What Happens If a Nonprofit Files Form 990 Late?

Nonprofits need to file Form 990. It’s best to file on time to avoid some high fees and penalties. Here’s what you need to know if Form 990 is filed late, based on your gross receipts.

If your gross receipts are less than $1,208,500 for the tax year and you file Form 990 after the due date. Depending on when your tax year ends you will file four and a half months after that. For example, if your tax year ends December 31, 2023 you will need to file by April 15, 2024. You can file an extension until November 15 if your filing was due April 15. 

If you do not provide a reasonable cause for filing late, the IRS will impose a penalty of $20 per day for each day the return is late. The maximum penalty is $12,000, or 5 percent of your gross receipts, whichever is less. Note: The penalty increases to $120 per day, up to a maximum of $60,000, for an organization whose gross receipts exceed $1,208,500.

If three consecutive tax years are missed and you never filed, this means you will automatically lose your tax-exempt status, so make sure you get caught up if you fall behind.

If you need help getting your books in order, get a free estimate today at www.harquinbookkeeping.com/estimate.