This week marks the June 15, 2021 Form 990 deadline for nonprofits whose tax year ended on January 31. It’s also the due date for organizations that extended their initial January 15, 2021 Form 990 deadline.
If your organization has a June 15th deadline, here are our top tips to stay IRS-compliant and penalty-free.
Make A Deadline Day Plan
If your Form 990 deadline is June 15, 2021, it’s time to make a plan. You can either complete and transmit your return before midnight on June 15, or opt for an extension with Form 8868.
First, it’s important to assess what information you’ll need to report, and whether you have it prepared. If your organization received loans as a part of COVID-19 relief, you’ll need to include that information when you file Form 990. Visit this blog for the latest developments in COVID-19 relief for nonprofits.
If you’re ready to file, you can complete your return easily, check for mistakes, and transmit your form on time with great tax software.
If you need a little more time to get everything together and run your 990 series form past reviewers and approvers, it may be good to request an extension. Click here to find out more about meeting your June 15, 2021 Form 990 deadline.
Should You Extend Your Form 990 Deadline?
If you need more time to file Form 990 for your organization, you can apply for an automatic extension with Form 8868. Nonprofits can request an extension with Form 8868 once per year. This form extends 990 deadlines by up to 6 months, and is available for Form 990, 990-PF, and 990-EZ. Unfortunately, it does not cover Form 990-N.
To extend your deadline with Form 8868, you’ll need to file the extension request form by your Form 990 deadline. If your 990 series form is due June 15, 2021, be sure to file Form 8868 on or before June 15.
How to File Extension Form 8868
The whole point of filing Form 8868 is to give your organization more time, so, at ExpressTaxExempt, we’re making it as easy as possible. To send your extension request, select Form 8868 in your ExpressTaxExempt account and complete these simple steps:
Step 1: Enter your organization’s details. Name, EIN, ect…
Step 2: Choose the IRS 990 series deadline you need to extend
Step 3: Select your organization’s tax year. For today’s deadline, choose 2020.
Step 4: Review your return and fix any errors
Step 5: Transmit Form 8868 directly to the IRS
Avoid IRS Penalties
Missing your Form 990 deadline or filing late can result in expensive penalties for your organization. Here’s a quick outline of the penalties that go with Form 990:
The IRS penalizes organizations $20 a day for late forms. The maximum fine is $10,000 and it cannot exceed 5% of an organization’s gross receipts. If you do not file Form 990 for three consecutive years, the IRS can automatically revoke your tax-exempt status.
If you missed a previous Form 990 deadline, visit this blog to find out what to do next.
Complete Form 990 Easily
The IRS requires tax-exempt organizations to file Form 990 online. Working with an IRS-authorized e-file provider is the best way to meet your deadline and avoid IRS penalties.
Whether you extend your deadline or file now, ExpressTaxExempt is here to make 990 series forms easy. When you file Form 990, you’ll get access to internal error checks, instant notifications on your return’s status, and expert U.S.-based support.
ExpressTaxExempt offers form-based and interview-style filing methods. If you’re used to the format of Form 990 and you just want to fill out your return, form-based is perfect for you. If you’d rather answer a series of questions and let our tax software fill your form out for you, interview-style is the way to go.
When you select interview-styling, you also get access to a bulk upload feature that lets you attach all your contribution information in a few clicks. When it comes to Form 990 filing, we have the perfect solution for every nonprofit.