Form 990 is an annual tax return that all 501(c)(3) Tax Exempt charitable and non-profit organizations must submit to the IRS. It provides the IRS with information about the organization’s finances, activities, and governance. The IRS can use the information you provide on Form 990 to audit your organization. Also, donors and other stakeholders who want to learn more about your organization. So, it is important to ensure that the information is accurate and complete.
Types of Form 990.
The four different types of 990 form a Tax-Exempt Organization can be filed electronically including the following:
- Form 990-N is the electronic notice (e-Postcard) for small TEOs with gross receipts of $50,000 or less.
- Form 990-EZ: It is a condensed version of Form 990 for TEOs with gross receipts between $50,000 and $200,000.
- Form 990: This is the full version of Form 990 for TEOs with gross receipts of more than $200,000.
- Form 990-PF: This is for private foundations.
Filing an IRS non-profit 990 form is a necessary evil for most organizations. It’s a fact of life that must be done on time annually in order to maintain Tax Exempt status. But the process can be daunting, especially for financial officers who may need to become more familiar with the finer details.
At JAF CPA LLC, we have years of experience helping non-profits file their 990 forms accurately and on time. We can help you choose the right version of the form for your organization and walk you through the entire filing process.
When is the Form 990 filing deadline 2023?
Tax Exempt Organizations that file on a calendar year have until May 15, 2023, to file Form 990 or request an extension. This deadline applies to all TEOs, regardless of their size or type.
Can I extend the filing date for their required forms?
Organizations that are unable to file their required forms by the May 15 deadline can extend the filing date to November 15 by filing Form 8868.
However, it is important to note that Form 8868 must be submitted to the IRS by the May 15 deadline.
In other words, if an organization needs more time to file its Form 990, it can request an extension by filing Form 8868. However, the extension request must be submitted by the original filing deadline.
What are the penalties for a Tax-Exempt Organization that fails to file its return?
If a Tax-Exempt Organization fails to file its return by the due date, it may be subject to a penalty of $20 per day. The maximum penalty is $10,500.
It is important to note that, Tax Exempt Organizations not filing for three consecutive years will automatically lose their tax-exempt status.
For more information, please visit the IRS website to learn more.
Gathering all the necessary information is time-consuming for organizations required to file the long-form version of Form 990 it is advisable to employ the expertise of a professional in such cases.
Here are some additional tips for TEOs:
- Make sure you know which form you need to file.
- Start gathering your information early.
- Review the instructions carefully before you file.
- E-file your return if possible.
- Keep a copy of your return for your records.
By following these tips, you can ensure that you file your Tax-Exempt Organization return on time and avoid any penalties.
Abatement of Late Filing Penalties
If you are unable to file your Form 990 on time, you may be able to request abatement of the late filing penalty. To do this, you must file a written statement with the IRS explaining the reason for the late filing. The report must include supporting documentation and address the following items:
- The reason for the late filing.
- What prevented you from requesting an extension of time to file?
- How you were not neglectful or careless but exercised ordinary business care and prudence.
- What steps have you taken to prevent the same situation from occurring?
The IRS will review your request and decide whether to abate the penalty.
Need help in filing Form 990 or Form 8868?
We understand that filing your Form 990 can be a daunting task. That is why JAF CPA LLC is here to help. Our team of experienced accountants can help you gather all the necessary information, prepare your return, and file it with the IRS on time.
We also offer a variety of other services to help you stay compliant with federal and state regulations. These services include:
- Bookkeeping
- Tax planning/compliance
- Consulting
- CFO (Chief Financial Officer)
Call us today at +1 281-810-7461 or request a consultation online. We look forward to working with you to make a difference.
FAQs
Who is required to file IRS Form 990?
Tax-exempt organizations that have either:
1. Gross receipts of $200,000 or more, or
2. Total assets of $500,000 or more,
are required to file IRS Form 990. This includes organizations that are classified as 501(c)(3), such as charities, churches, and educational institutions.
what is a 990 form?
Form 990 is an annual information return that tax-exempt organizations are required to file with the Internal Revenue Service (IRS). It provides the IRS with information about the organization’s finances, activities, and governance. The information on Form 990 is also available to the public, so it can be used by donors, volunteers, and other stakeholders to learn more about the organization.
What is the difference between a 990 and a 990 T?
The main difference between Form 990 and Form 990-T is that Form 990 provides information about all of the organization’s activities, while Form 990-T only provides information about the organization’s UBTI.
