Tax Extensions for Nonprofit Organizations: The New Form 990 |
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If you're involved with the finances of a not-for-profit organization, listen up! For the 2008 tax year, every nonprofit's bugaboo–the IRS Form 990–has been expanded considerably. Strict new reporting requirements may mean that your organization has some extra work to do this year. "The new form, one of the few records that tax-exempt organizations must make public," wrote the San Diego Union-Tribune, "requires them for the first time to explain basic practices such as how they are governed, how they manage gifts and donations, and how they choose to pay top officials." So if you're responsible for an IRS Form 990 this year, consider filing a tax extension to ensure that you have plenty of time to comply with the new regulations. How Much More Complicated is the Form 990? TaxExtension.org recommends FileLater.com – the only online tax extension service that handles business tax extensions. The new nonprofit reporting regulations will require your careful consideration. And if you're like most nonprofits–busy, underfunded and understaffed–you'll need all the extra time you can get. The new 990 drills down well beyond the typical disclosures of payroll, contributions and overhead. This year, nonprofits must make clear their basic administrative configuration, their donation-handling processes, and their compensation plans for top officials. It's clear that the IRS is taking oversight much more seriously in this sector, to make sure that all tax-exempt organizations are obeying the rules. The new regulations will go into effect over time, based on revenue. If your organization earns over $1 million per year (or holds assets of $2.5 million or more), you have to complete the new form this year. For the 2009 tax year, organizations with $500,000 income/$1.25 million in assets must submit it, and in 2010 the threshold drops to $200,000/$500,000. Give your nonprofit the extra time to handle this new challenge. File a business tax extension online. |