Last week marked the May 17, 2021 Form 990 deadline, a major due date for nonprofits and tax-exempt organizations. If your organization didn’t file a 990 series form and you are starting to wonder if you should have, here is what you need to know about the IRS filing requirements, penalties, and deadlines for nonprofits.
IRS Form 990 Filing Requirements
The IRS requires nonprofits and tax-exempt organizations to file a 990 series form every year to stay compliant. Depending on organizations’ size and purpose, they file Form 990, 990-PF, 990-EZ, or 990-N.
990 series forms give the IRS a clear picture of a nonprofit’s financial position and activities. The IRS also releases this information to the public so donors and community members can access it online. If you aren’t sure which form is right for your nonprofit, click here to find out.
If your organization is based in California, visit this blog to find out about CA state filing requirements.
Was I Supposed to File Form 990 by May 17th?
If you’re staying plugged in to tax news for nonprofits, it may feel like there is a Form 990 deadline every month. This is because nonprofits have different deadlines based on their tax period.
May 17, 2021 was a big deadline for the nonprofit sector but your Form 990 deadline is always the 15th day of the fifth month following the end of your tax year. If that date falls on a weekend or holiday, the IRS pushes it back to the business day.
For nonprofits operating on a calendar tax year, the Form 990 deadline for 2020 was May 17, 2021. Running a small nonprofit? Click here to find out how you can file Form 990-N in 3 simple steps.
Form 990 Penalties
Filing Form 990 late or not at all can result in penalties for your organization. The IRS fines nonprofits $20 a day for late forms. The maximum penalty is $10,000 and it cannot exceed 5% of an organization’s gross receipts.
If you fail to file Form 990 for three consecutive years, the IRS can automatically revoke your organization’s tax exempt status.
Filing Form 990-PF? Visit this blog to find out about common mistakes and keep your organization away from IRS penalties.
How to File Form 990
If you missed the May 17, 2021 deadline, the best thing to do is file Form 990 as soon as possible. Recently, the IRS implemented an e-filing mandate for the nonprofit sector. Working with an e-file provider is the best way to file quickly and accurately and adjust to new IRS requirements.
ExpressTaxExempt supports Form 990, 990-PF, 990-EZ, and 990-N and makes filing easy. You will get access to automatic error checks, great U.S.-based support, and instant notifications on your return’s status. After you enter your information and fix any mistakes, your Form 990 is transmitted directly to the IRS so you can get back in good standing as fast as possible.