For as long as I can remember, nonprofits have been able to obtain a 3-month automatic extension for Form 990 filings simply by filing IRS Form 8868 before the initial due date. The Form 990 filing due date is four months and fifteen days after the organization’s fiscal year-end (e.g., May 15 for calendar fiscal years, and November 15 for fiscal years ending June 30). For an additional three-month extension, nonprofits have had to make a second filing – this time to ask permission for such additional extension and to demonstrate “reasonable cause”. Further, since the penalties for late Form 990 filings can be quite onerous (measured on a per-day late basis), it was generally best to get the Form 990 filed by the initial due date or no later than the available automatic 3-month extension.
Under new rules to take effect starting with tax years that begin after December 31, 2015, the original extension will now be for 6 months automatically. Calendar year filers for 2016 who file a timely extension will automatically have until November 15 , 2016 to complete their 990.
This will be a welcome relief to many groups – and probably to the IRS as well.
An Alexandria Chamber of Commerce Nonprofit & Association Leadership Academy event, presented by Aronson LLC
Marketing isn’t just for the commercial community. An effective sales and marketing strategy is critical to achieving your funding goals and boosting your public profile. Whether you are an experienced leader or an aspiring groundbreaker in the nonprofit and association community, we have a session for you:
RSVP today to reserve your spot, and don’t forget to mark your calendars for our next session on November 4th where our experts will explore new funding strategies.
A draft form and instructions for the 2013 Federal Form 990 have been issued by the IRS. There are very minimal changes from the previous year’s form and instructions. There is some clarification in the instructions for reporting short period returns and accounting method changes that are very helpful. A link to the draft form and instructions is here:
Join Maryland Nonprofits and Aronson LLC Partner Rob Eby on February 21st for an informative seminar that will answer many of the most commonly asked questions regarding nonprofit accounting and operations:
This interactive discussion will address each of these questions and many more. Click HERE to register today and reserve your spot!