Many nonprofit organizations are feeling the heat in the days leading up to the May 15th filing deadline for certain state and federal filings.  Over the next few days we will be reviewing various compliance items that all nonprofit organizations should keep in mind when closing out their books for 2014.  Today, we are discussing the Form 990/990-PF Return.

Form 990/990-PF Return

For nonprofit organizations operating on a calendar year end, the applicable Form 990 Return must be filed on or before May 15th unless a proper extension is filed.  For nonprofit organizations operating on a fiscal year end, the applicable Form 990 Return must be filed on or before the fifteenth day of the fifth month following the nonprofit organization's fiscal year-end.  There are significant penalties for failure to timely file the applicable Form 990 Return.  Also, failure to file the applicable Form 990 Return for three consecutive years will result in the automatic revocation of your nonprofit organization's tax-exempt status.

There are several different types of Form 990 Returns, and the return required of your nonprofit organization will depend on its tax classification and its annual gross receipts and total assets.  To determine which Form 990 Return your nonprofit organization is required to file, click here to view a helpful breakdown from the IRS of who should file a Form 990 Return.

The Form 990/990-PF Return can be complex, and the IRS and certain state agencies have been more attentive to compliance issues, many of which must be disclosed on the Form 990/990-PF Return.  For these reasons, it is imperative that every nonprofit organization have an accountant experienced in the tax rules applicable to nonprofits.

Check back tomorrow for a discussion on state solicitation of funds registration filings.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.