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
. You should also consult your tax adviser to discuss your options.