Calling all tax-exempt organizations! This week marks the August 16, 2021 Form 990 deadline for nonprofits whose tax year ended on March 31, 2021.
Form 990 protects transparency in the nonprofit sector, opens up your financial records to the public, and allows your organization to remain tax-exempt. As this deadline approaches, it’s important to begin preparing for filing Form 990.
If your organization has an August 16th deadline, here are our tips to stay IRS-compliant and penalty-free.
Make a Deadline Plan
If your Form 990 deadline is on August 16th, 2021, it’s time to get proactive and make a plan of action for filing. You can either complete your form and transmit your return to the IRS before midnight on August 16th, or you can file for an extension with Form 8868.
But before you begin filing, there is some important information you need to know:
Form 990 is due on the 15th day of the 5th month following the end of your organization’s tax year. Considering many organizations have different deadlines, it’s crucial that you are aware of your organization’s specific deadline. You can use our free Due Date Calculator to find your 990 deadline.
The next important step in filing your Form 990 is figuring out which form you need to file. There are quite a few 990 series forms and the IRS requires different forms based on your organization’s size, function, and gross receipts. If you are unsure about which form your organization should file, you can use our Form 990 Finder tool. It is completely free and extremely helpful.
Once you have figured out your IRS Form 990 filing requirements for 2021, you are ready to file. To begin filing Form 990, you should gather some necessary information. This includes:
Organization’s Identification Information
Employer Identification Number (EIN), organization name, address, and mission statement
Be ready to report all of your revenue, expenses, and assets
E-Filing Mandate for Form 990
If you are prepared and ready to file your Form 990, then you have come to the right place! ExpressTaxExempt will help you file your return with ease. In the past, organizations could meet their Form 990 deadline by paper filing. Now, following guidelines laid out in the 2019 Taxpayer’s First Act, the IRS requires tax-exempt organizations to e-file Form 990. So, working with an IRS-authorized e-file provider is a smart way to meet your deadline on time and avoid any IRS penalties.
When you file Form 990 with ExpressTaxExempt, the process is simple and your return will be processed quickly. ExpressTaxExempt works closely with the IRS to offer a safe, secure, and accurate filing experience. You will also receive instant notifications on your return’s filing status.
File for an Extension
If you feel your organization is not quite prepared to file Form 990, no worries! You can apply for a deadline extension using Form 8868. IRS Form 8868 is used by exempt organizations to apply for an automatic 6-month extension of time to file their 990 tax returns. The IRS requires no explanation for the extension on Form 8868.
You need to file Form 8868 by the due date of the original tax return for which you are requesting an extension. For instance, an extension on the filing date for Forms 990, 990-EZ, 990-PF must be filed by the 15th day of the 5th month after the organization’s fiscal tax year ends.
E-filing Form 8868 with ExpressTaxExempt is simple. Follow these 4 quick steps below to file your form:
If you miss your filing deadline for Form 990 and do not submit an extension, your organization will be subject to penalties from the IRS. Here’s a quick outline of the penalties your organization could incur:
The IRS penalizes organizations $20 a day for late forms. The maximum fine is $10,000 but 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.
Don’t let your organization fall victim to these penalties! File Form 990 or 8868 on time with ExpressTaxExempt.
ExpressTaxExempt is an IRS-authorized e-filing service that is used by thousands of non-profit organizations to file their returns. ExpressTaxExempt is proud to support Form 990, 990-PF, 990-EZ, 990-N, and extension Form 8868.
With a choice of form-based and interview-style filing, you can customize your experience for maximum ease and efficiency. You’ll receive access to internal error checks, instant notifications on your return’s status, and great U.S.-based support.
Don’t wait until the last minute to file! File Form 990 before August 16th, 2021 and meet your IRS deadline easily!