For nonprofit organizations, filing Form 990 is a critical annual responsibility. This information return, required by the IRS, provides transparency about your organization’s finances, governance, and activities. Missing the filing deadline can have serious consequences, including penalties and even the loss of tax-exempt status. In this post, we’ll explain when Form 990 is due, why timely compliance is essential, and what options are available if your organization needs more time to file.
When Is Form 990 Due?
The due date for Form 990 depends on your organization’s accounting period:
- Calendar Year Filers: If your nonprofit’s tax year ends on December 31, Form 990 is due by May 15 of the following year.
- Fiscal Year Filers: If your organization uses a fiscal year, the return is due by the 15th day of the fifth month after the end of your accounting period. For example, if your fiscal year ends June 30, the due date is November 15.
If the due date falls on a Saturday, Sunday, or legal holiday, the deadline is extended to the next business day.
Why Is Timely Filing So Important?
1. Avoiding Penalties
Failing to file Form 990 on time can result in significant penalties. For organizations with gross receipts under $1,000,000, the penalty is $20 per day, up to the lesser of $10,000 or 5% of gross receipts. For organizations with gross receipts over $1,000,000, the penalty increases to $100 per day, up to a maximum of $50,000 per return[4].
2. Preventing Automatic Revocation of Tax-Exempt Status
If your organization fails to file a required Form 990 (or 990-EZ or 990-N) for three consecutive years, your tax-exempt status is automatically revoked by law, effective as of the due date of the third missed return[1].
3. Maintaining Public Trust and Transparency
Form 990 is a public document. Donors, grantmakers, and the public use it to evaluate your organization’s financial health and governance. Timely filing demonstrates accountability and transparency.
What If You Need More Time? File Form 8868
You can request an automatic six-month extension using Form 8868:
- Deadline: Submit by the original Form 990 due date.
- No Explanation Needed: No justification or signature required.
- Electronic Filing Only.
- Important Note: This extends the filing only, not the payment of taxes like those reported on Form 990-T. Payments are due by the original date to avoid interest and penalties.
What If You Miss the Deadline?
If you miss the extended deadline, your organization may be subject to penalties and, after three consecutive years of non-filing, automatic revocation of tax-exempt status. If you have a reasonable cause for late filing, you should provide an explanation with your return. The IRS may abate penalties if you can show that the failure was due to reasonable cause and not willful neglect.
Key Takeaways:
- Know your due date: It’s the 15th day of the fifth month after your tax year ends.
- File on time: Avoid penalties and the risk of losing your tax-exempt status.
- Request an extension if needed: Use Form 8868 for an automatic six-month extension.
- Stay compliant: Timely and accurate filing supports your organization’s reputation and ability to fulfill its mission.
If you need support with Form 990 or compliance planning, Inter CPA LLC is here to help. We specialize in supporting mission-driven organizations with transparent and timely tax and financial reporting.
References:
- Instructions for Form 990 (2024)
- Publication 557, Tax-Exempt Status for Your Organization
- 26 U.S. Code IRC §6033. Returns by exempt organizations
