Organizations eligible for this temporary transitional relief should prepare to e-file their returns beginning in 2022 and beyond, when paper filing will be discontinued. The IRS may delay implementation of obligatory e-filing for up to two years for financially small organizations with total assets of less than $500,000 and annual revenue less than $200,000, all organizations filing unrelated business income tax returns, and any organization facing undue burdens from the change. A list of approved e-filing providers has not yet been released for tax year 2019, though we expect that the technical guidance on electronic filing options for exempt organizations will be updated as part of the implementation of the new law.
#Filr form 990 software#
Nonprofits that do not file the Form 990-N can prepare and submit their own returns electronically using IRS-approved tax preparation software, or by engaging a tax professional who uses software approved for electronic filing. Smaller organizations that file the Form 990-N have already been subject to mandatory e filing since 2007 the 990-N can only be filed directly by those organizations online through the IRS's website after registering a filing account. However, these early filers may obtain an ordinary six-month automatic extension of time using Form 8868 to push their filing deadline into 2021.
Those few organizations with fiscal years starting between July 2 and August 31, 2019, such as new organizations whose initial tax periods are established during this period, are slated to take up e-filing sooner, with their first electronic returns due in November or December 2020.
Because the law takes effect for years starting after July 2, 2019, the many nonprofits that just started a new fiscal year on Jwill also be required to e-file in 2021 (for the July 1, 2020–Jtax period) rather than in 2020 (for the July 1, 2019–Jtax period). The new requirements apply to calendar-year filers for returns covering tax year 2020 (due May 15, 2021) and to fiscal-year filers for returns covering tax years beginning on and after J(due the 15th day of the fifth month after the end of the tax period). Under the new law, mandatory e-filing will arrive for most tax-exempt nonprofit organizations in 2021 and for all tax-exempt nonprofits that file returns with the IRS by 2022. Gradual Implementation of Mandatory E-Filingīefore enactment of the Taxpayer First Act, only some tax-exempt nonprofit organizations with total assets of $10 million or more as well as private foundations and charitable trusts that filed 250 or more IRS returns annually, were required to e-file Forms 990 and 990-PF. Organizations exempted from filing information returns with the IRS, such as churches and their affiliates and governmental entities, are not affected by these technical changes. The new law also requires the IRS to publicly release data from these returns in machine readable format as soon as practicable, and to warn organizations that are delinquent in filing and at risk of losing their tax-exempt status before that status is automatically revoked. It also extends mandatory e-filing to the periodic contribution and expenditure reports (Form 8872) filed by Section 527 political organizations. 3151), signed into law on July 1, 2019, extends the requirement for nonprofits to electronically file IRS annual information returns (Forms 990, 990 PF, 990-EZ, and 990-T) to all tax-exempt organizations who must file returns.