Nonprofits First
News & Press
Blog Home All Blogs

IRS Updates Filing Requirements for Exempt Organizations

Posted By Charlotte Gill, Wednesday, December 18, 2019

The Taxpayer First Act, enacted July 1, 2019, requires tax-exempt organizations to electronically file information returns and related forms. The new law affects tax-exempt organizations in tax years beginning after July 1, 2019.

 

The following IRS forms are included in the mandate:

• Form 990, Return of Organization Exempt from Income Tax.

• Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation.

• Form 8872, Political Organization Report of Contributions and Expenditures.

• Form 1065, U.S. Return of Partnership Income (if filed by a Section 501(d) apostolic organization).

 

Those who previously filed paper forms will receive a letter from the IRS informing them of the change. Filing deadlines vary by form type. The IRS will postpone the required e-filing of Form 990-EZ for one year, while optional e-filing continues to be available. Although Forms 990-T and 4720 will come under the e-filing requirement next year, the IRS will continue to accept these forms on paper pending conversion to electronic format.

Form 8872

The IRS will no longer accept paper Forms 8872 reporting on periods after 2019. Forms 8872 reporting information for periods starting on or after Jan. 2020, will be due electronically by Section 527 organizations. These include political parties, political action committees and campaign committees of candidates for federal, state or local office.

Among other requirements, most tax-exempt political organizations have a requirement to file semiannual, quarterly or monthly reports on Form 8872. To file electronically, the organization must have the username and password it received from the IRS after electronically filing its initial notice (Form 8871). Organizations can file electronically using the IRS website at IRS.gov/polorgs. To replace a username or password, please contact:

IRS

Attn: Request for 8872 Password

Mail Stop 6273,

Ogden, UT 84201 Fax (855) 214-7520

Form 990 & 990-PF E-filing

Under the legislation, most e-filings won’t be due before Dec. 15, 2020, from charities and other exempt organizations that generally file Form 990 or 990-PF by the 15th day of the 5th month after the tax year-end. In other words, Forms 990 and 990-PF with tax years ending July 31, 2020, and later MUST be filed electronically. Forms 990 and 990-PF filings for tax years ended on or before June 30, 2020, may still be on paper. In the case of a short tax year or certain other circumstances detailed in the 990 or 990-PF Instructions, the IRS will continue to accept paper filing as its systems are yet unable to receive these forms electronically. More information on software providers is available at https://www.irs.gov/e-file-providers/exempt-organizations-mef-providers.

Form 990-EZ Transition Relief

For small exempt organizations, the legislation specifically allowed a postponement (“transitional relief”). For tax years ending on or before July 31, 2020, the IRS will accept either paper or electronic filing of Form 990-EZ, Short Form Return of Organization Exempt from Income Tax. For tax years ending Aug. 31, 2020, and later, Forms 990-EZ must be filed electronically. Generally, Form 990-EZ is for organizations with annual gross receipts less than $200,000 and total assets at tax year-end less than $500,000.

Paper Forms 990-T & 4720

In 2020, the IRS will continue to accept paper forms. These include Form 990-T, Exempt Organization Business Income Tax Return, and Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code. The IRS plans to have these returns ready for e-filing in 2021 (reporting on tax year 2020).

Pre-existing E-file Rules

In effect, the legislation supersedes the pre-existing e-file regulation for large exempt organizations. Until tax years beginning after July 1, 2019, exempt organizations with total assets of $10 million or more at tax year-end that had filed 250 or more returns of any type during the calendar year were required to e-file Forms 990 and 990-PF. E-filing was also required of Form 8872 filers that had or expected more than $50,000 of contributions or expenditures in the calendar year. These prior rules will continue to apply to some e-filings made in 2020.

Form 1065 E-filing

For most Section 501(d) apostolic organizations which use Form 1065, the e-filing legislation won’t apply to returns due before Oct. 15, 2020. Generally, the Form 1065 deadline is the 15th day of the 3rd month after the tax year-end. Appropriate software is offered by the providers listed on the IRS 1065 MeF Providers web-site.

Taxpayer First Act

The Taxpayer First Act aims to expand and strengthen taxpayer rights and to reform the IRS into a more taxpayer friendly agency. The legislation requires the agency to develop a comprehensive customer service strategy, modernize its technology and enhance its cyber security. More information on the Taxpayer First Act is available at IRS.gov.

________________________________________

If you have a technical or procedural question about Exempt Organizations, visit the Charities and Nonprofits homepage on www.IRS.gov. 

If you have a specific question about exempt organizations, call EO Customer Account Services at 877-829-5500.

Tags:  Accounting  Charities  Finance  IRS  Nonprofit  Reporting  Taxes 

Share |
Permalink
 

Nonprofit Financial Management Network Provides Opportunities to Collaborate With Financial Peers

Posted By Charlotte Gill, Monday, November 25, 2019

Nonprofit Financial Management Network Provides Opportunities to Collaborate With Peers

 

In 2016, financial leaders at The Arc of Palm Beach County, Community Partners of South Florida, The Lord’s Place, Nonprofits First, and Palm Beach Habilitation Center came together to establish a resource for nonprofit financial managers to collaborate and learn from one another.

 

“The Nonprofit Financial Management Network (NFNM) has created an opportunity to bring our nonprofit financial leaders together to learn, share ideas, and network with their peers in Palm Beach County. Without a doubt, we are creating a valuable resource for our nonprofit community,” says Toby Douthwright, Chief Operating Officer at The Lord’s Place.

 

Opportunities to participate in the NFMN include quarterly trainings, roundtables, and networking events. At a recent training held at Community Partners of South Florida, Keefe and McCullough CPA’s and Trusted Advisors presented to 45 financial professionals on Cost Allocations for Nonprofits. In early November, the group gathered for networking at the West Palm Beach Brewery and Wine Vault. Among those gathered were representatives from Healthy Mothers, Healthy Babies Coalition of PBC, Hanley Foundation, Loggerhead Marinelife Center, First Republic Bank, Adopt A Family of the Palm Beaches, Community Partners of South Florida, The Lord’s Place, The Arc of Palm Beach County, 211 Palm Beach/Treasure Coast, Holyfield & Thomas, Palm Beach Habilitation, and Nonprofits First.

 

Gregory Demetriades, Chief Financial Officer of Community Partners of South Florida says, “we created the network to serve as a resource to the financial managers of the Palm Beach County nonprofit world, regardless of organizational focus or purpose.  We felt that, unlike other senior positions in nonprofit organizations, our profession lacked the recognition of the industry and cohesiveness of an organized support group. The group brings relevant and important issues to the table and engages the individuals that needed it the most – our nonprofit financial peers.”

 

For more information or questions regarding the Nonprofit Financial Management Network, contact Delferine Spooner at Dspooner@nonprofitsfirst.org or 561-214-7435.

Tags:  Charities  Finance  Financial Empowerment  Leadership  Membership  Network  Nonprofit  Nonprofit Finance 

Share |
Permalink
 
 


Association Management Software Powered by YourMembership  ::  Legal