If you are a board member for a small nonprofit, make sure they file their annual tax return (the Form 990 or 990-EZ) or extension by May 15 (for calendar year taxpayers). An extension can be granted for 6 months.

The Internal Revenue Service will impose a penalty of $20 per day for each day the return is late. The maximum penalty is $10,000, or 5% of the organization's gross receipts, whichever is less.

The penalty increases to $100 per day, up to a maximum of $50,000, for an organization whose gross receipts exceed $1,000,000.

For assistance in preparing a nonprofit’s tax return, please contact me today.