The form 990 due date is not determined with respect to when you apply for tax-exempt status. The IRS generally references the date you applied for an EIN. So, as an example, say an org was incorporated Oct 3, 2023 and applied for and received its EIN on October 20th. Assume further that the organization will use the calendar year as its accounting year. The organization's first 990 filing will be due May 15, 2024 to report on the short initial year which should be Oct 3 to Dec 31. The organization has 27 months from the date of incorporation (the IRS usually makes the calculation based on EIN issue date) to file its application for recognition of tax-exempt status, so the initial return would be marked "application pending." Returns still have to be filed even if status has not yet been applied for. I hope that answers your question.
@@NonprofitTaxHelp Thank you kindly for your response. I have no idea of the organization's incorporation date - it was years ago as far as I know. I assume they are incorporated in some form of charitable organization. I'll share your response and thanks again.
If you are a separate legal entity (nonprofit) the filing requirements are the same. Grants paid to you by the fiscal sponsor are reported as income on your Form 990 according to which 990 you are eligible to file.
Assuming that no extension was filed for the most recent missed due date, the organization will be in automatically revoked status. It the organization was small (less than $200,000 in gross receipts each year) it can re-apply for tax-exempt status using the streamlined method: www.irs.gov/charities-non-profits/charitable-organizations/automatic-revocation-how-to-have-your-tax-exempt-status-reinstated
You can call the IRS at 1-877-829-5500 to verify the exempt status of your organization. It will probably take a few weeks/months for your organization's name to be placed on the revoked list. You can search the list by EIN here: apps.irs.gov/app/eos/
What if your 1st year you made no money (zero) in 2020 and your tax person file extension for November 15, 2021 and then you missed that date? My tax person said i have to pay 20.00 a day from Nov 15, 2021 to the present. I would have to pay 3800.00. Is this true? Can I do the 990N now for 2020 on IRS website since its overdue? I had no idea how this all worked and my tax person didn't explain it to me. I thought I heard you say if you made zero money you wont have to pay penalties? Should I call the IRS?
bourgsusan, if there was zero income in 2020, which was the first year, and if it otherwise qualifies, the organization was eligible to submit a 990-N in 2021 for the 2020 tax year. There is no monetary penalty for submitting a 990-N late for one or two years. So, no need to go back and try to file the 2020 990-N. The IRS website is very limited in its capabilities and does not allow you to file 990-N's for earlier years. The latest you can submit a 990-N for the year ending Dec 31, 2020, is Dec 31, 2021. After that, their system rolls over to the next year for 2021 tax period filings. You could file a 2020 990-N using a service like ExpressTaxExempt, or any professional preparer like myself could do it for you. But as I wrote, it's not necessary. The fact that your tax person filed an extension has no impact on what you are/were required to file. In other words, just because he/she requested an extension for a 990-EZ, it doesn't mean the organization has to file a 990-EZ. As far as penalties are concerned, if the organization had average annual gross receipts of more than $50,000 and failed to file a 990-EZ, the maximum ($20 per day) penalty would have been $10,500 or 5% of the gross receipts for that year, whichever is LESS. So for an organization that had zero gross receipts, the late filing penalty would be zero. (Zero income X 5% = $0). No need to call the IRS.
Thank you for the very helpful information!
when you're first filing for a 501(c)(3) do you owe a 990 at that time, or for a partial year?
The form 990 due date is not determined with respect to when you apply for tax-exempt status. The IRS generally references the date you applied for an EIN. So, as an example, say an org was incorporated Oct 3, 2023 and applied for and received its EIN on October 20th. Assume further that the organization will use the calendar year as its accounting year. The organization's first 990 filing will be due May 15, 2024 to report on the short initial year which should be Oct 3 to Dec 31. The organization has 27 months from the date of incorporation (the IRS usually makes the calculation based on EIN issue date) to file its application for recognition of tax-exempt status, so the initial return would be marked "application pending." Returns still have to be filed even if status has not yet been applied for. I hope that answers your question.
@@NonprofitTaxHelp Thank you kindly for your response. I have no idea of the organization's incorporation date - it was years ago as far as I know. I assume they are incorporated in some form of charitable organization. I'll share your response and thanks again.
Hey what if you have a fiscal sponsor?
If you are a separate legal entity (nonprofit) the filing requirements are the same. Grants paid to you by the fiscal sponsor are reported as income on your Form 990 according to which 990 you are eligible to file.
What can be done if you have missed the due date, And this year is the third year?
Assuming that no extension was filed for the most recent missed due date, the organization will be in automatically revoked status. It the organization was small (less than $200,000 in gross receipts each year) it can re-apply for tax-exempt status using the streamlined method: www.irs.gov/charities-non-profits/charitable-organizations/automatic-revocation-how-to-have-your-tax-exempt-status-reinstated
You can call the IRS at 1-877-829-5500 to verify the exempt status of your organization.
It will probably take a few weeks/months for your organization's name to be placed on the revoked list. You can search the list by EIN here: apps.irs.gov/app/eos/
@@NonprofitTaxHelp Thank you so much!
What if your 1st year you made no money (zero) in 2020 and your tax person file extension for November 15, 2021 and then you missed that date? My tax person said i have to pay 20.00 a day from Nov 15, 2021 to the present. I would have to pay 3800.00. Is this true?
Can I do the 990N now for 2020 on IRS website since its overdue? I had no idea how this all worked and my tax person didn't explain it to me. I thought I heard you say if you made zero money you wont have to pay penalties? Should I call the IRS?
bourgsusan, if there was zero income in 2020, which was the first year, and if it otherwise qualifies, the organization was eligible to submit a 990-N in 2021 for the 2020 tax year. There is no monetary penalty for submitting a 990-N late for one or two years. So, no need to go back and try to file the 2020 990-N. The IRS website is very limited in its capabilities and does not allow you to file 990-N's for earlier years. The latest you can submit a 990-N for the year ending Dec 31, 2020, is Dec 31, 2021. After that, their system rolls over to the next year for 2021 tax period filings. You could file a 2020 990-N using a service like ExpressTaxExempt, or any professional preparer like myself could do it for you. But as I wrote, it's not necessary. The fact that your tax person filed an extension has no impact on what you are/were required to file. In other words, just because he/she requested an extension for a 990-EZ, it doesn't mean the organization has to file a 990-EZ. As far as penalties are concerned, if the organization had average annual gross receipts of more than $50,000 and failed to file a 990-EZ, the maximum ($20 per day) penalty would have been $10,500 or 5% of the gross receipts for that year, whichever is LESS. So for an organization that had zero gross receipts, the late filing penalty would be zero. (Zero income X 5% = $0). No need to call the IRS.