Today, May 15th is an important tax date for nonprofits whose fiscal year ends June 30th or December 31st. If the organization’s fiscal year ends June 30th, today is the last day to file the federal tax form.
If the tax return is filed late, the IRS imposes late fees based on the organization’s gross receipts ($20 day per day for organization’s whose gross receipts are less than $1 million and $100 per day for organization’s whose gross receipts are more than $1 million). Failure to file Form 990 for three consecutive years will result in automatic loss of exemption.
If the organization’s fiscal year ends December 31st, the federal tax form is due today. If the tax form is not ready, the organization should request an extension with the IRS. This can be completed by submitting Form 8868 – Application for Automatic Extension of Time to File An Exempt Organization Return. The IRS now grants an automatic six (6) month extension but the form is still required to be filed.
For organizations that have a fiscal year which ends June 30th, September 30th and December 31st, today is also an important date if the organization is registered to solicit in states that follow the IRS deadlines. Extensions may be requested with the states for organizations with a fiscal year end September 30th or December 31st. For organizations with a fiscal year end of June 30th, most states will expire, with no further extension, today. Prepare and submit the application(s) as soon as possible to avoid accruing late fees.
Ellis Carter is a nonprofit lawyer with Caritas Law Group, PC. To contact Ellis, call 602-456-0071 or email us at firstname.lastname@example.org.