This quarterly newsletter provides recent updates and education information important to Arizona STOs.

Due Date Reminders

December 31, 2014 – Audit or review and agreed-upon procedures reports are due to ADOR for FY 2014.

February 15, 2015 – Form 990 or 990-EZ due date for June 30, 2014 returns properly extended by November 17, 2014.
April 15, 2015 – Last day tax credit year 2014 contributions can be collected from donors.

Form 990 Late Filing Abatement


The deadline for timely filing or extending the federal information return for June 30, 2014 fiscal-year ends has passed (November 17th). However, if your organization has missed this deadline, do not fear; there are several penalty abatement options available. 

If your organization is a small organization that is only required to file the Form 990-N (e-Postcard) (organizations with average gross receipts of $50,000 or less in the preceding 3 tax years), there is no extension available for filing the e-Postcard. If you've filed the e-Postcard late, the good news is there is no penalty assessment for late filing the e-Postcard. However, if the e-Postcard isn't filed for three consecutive years, the organization will automatically lose its tax-exempt status. So if you've missed one year, you will want to file all later returns timely.

Organizations that are required to file Form 990 or 990-EZ that do not file the return or submit an extension by the filing due date are subject to a penalty of $20 for each day the failure continues, with a maximum penalty of the lesser of $10,000 or 50% of gross receipts for the year (for organizations with gross receipts under $1 million). Despite these stiff penalties, there are four types of options for relief: (1) reasonable cause; (2) statutory exemptions; (3) administrative waivers; and (4) correction of service error. 

To read more about the penalty relief options available, you can read the full Journal of Accountancy article here. You should also consult your tax adviser to discuss your options.

Changes in Responsible Parties

Although Form 8822-B (new starting January 1, 2014) may come to mind if your organization has changed its address, you must also file the form if the organization has a change in a responsible party. This may be more of a common occurrence for smaller, volunteer-based nonprofits. Exempt organizations must check the box on the form that identifies the organization as exempt. The updated form and instructions can be found here

#GivingTuesday Continues to Grow

Early estimates for #GivingTuesday on December 2, 2014 show an increase of roughly 62% in donor contributions from 2013. Total giving is expected to exceed $50 million on this global day for giving back. The social reach skyrocketed this year as well, with nearly 700,000 tweets referencing the day. If your organization wants to take part in 2015's #GivingTuesday, mark your calendars for December 1, 2015.
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