Exempt Organization Rules & Penalties

The IRS requires multiple yearly filings. We’ve organized them here based on due dates. The first section – Section One – includes all forms due on or before the 15th day of the 5th month after the close of the tax year. Section Two features forms due on or before the 15th day of the 3rd month after the close of the tax year. Lastly, there’s a helpful worksheet provided by the IRS, Form 990-W.

 

IRS Forms – Section One

All of these forms are due on or before the 15th day of the 5th month after the close of the tax year.

Form 990

Title:
Return of Organization Exempt from Income Tax

Who Must File:
All 501(a) organizations except:
   – Organizations w/GR < $25,000
   – Organizations filing Form 990-EZ
   – Churches
   – Private foundations (file 990-PF)
   – Subordinates in a group return

Penalties:
   – $20 per day, not to exceed the lesser of $10,000 or 5% of the gross receipts for the year, imposed on the organization.
   – $10 per day, up to $5,000, imposed upon responsible persons if the return is not filed after written demand by the IRS.

Form #990 Schedule A

Title:
Organization Exempt Under 501(c)3

Who Must File:
All 501(c)(3) organizations required to file Form 990 or Form 990-EZ

Penalties:
   – $20 per day, not to exceed the lesser of $10,000 or 5% of the gross receipts for the year, imposed on the organization.
   – $10 per day, up to $5,000, imposed upon responsible persons if the return is not filed after written demand by the IRS.

Form 990-EZ

Title: Short Form Return of Organization Exempt from Income Tax

Who Must File:
Simplified form for use by organizations with gross receipts normally less than $100,000 and assets under $250,000.

Penalties:
   – $20 per day, not to exceed the lesser of $10,000 or 5% of the gross receipts for the year, imposed on the organization.
   – $10 per day, up to $5,000, imposed upon responsible persons if the return is not filed after written demand by the IRS.

Form 990-T

Title: Exempt Organization Business Income Tax Return

Who Must File:
All 501(c) organizations with gross income of $1,000 or more from an unrelated business activity, or with a liability for the proxy tax on lobbying and and political expenditures.

Penalties
   – Late filing: 5% of the tax due per month, up to 25%
   F – Late payment: 0.5% of the tax due per month, up to 25%

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IRS Forms – Section Two

On or before the 15th day of the 3rd month after the close of the tax year

Form 1120-POL

Title: US Income Tax Return for Certain Political Organizations

Who Must File:
501(c) organizations with at least $100 of political expenditures and at least $100 of net investment income.

Penalties:
   – Late filing: 5% of the tax due per month, up to 25%
   – Late payment: 0.5% of the tax due per month, up to 25%

Form 4720

Title: Return of Certain Excise Taxes Under Chapters 41 and 42

Who Must File:
Public charities with excess lobbying expenditures and/or political expenditures; Disqualified Persons and Organization Managers liable for Chapter 41 or 42 taxes.

Penalties:
   – Late filing: 5% of the tax due per month, up to 25%
   – Late payment: 0.5% of the tax due per month, up to 25%

Worksheet

Worksheet Form 990-W

This helpful worksheet is provided by the IRS to determine the amount and timing of estimated tax deposits. It should be completed if projected tax liability is $500 or more.
Note: This is a worksheet only, do not submit it to the IRS!

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