The IRS has extended the filing deadline for tax-exempt organizations with January and February 2012 filing due dates until March 30, 2012. It is granting the extension because the e-file system that processes electronically filed returns of tax-exempt organizations will be off-line in January and February to implement changes for the 2011 tax year.
The extension also applies to organizations that have already obtained a three-month extension and now have an extended filing deadline of January 17 or February 15, 2012. The majority of tax-exempt organizations are unaffected by the extension because they operate on a calendar-year basis and have a May 15 filing deadline.
The extension applies to affected organizations that file Forms 990, Form 990-EZ, 990-PF or 1120-PF. Form 990-N filers are not affected.
No form needs to be filed to receive the March 30 extension. To avoid receiving a late filing penalty notice, a reasonable cause statement should be attached to the tax return. If organizations receive late filing penalty notices, they should contact the IRS to abate the penalties.
The IRS is encouraging affected to consider e-filing early–before the end of December 2011–or wait until March 2012 to file electronically. In addition, certain affected organizations normally required to file electronically have the option to file a paper return during January and February.
The IRS reminded organizations that an extension of the time to file is not an extension of time to pay any tax liability that may be due for the year.
Click here to view IRS Notice 2012-4, which provides further details.
MCB has over 60 years of experience working with not-for-profit organizations on their accounting, audit, tax and compliance needs. Contact Kathy Flaherty at 703.218.3600 or at firstname.lastname@example.org for more information or to schedule a meeting to discuss your not-for-profit compliance requirements.