Extended Deadline for Form 990 for US Small Businesses

For US small businesses operating as nonprofits or tax-exempt organizations, staying compliant with IRS reporting requirements is critical. One key form is Form 990, which provides the IRS and the public with an overview of your organization’s finances, activities, and governance. Knowing the deadlines and requirements for filing, including extended deadlines, ensures your nonprofit avoids penalties, maintains its tax-exempt status, and builds trust with donors.

1. What is Form 990 and Who Must File?

Form 990 is the annual information return that tax-exempt organizations submit to the IRS. Depending on the size and type of your nonprofit, you may need to file one of these forms:

• Form 990: For larger tax-exempt organizations reporting income, expenses, assets, liabilities, and activities.

• Form 990-EZ: A shorter version for smaller nonprofits with gross receipts less than $200,000 and total assets under $500,000.

• Form 990-PF: Specifically for private foundations; includes detailed reporting of endowments, investments, and grant-making activities.

• Form 990-N (e-Postcard): For small nonprofits with gross receipts normally $50,000 or less; submitted electronically with minimal reporting requirements.

Who Must File:

• Most tax-exempt organizations with annual gross receipts exceeding $50,000.

• Private foundations (Form 990-PF) regardless of income.

• Organizations exempt under sections 501(c)(3), 501(c)(4), 501(c)(6), and other relevant subsections of the Internal Revenue Code.

Exemptions:

• Certain seasonal, household, or agricultural employers may be exempt.

• Filing requirements vary if your organization meets small-exempt thresholds (Form 990-N) or files Form 944 annually.

2. Understanding the Extended Deadline for 2025

Standard Due Dates:

• Form 990 is generally due on the 15th day of the 5th month after the end of your fiscal year.

  • Example: A nonprofit with a calendar year ending December 31, 2024, would have the original due date of May 15, 2025.

  • A nonprofit with a fiscal year ending June 30, 2025, would have a due date of November 15, 2025.

Extended Deadlines:

• Organizations can request a 6-month automatic extension by filing Form 8868 by the original due date.

• For example:

  • Calendar year organizations filing Form 8868 by May 15, 2025, can extend the filing deadline to November 15, 2025.

  • Nonprofits with a June 30 fiscal year ending can extend their deadline by 6 months (check exact date with IRS adjustments).

• Important: The extended deadline only applies if Form 8868 is filed on time.

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3. Penalties and Risks for Late Filing

• Late Filing Penalty:

  • Small organizations: $20/day, up to $12,000 annually.

  • Larger organizations: $100–$120/day, up to $60,000 annually.

• Automatic Revocation:

  • Non-filing for three consecutive years leads to automatic loss of tax-exempt status, requiring reapplication and fees.

• Other Risks:

  • IRS audits, increased scrutiny, and loss of donor trust.

  • Public disclosure forms (Form 990 is publicly available) may show late or incomplete filings, affecting fundraising and credibility.

4. Tips for Filing Form 990 Accurately

• Gather Financial Records: Include income, grants, donations, expenses, and asset reports.
• Use IRS Guidance: Carefully review the instructions for the correct form type and schedules.
• Check Data Accuracy: Ensure numeric entries are correct; double-check totals and calculations.
• Include Governance Information: Report board members, officers, and compliance measures.
• File Electronically When Possible: Most organizations must e-file via IRS-authorized software.
• Keep Documentation: Retain copies of Form 8868, Form 990, bank statements, and confirmations of filing or extensions.

5. How Counto Accounting Can Help

Navigating Form 990 requirements can be complex for US small businesses and nonprofit organizations. Counto Accounting Services offers:

• Guidance on choosing the correct Form 990 type for your organization.

• Assistance with calculating income, expenses, and payroll tax liabilities relevant to your nonprofit.

• Step-by-step filing support to ensure on-time submission.

• Audit preparation and review to prevent errors that could trigger penalties.

• Secure document management and record-keeping best practices.

With Counto, small businesses and nonprofits can focus on their mission while staying fully compliant with IRS requirements.

Summary

US small businesses operating as tax-exempt organizations must stay vigilant with Form 990 filings. Understanding the standard and extended deadlines, penalties for late filing, and accurate reporting requirements is critical. By filing timely and correctly—potentially with the help of Counto Accounting Services—your nonprofit can maintain tax-exempt status, avoid penalties, and foster transparency with donors and stakeholders.

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