Deadline for Filing Form 1099 is January 31.

A reminder of reporting obligations of nonprofits

Dear Scholz Nonprofit Law clients, current and past, and friends in the community:

Thank you for the opportunity to work with you. We greatly appreciate the work you do in the community and the trust you place in us to assist you. We look forward to being able to serve you in 2019.

All nonprofits have an obligation to submit various reports to the IRS and to the state each year. To the best of our knowledge, the filing deadlines are not changing, despite the government shutdown. Below is an explanation of these key tax filings and their deadlines:

1) Form 1099 to Scholz Nonprofit Law and Other Contractors – You may be required to issue Forms 1099-MISC to independent contractors that your organization paid for services or rent in 2018. Forms 1099-MISC for 2018, along with Form 1096, must be submitted to the IRS by JANUARY 31, 2019.

The circumstances in which your organization is required to issue a Form 1099-MISC include the following:

  • Payments to individuals or partnerships totaling $600 or more for services or rent in 2019. Note: employees of your organization should receive a Form W-2 by January 31st. Also, this requirement applies only to payments to persons who receive payments individually, through a sole proprietorship, or through a partnership (including an LLC taxed as partnership). You do not have to issue a 1099 to corporations or independent contractors that receive payment through a corporation; and
  • any payments over $600 made to law firms, regardless of whether the firm is a corporate entity. This means that any payments that you made to Scholz Nonprofit Law LLC must be reported on a Form 1099-MISC if the payments totaled over $600 in 2018. Attached is the Form W-9, which has information about Scholz Nonprofit Law’s employer identification number. Please note, to open the W-9, use the password “snl.” Let us know if you have any questions about amounts paid to our firm. As a reminder, our address is 612 W. Main Street, Suite 301, Madison, WI 53703.

Unfortunately, you cannot download the 1099 forms.  You can get them by ordering online (to be sent by U.S. Mail) from the IRS, by calling 1-800-TAX FORM (1-800-829-3676(although they may not arrive in time for the deadline), or by producing them through a tax software program or through a service provided by an accountant.

2) Form 990 – All tax-exempt organizations, including 501(c)(3), 501(c)(4) and 501(c)(6) organizations, must file some variation of Form 990 with the IRS. As a reminder, if your organization fails to file Form 990 for three consecutive years, your tax-exempt status will be revoked and your organization will have to reapply for tax-exempt status.

If your organization’s fiscal year is the calendar year, your organization is required to file some version of the Form 990 by May 15, 2019. If your fiscal year ends on June 30, the due date is November 15.

If your revenues were less than $50,000, you may file the Form 990-N by May 15th (or 4 months and 15 days after the end of your fiscal year). Form 990-N, available here, is quick, easy, and requires no financial information, but it is essential for preserving tax-exempt status.
If gross receipts for 2018 are more than $50K but less than $200K (and gross assets are <$500K), your organization may file the Form 990-EZ.
If revenues are over $200K, you must file the full Form 990.
All private foundations must file the Form 990-PF.
Note: because of the government shutdown, the release of current forms may be delayed and the 990-N portal may not be available at this time.

3) State Filing – Incorporated Status – All organizations must renew their incorporated status periodically. In Wisconsin, DFI annual reports are due at the end of the quarter in which the organization was incorporated.
See here for more information.

4) State Filing – Charitable Organization that solicits donations – In Wisconsin, organizations that solicit contributions of more than $25,000 are required to register. After registration, the charitable organization credential must be renewed annually through Form 308. The renewal is due by July 31 each year. In addition, the charitable organization must submit a financial report within 12 months of the organization’s fiscal year-end.
See here for more information.

Thank you for the work you do and for the privilege of helping you.
Best wishes for a great 2019!

The Scholz Nonprofit Law team:

Melissa, Jessica, Melanie and Sarah

Disclaimer: This message is provided as a courtesy and is not a commitment on our part to provide you service or to take any responsibility for your obligation to meet the deadlines described above. You are responsible for compliance.