Nonprofit Form 990 Extension: Don’t Miss This Important IRS Deadline Relief Option
Many nonprofit organizations know they must file Form 990, Form 990-EZ, or Form 990-PF each year. What many organizations do not realize is that the IRS allows an automatic extension of time to file.
For calendar-year nonprofits, Form 990 filings are generally due May 15. However, organizations that need additional time can usually obtain an automatic 6-month extension by filing IRS Form 8868 before the original due date.
This extension can be extremely valuable for nonprofits that are still finalizing bookkeeping, gathering donor and grant information, reconciling accounts, or waiting for year-end financial statements.
Use the extra time to sharpen up your statements on Program Accomplishments
Most 990 and 990-EZ submissions that I review are lacking in one key area: they have failed to put the time into making full and complete explanations of their Program Accomplishments. This is the place to show how your actions match your mission statement, so donors and grantors can see that your mission AND actions match their values.
A rushed Form 990 often leads to mistakes, weak program descriptions, missing disclosures, or incomplete reporting. Since Form 990 filings are public documents reviewed by donors, grantors, foundations, journalists, and charity rating organizations, accuracy and presentation matter.
The extension applies to the filing deadline itself. It does not extend payment deadlines for any unrelated business income tax that may be due.
Form 990-N Postcard Return
One important exception is Form 990-N, also known as the e-Postcard.
The IRS does not allow extensions for Form 990-N filings.
Take Away
Nonprofits should remember that failing to file required Form 990-series returns for three consecutive years can result in automatic revocation of tax-exempt status.
Filing an extension is not a sign of failure. It can be a smart compliance decision that provides time to prepare a more accurate and more effective public-facing return.
If your nonprofit needs assistance with Form 990 compliance, Form 990-EZ preparation, or improving how your organization presents its mission and accomplishments on its public filings, consult a qualified CPA before the deadline.
This article is for general informational purposes only and should not be considered tax or legal advice. Every nonprofit organization’s situation is different. Contact GurelCPA for a free consultation regarding your nonprofit tax compliance and Form 990 filing needs.