additional time

The IRS can reject your explanation and deny your extension request, which is why this form is considered non-automatic. If you never e-filed Part 1 or got approved for it, then you are extremely late and should e-file your tax return as soon as possible.

IRS Penalties
So what are these hefty fees you’ll pay out of pocket? They can easily reach up to thousands of dollars if you’re careless. For each day your return is late, the IRS charges $20 leading up to a maximum charge of $50,000 or 5% of your total gross receipts - and that’s only if your gross receipts are less than $1 million. Larger organizations with over $1 million in gross receipts incur $100 charges per day.

With our interview-style process, ExpressTaxExempt.com guides you step by step with easy “Yes or No” questions and accessible text spaces for explanations and monetary amounts. You can complete as much or as less as you want in one sitting and continue where you left off with our cloud-based capabilities.

Contact our U.S. - based e-filing professionals for assistance with your e-filing experience. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. You can also reach us 24/7 with support@ExpressTaxExempt.com.


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