IRS Emphasizes Upcoming Deadline for Tax-Exempt Organizations

The Internal Revenue Service (IRS) has issued a reminder to thousands of tax-exempt organizations about the upcoming May 15, 2023, filing deadline.

Typically, tax-exempt organizations are required to file specific returns by the 15th day of the 5th month following the end of their accounting period. Consequently, organizations operating on a calendar-year (CY) basis are expected to submit their returns by May 15, 2023.

The returns due include:

Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF)
Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code

The IRS has made it mandatory for organizations to file electronically. This measure aims to expedite acknowledgment of receipt and reduce processing time, thereby making it easier for organizations to comply with reporting requirements. As per this directive:

Organizations filing Form 990, 990-EZ, 990-PF or 990-T for CY2022 must file electronically.
Private foundations filing a Form 4720 for CY 2022 must do so electronically.
Charities and other tax-exempt organizations can submit these forms electronically via an IRS Authorized e-File Provider.
Organizations eligible to submit Form 990-N are required to do so electronically and can use the Form 990-N (e-Postcard) on IRS.gov.

Small business owners who operate tax-exempt organizations should note these requirements to ensure compliance and avoid potential fines or loss of tax-exempt status. The IRS also urged organizations to submit complete and accurate returns, as missing or incomplete schedules can lead to the rejection of the return.

Tax-exempt organizations that need more time to file beyond the May 15 deadline can request a six-month automatic extension by filing Form 8868, Application for Extension of Time to File an Exempt Organization Return. It’s important to note, though, that extending the time for filing a return does not extend the time for paying any tax due. The IRS encourages organizations requesting an extension to electronically file Form 8868.

To assist organizations in complying with their filing requirements, the IRS offers a series of pre-recorded online workshops. These workshops aim to guide officers, board members, and volunteers through the steps they need to maintain their tax-exempt status, including filing annual information returns.

In summary, the IRS’s reminder serves as an essential checkpoint for small businesses operating as tax-exempt organizations. Ensuring accurate and timely filing can help these organizations maintain their tax-exempt status and continue to contribute to their respective causes effectively.

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