Form 990 Reminder: Every 501(c) must file a 990 every year
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 2021.
This is a reminder that all nonprofits have an obligation to submit various reports to the IRS and to the state each year.
Below is an explanation of these key tax filings and their deadlines:
- 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, 2021. If your fiscal year ends on June 30, the due date is November 15.
- If your total revenues were $50,000 or less, you may file 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 2020 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 for determining $50,000 threshold: Some organizations may still qualify for Form 990-N even though they exceed $50,000 in total revenues in the immediately preceding tax year.
These organizations include the following:
- in existence for one year or less and received $75,000 or less during its first taxable year;
- in existence between one and three years and averaged $60,000 or less in gross receipts during its first two tax years; or
- at least three years old and averaged $50,000 or less in gross receipts for the immediately preceding three tax years (including the year for which calculations are being made).
NEW! Electronic filing: For tax years beginning July 1, 2019, organizations that file Form 990 and Form 990-PF must file electronically. For smaller organizations that file Form 990-EZ, the EZ version of the annual report must be filed electronically for tax years ending July 31, 2021. Click here for more details.
- State Filing – Incorporated Status – All organizations must renew their incorporated status each year. In Wisconsin, DFI annual reports are due at the end of the quarter in which the organization was incorporated.
See here for more information.
- 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 on the DFI website. The renewal is due by July 31 each year. In addition, the charitable organization must submit an annual 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.
If you have any questions,
Scholz Nonprofit Law is here for you. Please let us know how we can help by emailing Jessica.
Note: The guidance provided by Scholz Nonprofit Law is intended as general guidance and providing such advice does not establish a lawyer-client relationship.