Deadline to File Form 990 for Nonprofits

Monday May 15, 2006

May 15th is the deadline for tax-exempt organizations to file their information and tax returns with the IRS. Tax-exempt organizations cover a wide range of public charities, private foundations, churches, and non-profit groups. Tax-exempt organizations must file Form 990 or 990EZ. Private foundations file Form 990-PF. If your organization is not ready to file, please request an extension using Form 8868. Why? If you don't request an extension, the IRS will assess a penalty of at least $20 for each day your Form 990 is late. The maximum late filing penalty is $50,000 or 5% of gross receipts. So filing an extension now can save your non-profit a lot of money.

The IRS has been encouraging tax professionals, church leaders, and non-profit executives to become more familiar with the rules for tax-exempt status and preparing Form 990 returns. The Service offers one-day workshops for small and mid-sized 501(c)(3) organizations. I attended one of these workshops last year and came away with more practical information about running a non-profit than I knew what to do with. The IRS also provides Tax Information for Charities and Non-Profits, publishes a newsletter about Exempt Organization tax issues, and provides tips for each stage of a charity, from inception to managing to dissolving a non-profit on its Life Cycle of a Public Charity page.

Here's some basic IRS forms and instructions you need to prepare returns for a non-profit:

Finally, I provide some helpful Tips for Preparing a Form 990-EZ, which is the form used by non-profits with gross receipts of less than $100,000 and total assets of less than $250,000 at the end of the tax year. You can also find helpful articles and tips for managing a public charity from Joanne Fritz, the About.com Guide to Nonprofit Charitable Orgs.