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RESOURCES FOR NONPROFITS
Monthly Open Office
This live, monthly teleconference is designed to share the tools and tips for running a successful nonprofit. Sign-up below.
Charitable Solicitation Registration
42 states require some form of registration if your organization is fundraising. We’ll do it for you.
Form 990 Tax Reporting
Nonprofits are required to file Form 990 annually. Failure to file for 3 consecutive years will result in automatic revocation of tax exempt status!
Start with Open Office
Our interactive teleconference series, Open Office is held every month. On these calls, our experts and special guests will deep dive into the subjects you need to know to run a successful nonprofit. We’ll cover fundraising, compliance, tax-reporting, building boards and attracting volunteers, just to name a few. Best of all, these calls are FREE. They fill-up fast, register below.
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Federal & State Tax Compliance
REQUIRED ANNUAL TAX REPORTING
In general, nonprofits are required to file annual tax returns.
Failure to file for 3 consecutive years will result in an AUTOMATIC REVOCATION of exempt status.
Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, also known as the e-Postcard, unless they choose to file a complete Form 990 or Form 990-EZ instead.
If an organization has gross receipts less than $200,000 and total assets at the end of the year less than $500,000, it can file Form 990-EZ, instead of Form 990. Gross receipts are the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses.
Form 990 (not 990-EZ or 990-N) must be filed by an organization exempt from income tax under section 501(a) if it has either gross receipts greater than or equal to $200,000 or total assets greater than or equal to $500,000 at the end of the tax year (some exceptions apply).
Form 990-PF is an annual information return that must be filed by exempt private foundations, taxable private foundations, organizations that agree to private foundation status and whose applications for exempt status are pending.
Frequently Asked Questions
What is the due date for 990 informational tax returns?
Form 990 informational tax returns are due on the 15th day of the fifth month after the end of the accounting period. For most organizations, the due date is May 15th (except when the 15th falls on a Saturday or Sunday, the due date is the Monday following the 15th).
Are there penalties for late or non-filing?
In most cases, yes. There is no late filing penalty for late filing of the 990-N postcard. However, failure to file for 3 consecutive years will result in an automatic revocation of exempt status. If an organization whose gross receipts are less than $1,000,000 for its tax year and file after the due date (including extensions), the IRS will impose a penalty of $20 per day for each day the return is late, up to a maximum of $10,000.
What if my organization's gross receipts exceed $1,000,000?
The penalty for late filing of Form 990 increases to $100 per day, up to a maximum of $50,000.
Can an organization request an abatement of penalties for late filing?
The regulations provide that a request for abatement of penalties based on reasonable cause must be made in the form of a written statement, containing a declaration by the appropriate person that the statement is made under penalties of perjury, setting forth all the facts alleged as reasonable cause.
What are examples of reasonable cause?
Examples of reasonable cause include an explanation of what circumstances prevented the organization from requesting an extension of time to file its return, how the organization was not neglectful or careless, but exercised ordinary business care and prudence; and what steps have been taken to prevent the same situation from occurring in the future. Whether an organization qualifies for the reasonable cause exception to the penalty will be determined on a case-by-case basis taking into account all relevant facts and circumstances.
My organization is receiving notices from the IRS. Can you help?
Yes. If your organization is receiving notices or has not timely filed returns, contact us immediately. Our licensed tax professionals can manage your case, prepare the returns, draft a response and negotiate, on your organization’s behalf, with the IRS.