Tax-Exempt Organizations Subject To Annual Filing Deadline

Even tax-exempt organizations are required to file an annual tax return. This year, the filing deadline for many qualifying organizations is May 15th. Organizations that fail to comply with this deadline could face fines and interest payments, making it especially important for those who have questions about their tax-related obligations, to reach out to an experienced tax return preparation lawyer for help.

When is the Filing Deadline? 

Tax-exempt organizations, despite being tax-exempt, must still file a tax return every year. The deadline is usually the 15th day of the fifth month after the end of an organization’s accounting period. This means that charities and other tax-exempt organizations that operate on a calendar-year basis must file by May 15th. Returns that must be submitted include:

• Form 990-series, or annual information returns;
• Form 990-N, Electronic Notice, or e-Postcards for tax-exempt organizations that aren’t required to File Form 990;
• Form 990-T, or an Exempt Organization Business Income Tax Return; and
• Form 4720, or returns for certain excise taxes.

Unlike individual tax returns, which can be submitted via the mail service, many tax-exempt organizations must submit the aforementioned tax returns electronically. This applies to:

• Organizations that file forms from the 990-series;
• Private foundations filing Form 4720 for calendar year 2022; and
• Organizations that are eligible to file Form 990-N.

Fortunately, electronic submission allows the IRS to acknowledge receipt much more quickly and lowers processing times. This in turn, makes compliance with reporting requirements a lot simpler.

Avoiding Common Errors 

An organization that fails to submit a complete and accurate return can expect delays when it comes to processing. Some of the most common errors made by tax-exempt organizations include:

• Submitting an incomplete return;
• Submitting the wrong type of return for the organization; and
• Submitting a missing or incomplete schedule.

Organizations that make these kinds of errors can expect their returns to be rejected, which can cause headaches down the road. One of the best ways to avoid these mistakes is to work with an experienced attorney before submitting the return. Tax-exempt organizations that need more time to file can also request a six month extension by filling out Form 8868. These extensions often provide organizations with the extra time they need to submit an accurate return, thereby avoiding mistakes that would otherwise be made as a result of haste. It’s important to note, however, that in situations where an organization also owes a tax, an extension will not similarly apply to the payment deadline.

An Experienced Tax Return Preparation Lawyer 

Skilled CPA, and former FBI Special Agent, Florida and nationwide tax return preparation attorney Ronald Cutler, P.A. is well-versed in the IRS’ requirements for tax-exempt organizations. To learn more about these obligations or for assistance amending a rejected return, please call our office at 386-490-9949 or send us an online message. Initial consultations are conducted on a one-on-one basis and are offered free of charge.

Sources: 

irs.gov/newsroom/irs-reminds-tax-exempt-organizations-of-annual-may-filing-deadline

irs.gov/charities-non-profits/annual-exempt-organization-return-due-date