When Are Taxes Due for Non-Profits? Key Filing Dates

Non-profit organizations in the United States generally enjoy exemption from federal income tax, a status that supports their charitable, educational, religious, or scientific missions. This exemption, however, does not eliminate all tax-related responsibilities. These organizations are subject to federal tax filing requirements with the Internal Revenue Service (IRS) to maintain their tax-exempt status and ensure transparency. Understanding these obligations, particularly the various filing deadlines, is important for non-profit entities to remain compliant.

Understanding Annual Information Returns

Tax-exempt organizations must file annual information returns with the IRS, detailing their financial activities and operations. The specific form depends on the organization’s financial activity and structure. These forms inform the IRS about the organization’s adherence to its tax-exempt purpose and ensure public accountability.

For smaller organizations with gross receipts normally $50,000 or less, Form 990-N, also known as the e-Postcard, is used. This electronic notice requires basic information such as the organization’s Employer Identification Number (EIN), legal name, address, and confirmation of gross receipts. It is a mandatory annual filing to maintain tax-exempt status.

Organizations with gross receipts under $200,000 and total assets less than $500,000 at the end of their tax year often file Form 990-EZ, a shorter version of Form 990. This form requires detailed financial information, including revenues, expenses, assets, liabilities, and a summary of program service accomplishments. Certain organizations, such as private foundations or those operating hospital facilities, are not eligible to file Form 990-EZ regardless of their financial size.

Larger organizations, those with gross receipts of $200,000 or more or total assets of $500,000 or more, must file Form 990. This form provides a detailed overview of the organization’s activities, governance, financial information, and compensation paid to key personnel. It includes various schedules that report specific financial data or activities, such as contributions received or lobbying efforts. Form 990 is a public document, offering transparency into the organization’s operations.

Private foundations, regardless of their financial size, must file Form 990-PF. This form is similar to Form 990 but includes additional information specific to private foundations, such as details on investment income, grant distributions, and compliance with rules designed to prevent self-dealing. Form 990-PF also helps ensure that private foundations are operating in a manner consistent with their tax-exempt purpose.

Key Filing Deadlines and Extensions

The primary due date for filing most annual information returns, including Form 990, Form 990-EZ, and Form 990-PF, is the 15th day of the 5th month following the end of the organization’s tax year. For example, a calendar tax year organization (ending December 31st) has a filing deadline of May 15th of the following year. A fiscal year organization ending June 30th would file by November 15th. Form 990-N shares this deadline.

If a filing deadline falls on a weekend or legal holiday, the due date shifts to the next business day. Organizations needing additional time to file can request a six-month extension by submitting Form 8868, Application for Extension of Time To File an Exempt Organization Return. This form must be filed on or before the original due date. While Form 8868 grants an extension of time to file, it does not extend the time to pay any tax due. Forms 990 series are generally information returns, and typically no tax payment is associated with their filing.

Unrelated Business Income Tax Deadlines

Tax-exempt organizations may also be subject to Unrelated Business Income Tax (UBIT). This tax applies to income from a trade or business regularly carried on and not substantially related to the organization’s exempt purpose. The UBIT rules aim to ensure fair competition between tax-exempt organizations and for-profit businesses. If an exempt organization generates $1,000 or more in gross income from such unrelated business activities, it is generally required to file Form 990-T, Exempt Organization Business Income Tax Return.

The filing deadline for Form 990-T varies by legal structure. For organizations structured as corporations, Form 990-T is due on the 15th day of the 4th month following the end of their tax year (e.g., April 15th for a calendar-year corporate non-profit). If structured as a trust, Form 990-T is due on the 15th day of the 5th month after the end of its tax year (e.g., May 15th for a calendar-year trust).

Form 990-T often involves a tax payment, as UBIT is levied at corporate or trust income tax rates. The payment deadline for any UBIT owed coincides with the filing deadline for Form 990-T. Organizations can request an extension to file Form 990-T using Form 8868. This extension applies only to filing the return and does not extend the time to pay any tax due. Estimated tax payments for UBIT may also be required if the organization expects to owe $500 or more.

Consequences of Non-Compliance

Failing to meet filing requirements for annual information returns or Unrelated Business Income Tax can lead to significant repercussions for non-profit organizations. The IRS imposes monetary penalties for late filing of Forms 990, 990-EZ, and 990-PF. For organizations with gross receipts below certain thresholds, the penalty can be $20 per day, up to $12,000 or 5% of gross receipts. For larger organizations, the penalty can reach $120 per day, up to $60,000. Incomplete or inaccurate returns may also result in penalties if not corrected promptly.

For Form 990-T, failure to file on time can result in a penalty of 5% of the unpaid tax for each month late, up to 25% of the unpaid tax. There are also penalties for late tax payments, typically 0.5% of the unpaid tax for each month, up to 25%.

A severe consequence of persistent non-compliance is the automatic revocation of an organization’s tax-exempt status. If an organization fails to file its required Form 990-series returns or notices for three consecutive years, its tax-exempt status is revoked by law. This revocation occurs regardless of the organization’s intent or the amount of its gross receipts. Once revoked, the organization is no longer exempt from federal income tax and may be required to file corporate income tax returns (e.g., Form 1120) and pay applicable taxes.

Reinstatement of tax-exempt status after automatic revocation is possible but requires a formal application process, which can be complex and may involve user fees. The process often depends on the type of return the organization was required to file and how much time has passed since the revocation. Organizations may need to demonstrate reasonable cause for their failure to file and submit all delinquent returns. If reinstatement is not granted retroactively, the organization is considered taxable for the period its status was revoked, potentially impacting donor deductions.