Filing Obligations for Non-Profit Organizations

Filing Obligations for Non-Profit

Why did the nonprofit cross the road? To get to the IRS office, of course! Just because you’re a tax-exempt organization doesn’t mean you’re off the hook – the IRS will still be keeping an eye on you. Filing obligations are a critical aspect of maintaining your organization’s tax-exempt status, so it’s important to stay on top of them. In this article, we’ll answer some common questions about filing obligations for non-profit organizations, so you can rest assured that you’re doing everything you need to do to stay in good standing. So, let’s dive in and get your questions answered! 

What Types of Non-Profit Organizations Have Filing Obligations?

While being a nonprofit organization can qualify you for certain benefits, it doesn’t automatically exempt an organization from federal income tax for most organizations. If you want to be tax-exempt at the federal level, you’ll generally need to meet certain criteria, apply for recognition of exemption from the IRS, and receive a ruling or determination letter acknowledging your tax-exempt status. Even after your nonprofit receive its tax-exempt status, there are still some informational filing requirements that you need to follow to stay on the right side of the government. The filing requirements for your nonprofit can vary depending on a few different factors. Your organization’s status, type, size, and state(s) in which you operate can all play a role. If you’re running a non-profit organization that’s recognized as tax-exempt by the IRS, you’ll likely need to file a yearly 990-series form with them. An annual information return is required to be filed by every organization that is exempt from federal income tax under Internal Revenue Code section 501(a). However, there are certain exemptions.  

What Are the Annual Filing Requirements for Non-Profits?

Tax-exempt organizations come in all shapes and sizes, and it’s important to know which form to file based on your financial status. For organizations with gross receipts less than or equal to $50,000, filing form 990-N, also called the e-Postcard, is required. However, it is also important to note that, certain organizations are required to file different forms instead of form 990-N. If your organization has gross receipts less than $200,000 and total assets less than $500,000, you can file either form 990-EZ or form 990. However, if your organization has gross receipts more than or equal to $200,000 and total assets more than or equal to $500,000, you’ll need to file form 990. Private foundations, regardless of financial status, must file form 990-PF.  Knowing which form to file can be confusing, but our team of experienced CPAs is always here to help. 

The report not only helps the organization maintain its tax-exempt status, but it also gives the public information about what the organization is up to. This includes things like the programs they’re running and how they’re operating. It’s a way for the organization to be transparent with the public.

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What is the Deadline for Form 990?

It’s important to keep track of the due date for your Form 990, as failing to file on time can result in penalties and even jeopardize your nonprofit’s tax-exempt status. If your nonprofit has to file Form 990 with the IRS, it’s due on the 15th day of the 5th month after the end of your taxable year. So, for example, if you follow the calendar year, your Form 990 will be due on May 15th of the following year. If you want to find out when your tax-exempt organization’s annual returns are due based on your tax year, the IRS has a handy table that lists it all for you! 

What Are the State-Specific Filing Requirements for Non-Profits?

States have certain requirements for non-profit organizations as well. However, it’s essential to bear in mind that the regulations and compliance requirements for non-profit organizations can vary significantly from one jurisdiction to another. You can reach out to your state agency or our tax professionals for further guidance regarding your state’s filing requirements to ensure that your organization complies with all requirements. 

What Are the Consequences of Non-Compliance?

Failure to comply with the filing requirements can have serious consequences, such as the revocation of tax-exempt status, which could have a significant impact on the organization’s financial standing and reputation. Moreover, if an organization doesn’t file a necessary return by the due date (even if they have been granted an extension), they’ll be hit with a daily penalty of 20 dollars for each day it’s late. Not only that, but if an organization doesn’t provide all the necessary information or if the information given is incorrect, they’ll still be hit with the same penalty. Hence, make sure you stay on top of your organization’s filing requirements and get those returns in on time and with all the correct information! 

Get a Free Consultation from Manay CPA Professionals

Ensuring that your non-profit organization files its returns accurately and on time is essential to avoid penalties and maintain your tax-exempt status. Not only that, but it can also help you cultivate a positive reputation and maintain the trust of your stakeholders and donors. If you’re feeling uncertain about the filing process or want to make sure you’re doing everything right, don’t hesitate to call us at 404-900-1040 or schedule an appointment. Our team of experts is committed to helping you stay compliant and achieve your organization’s goals. Let’s work together to continue making a positive impact in your community! 

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Manay CPA is a reputable, full-service CPA firm based in Atlanta, Georgia. Founded in 2001, we provide comprehensive accounting and tax solutions to individuals and businesses across all 50 states.

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