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Ray, Lawyer
Category: Legal
Satisfied Customers: 36397
Experience:  30 years in civil, probate, real estate, elder law
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We failed to file a 990 last three years cemetery due to an

Customer Question

We failed to file a 990 for the last three years for a cemetery due to an oversight after
changing Treasurers. What is the procedure to correct our mistake. Our income for
those years was less than $10,000 per year.
Submitted: 7 months ago.
Category: Legal
Expert:  Ray replied 7 months ago.

Hi and welcome to JA. Ray here to help you today.

You would submit the missing forms here for the last three years. This would allow you to catch up here.





I appreciate the chance to help you today.Just complete and send these in here .

Expert:  Ray replied 7 months ago.

Penalties for failure to file

If an organization fails to file a required return by the due date (including any extensions of time), it must pay a penalty of $20 a day for each day the return is late. The same penalty applies if the organization does not give all the information required on the return or does not give the correct information.

In general, the maximum penalty for any return is the lesser of $10,000 or 5 percent of the organization's gross receipts for the year. For an organization that has gross receipts of over $1 million for the year, the penalty is $100 a day up to a maximum of $50,000.

If the organization is subject to this penalty, the IRS may specify a date by which the return of correct information must be filed. If the return is not filed by that date, an individual within the organization who fails to comply may be charged a penalty of $10 a day. The maximum penalty on all individuals for failures with respect to a return shall not exceed $5,000.

Please note: Automatic revocation occurs when an exempt organization that is required to file an annual return (e.g., Form 990, 990-EZ or 990-PF) or submit an annual electronic notice (Form 990-N, or e-Postcard) does not do so for three consecutive years. Under the law, the organization automatically loses its federal tax exemption.

Penalties for failure to file may be abated if the organization has reasonable cause for the failure to file timely, completely, or accurately.

As you can see there are going to be penalties here calculated by IRS as set out above.

Expert:  Ray replied 7 months ago.

What happens if my Form 990 is filed late?

If an organization whose gross receipts are less than $1,000,000 for its tax year files its Form 990 after the due date (including any extensions), and the organization doesn't provide reasonable cause for filing late, 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 percent 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.

An organization that fails to file the required information return (Form 990, Form 990-EZ, or Form 990-PF) or e-Postcard (Form 990-N) for three consecutive tax years will automatically lose its tax-exempt status.

There is a risk that tax exempt status be lost, filing these and paying penalty will hopefully allow to retain status.

You may want to have tax preparer prepare these, calculate penalties and resolve this hoping to avoid revocation of tax exempt status.

Thanks again.

Expert:  Ray replied 7 months ago.

If you can positive rate it is always much appreciated, thanks again.

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