"If you don’t take some action, IRS fines and penalties will begin May 16"
(PRWEB) April 24, 2012
Although most nonprofit’s are tax exempt, it is absolutely mandatory for all nonprofits or charitable organizations to file 990 tax returns! CharityNet USA, one of the top nonprofit services providers in the US explains that, if a nonprofit does not file on time the organization could be slapped with hefty fines and additional charges accruing on a daily basis!
In the past, if a nonprofit had income of less than $25,000 per year, there was no need to file a 990 Tax Return. In 2007, the IRS rules changed and it became necessary to file each year, regardless of income. Further, failure to file for 3 years is an automatic dissolution of 501(c)(3) status and thus an organizations tax exempt status, resulting in even more IRS tax liability.
CharityNet USA explains the fines and penalties have changed as well for compliance at all levels in the nonprofit world. The IRS states "For several years, the http://www.irs.gov/newsroom/article/0,,id=240239,00.html [IRS __title__ IRS explains compliance ] has made extensive effort to inform organizations of the changes in the law through multiple outreach and educational avenues"
This year the stakes are even higher, IRS fines start at $20.00 per day and commence the day after nonprofit tax filing day, May 15, 2012, do not let a nonprofit organization open its doors on May 16 having not filed a 990 tax return with the IRS or the fines will begin, regardless of an organizations income.
There is an easy solution, the 990-N: For Nonprofits with gross receipts normally ≤ $25,000. Such an organization need not include itemized financials; however, a 990-N cannot be prepared for previous years. If the nonprofit organization missed filing a 990-N for a past year that organization must file a 990-EZ, regardless of revenue, even if there has been zero activity.
990-EZ: Gross receipts $25,000 -$500,000, and Total assets < $1.25 million. A spokesman for CharityNet USA, one of the leaders in the nonprofit market says “We recommend the 990-EZ for most nonprofits, since it is the tax return required for most grant filing eligibilities anyway”.
Why risk being fined and potentially losing 501(c)(3) status? Have a professional complete any nonprofit organizations taxes by the deadline and keep your books up to date all the time!
“CharityNet USA nonprofit tax professionals are here if an organization needs help preparing any nonprofit 990 tax return”, said Thomas R. Reich CharityNet USA’ Marketing Coordinator, “Don’t risk mistakes, call and schedule by May 1, 2012 to be assured of prompt on time filing.” He continues with a warning “If an organization can’t call by May 1st, an extension can be filed, but if a nonprofit with a 501c3 status does not take some action, IRS fines and penalties will begin May 16, there is simply no way around this.”
Don’t be caught outside the date, the IRS is serious business, and if a nonprofit organization possess a 501c3, that organization must file, there are no exceptions. Don’t risk losing 501(c)(3) status, 990-N is simple and inexpensive, take action now!