The Filing Deadline For Tax-Exempt Organizations

As you probably know, the tax filing deadline for most individuals was in April. Many tax-exempt organizations, including those that operate on a calendar-year basis, however, had until May 16th to file their returns and certain annual information with the IRS. Failing to comply with these deadlines can result in significant penalties and fees, making it especially important for taxpayers to have a thorough understanding of their filing obligations.

Required Annual Information

Despite being tax-exempt, many organizations, including some charities, are still required to file both tax returns and annual information returns, such as:

• The Form 990-series, including Forms 990, 990-EZ, and 990-PF, which include standard annual information returns;
• Form 990-N, or an Electronic Notice for Tax-Exempt Organizations Not Required to File Form 990;
• Form 990-T, which is an Exempt Organization Business Income Tax Return; and
• Form 4720, or a Return of Certain Excise Taxes Under Chapters 41 and 42.

For help filling out one or more of these forms, or to learn more about information returns in general, consider reaching out to an experienced tax attorney.

Mandatory Electronic Filing

Most taxpayers are encouraged to file their returns electronically, as doing so provides fast acknowledgment of receipt by the IRS. It can also reduce processing time, making it easier to comply with reporting requirements and making it more likely that a person will receive his or her refund sooner. Certain tax-exempt organizations, however, are actually required to file their returns electronically. This includes organizations that were required to file one or more of the following forms for calendar year 2021:

• Form 990;
• Form 990-EZ;
• Form 990-PF;
• Form 990-T; or
• Form 990-N.

Private foundations that are required to file Form 4720 for last year must also file their forms electronically. Fortunately, tax-exempt organizations, like charities, can file the necessary forms electronically by using an IRS Authorized e-File provider.

Requesting an Extension

Organizations that need more time to file beyond the May 16th deadline can ask for a six month automatic extension by completing and submitting Form 8868. It’s important to note, however, that extending the time for filing a return doesn’t necessarily mean that they will have more time to pay any taxes that they may owe. These will still need to be paid by the deadline to avoid the accrual of fines and penalties. Those who are unable to pay the amount owed may be able to negotiate a payment plan with the IRS that can significantly reduce these penalties.

Reach Out to an Experienced Florida Tax Attorney for Help

If you have questions about your own tax-exempt organization’s tax obligations, please call experienced Florida tax attorney, CPA, and former FBI Special Agent Ronald Cutler, P.A. to learn more about important filing deadlines. You can set up a free, one-on-one consultation by calling 386-490-9949 today. A member of our legal team can also be reached via online message.

Sourcs:

irs.gov/newsroom/may-16-is-filing-deadline-for-many-tax-exempt-organizations

irs.gov/pub/irs-pdf/f8868.pdf