What happens if a form 990 is not filed

A simple way to ensure that an exempt organization is filing a complete Form is to file that return electronically.

This is because an incomplete return will not be accepted electronically. If an exempt organization happens to receive an incomplete return notice from the IRS, the exempt organization should explicitly follow the directions in the letter promptly within 10 days of receiving the notice to avoid late filing penalties.

Late filing penalties for filing an incomplete return oftentimes can be abated by preparing and submitting a reasonable cause penalty abatement letter. Automatic revocation of tax-exempt status occurs when an exempt organization that is required to file an annual return e. In summary, exempt organizations that receive an incomplete return notice from the IRS should consider the following tips:.

There are reams, and reams, of IRS documents—we know, because we read them all the time—and U. Rather than trying the do-it-yourself approach, underestimating the time it takes to prepare for an IRS Form EZ filing, missing your deadline, and being hit with fines and other penalties, reach out to an approved tax-filer early, submit the information you need early, and wait for confirmation of your tax-exempt status.

But in all seriousness, this is a pretty lenient policy by the IRS, so take advantage of it. Missing the IRS form EZ deadline can be a frustrating experience when it means being hit with daily penalties and the potential loss of your tax-exempt status. Receive IRS acceptance notification within 24 hours. You misremembered the date. Someone on your team dropped the ball. Your dog chose a new chew toy.

May 15th if your organization is following the Calendar Tax Year. The 15th day of the 5th month after the last month that concludes your fiscal tax year.

Which form to file? Information on electronic filing. What happens if our nonprofit fails to file? The IRS publishes the list of organizations whose tax-exempt status was automatically revoked because of failure to file a required Form , EZ, PF or Form N e-Postcard for three consecutive years. Use Form to request an automatic 6-month extension of time to file. The N due date cannot be extended, but there is no penalty for submitting it late. Frequently Asked Questions about the automatic revocation explain what taxes will be owed and what forms to file if your nonprofit loses its tax-exemption.

Video presentations by the IRS about maintaining tax-exempt status " Stay Exempt " include an overview on the Form Read about unrelated business income that may trigger the requirement to file the Form T. Boards and Governance. Financial Management.