May 12, 2022
Your organization’s annual tax return may be due this Monday, May 16th!
This is a reminder that your tax-exempt nonprofit organization may be required to file its annual tax return by this Monday, May 16th. Tax Form 990, 990-EZ, or 990-PF filers must do so by the 15th day of the 5th month after the end of the organization’s accounting period. If your organization’s accounting period coincides with the calendar year it ends on December 31st, and that means this tax return is due on May 15th. Since that date falls on a Sunday this year, the due date is Monday, May 16th.
Failure to file your Form 990, 990-EZ, or 990-PF on time could result in significant financial penalties that accrue each day the return is late. Failure to file for three consecutive years results in the automatic revocation of an organization’s tax-exempt status.
Between the years 2015 and 2020, data from the IRS indicates that annually an average of 551 organizations in Iowa have their tax-exempt status automatically revoked.
Most small organizations with annual gross receipts normally under or equal to $50,000 per year are permitted to file Form 990-N to satisfy their annual reporting requirement. There is currently no financial penalty for filing this form late; however, automatic revocation occurs if the organization fails to file for three consecutive years.
The IRS receives more than 95,000 applications for tax-exempt status each year. Is your organization’s application for tax-exempt status still pending? If so, you may still be required to file your tax return. Please see the IRS website for more details on Tax Law Compliance.
For more details, including how to apply for an extension, visit the IRS webpage that addresses the May 16 filing deadline.
As always, the LAWINRC is happy to provide you with any additional information. Please contact us at law-nonprofit@uiowa.edu or 319-335-9765.
