Latest news with #Form990-N
Forbes
01-05-2025
- Business
- Forbes
IRS Filing Deadline Fast Approaching For Many Tax-Exempt Organizations
Charitable organizations may have a May 15 filing deadline. Tax season isn't over just yet. Tax-exempt organizations with a calendar year-end (December 31) must file a return or request an extension by May 15, 2025. The annual filing due date for the Form 990-series (Forms 990, 990-EZ and 990-PF, Form 990-N (the e-postcard), Form 990-T and Form 4720 are normally by the 15th day of the 5th month after the end of the accounting year. For an organization with a December 31 year-end, that's May 15. Other organizations may need to do a little math. Tax-exempt organizations that need extra time to file can request a six-month automatic extension by filing Form 8868. As with individuals, extending the time to file doesn't extend the time to pay if any tax is due. Many forms must be filed electronically, including the 990 series and the e-postcard. The IRS will send back returns filed on paper that should have been e-filed, and reject electronically filed returns that are materially incomplete or use the wrong form. If you have questions about how (and which form) to file, review the instructions or check with your tax professional. The annual filing requirements apply to most tax-exempt organizations, even if you don't have significant activity. Some exceptions apply—you can check the list of those here. Small tax-exempt organizations that qualify may file Form 990-N instead of Form 990 or Form 990-EZ. Those organizations can file Form 990-N if their annual gross receipts are normally $50,000 or less. Gross receipts mean the total amounts the organization received from all sources during its annual accounting period, without regard for costs or expenses. Some organizations cannot file Form 990-N even if their gross receipts are $50,000 or less. Those include private foundations, supporting organizations, political organizations (section 527), and a few others. You can find a longer list of those here. To file your Form 990-N, you must create an account (if you haven't already) and file using the IRS web page. The IRS requires that you file using a computer, specifically advising, "Do not use a smartphone or tablet to file your Form 990-N." The IRS has created a user guide for those who need a little guidance. And, importantly, again there are no paper forms. (It's worth noting that on May 4, 2025, the Form 990-N web page will be unavailable from 1 - 7 a.m. ET while the IRS makes updates.) Form 990-N is very easy to complete—there's no math! You'll need your EIN, tax year, and contact information. You'll also need the name and address of a principal officer and a website address, if any. Then, confirm that the organization's annual gross receipts are $50,000 or less and submit. 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. Additionally, tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations file Form 990-EZ. Not all organizations qualify to file Form 990-EZ. For example, Form 990-EZ can't be used by a private foundation required to file Form 990-PF, and Form 990 must be used to file a group return, not Form 990-EZ. Form 990 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, unless it meets an exemption. If an organizatio is exempt from tax and hasn't applied for recognition of exemption or whose application for recognition of exemption is pending, it must file Form 990. Sponsoring organizations of donor advised funds, organizations that operate a hospital facility, organizations recognized by the IRS as section 501(c)(29) nonprofit health insurance issuers, and certain controlling organizations defined in section 512(b)(13) must file Form 990 rather than Form 990-EZ regardless of the amount of gross receipts and total assets. Auto-Revocation It's important to file timely. Organizations that fail to file required Forms 990, 990-EZ, or 990-N for three consecutive years will automatically lose their tax-exempt status. Revocation of the organization's tax-exempt status will happen on the filing due date of the third consecutively-missed year. If you lose your tax-exempt status, the organization is liable for all income, excise, or other taxes and penalties that may have been owed when your status was revoked. Your organization will also be responsible for any future tax liabilities that accrue due to your organization's loss of exemption. You can search online if you can't remember whether you've filed (and you don't have a confirmation in your files). Information on the Form 990 series filed with the IRS, except for certain contributor information on Schedule B (Form 990), is required to be made available to the public. That means that social security numbers (SSNs) shouldn't be included on this form. By law, with limited exceptions, neither the organization nor the IRS may remove that information before making the form publicly available—so be sure to review the forms carefully before submitting. If you need more information, the IRS has created a web page for tax-exempt organizations with additional resources—or check with your tax professional.
Newsweek
25-04-2025
- Business
- Newsweek
IRS Issues Guidance For Those Facing May 15 Tax Deadline
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. As the May 15 filing deadline approaches, the Internal Revenue Service (IRS) is urging tax-exempt organizations to review filing requirements and avoid common mistakes that could result in penalties or loss of tax-exempt status. Why It Matters Failure to comply with filing requirements can lead to significant consequences, including automatic revocation of tax-exempt status. The IRS noted that three consecutive years of missed filings will result in such a revocation. Organizations can mitigate these risks by utilizing authorized e-file providers and ensuring that all schedules and necessary documents are included. The May 15 deadline serves as a critical checkpoint for nonprofits that operate on a calendar-year schedule, a majority of tax-exempt groups. Those who miss the filing deadline are subject to late penalties, and the IRS advises that submitting Form 8868 for a six-month extension can help organizations buy time to complete their returns properly. Signage for the Internal Revenue Service (IRS) is seen outside IRS headquarters in Washington, DC, on April 15, 2025. Signage for the Internal Revenue Service (IRS) is seen outside IRS headquarters in Washington, DC, on April 15, 2025. JIM WATSON/AFP via Getty Images What To Know The IRS emphasized that the filing due date for exempt organizations is the 15th day of the fifth month after the end of the organization's accounting period. For most groups, that translates to a May 15 deadline. Forms due include the Form 990 series (990, 990-EZ, 990-PF), Form 990-N for smaller organizations, Form 990-T for unrelated business income, and Form 4720 for certain excise taxes. E-filing requirements have expanded, meaning that even smaller organizations that file a Form 990-N must submit their returns electronically through the IRS website. Larger organizations must use an IRS-authorized e-file provider to submit Forms 990, 990-EZ, 990-PF, and 990-T for the 2023 tax year. The IRS also reminds filers that extending the filing date through Form 8868 does not delay any payments that may be due. Organizations with business income tax liabilities should make those payments on time to avoid accruing penalties and interest. Common filing errors include submitting incomplete forms, failing to attach required schedules, and using the wrong forms altogether. In such cases, the IRS will reject the return, and organizations must resubmit promptly to avoid being classified as not filing at all. What People Are Saying Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "One of the positive developments through the IRS in recent years is how the process for nonprofits having to file has become more online-friendly and easier to complete. Whether you file with a e-postcard or have to use one of the lengthier forms, May 15th is the deadline to make sure you meet. If you know your organization is going to fail to submit by that date, you need to make plans to file for an extension." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "All tax-exempt organizations must still file their returns by the 15th day of the 5th month after the close of their tax year. But beyond that, there could be major changes on the horizon." "The current administration is closely examining how some organizations operate and there's growing concern that those involved in DEI initiatives could face scrutiny. While nothing has officially happened yet, we've already seen moves to challenge the tax-exempt status of private institutions like Harvard. This could signal a broader effort to reassess how certain organizations maintain their exempt status moving forward." Michael Ryan, a finance expert and the founder of told Newsweek: "Everything has to be filed electronically now, which IMO is actually a blessing in disguise. Electronic filing is so much faster, and you get that little confirmation right away instead of wondering if your forms are sitting in some mail room somewhere." What Happens Next The IRS filing deadline for tax-exempt organizations is May 15. The IRS also offers a free virtual workshop for nonprofits at "If you're feeling a little overwhelmed by all this and honestly, who isn't? The IRS actually has some decent free training resources," Ryan said. "I checked it out last year and it was surprisingly helpful."
