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Mark Anderson
Mark Anderson, Tax Attorney
Category: Tax
Satisfied Customers: 541
Experience:  Tax attorney and accountant
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I have a non-profit 501c(3) corporation and haven't filed taxes

Customer Question

I have a non-profit 501c(3) corporation and haven't filed taxes before...I want to take care of filing and get my corporation back to normal. What do I need to do to make this happen?
Submitted: 1 year ago.
Category: Tax
Expert:  Mark Anderson replied 1 year ago.
You would need to file all the tax returns that are due.
Expert:  Mark Anderson replied 1 year ago.
You may also want to review if you need to file:https://www.irs.gov/instructions/i990/ch01.html
Customer: replied 1 year ago.
Where do I get all the forms for past years?
Expert:  Mark Anderson replied 1 year ago.
You can get the old forms at the IRS webpage.
Expert:  Mark Anderson replied 1 year ago.
Here is the link:https://www.irs.gov/uac/Current-Form-990-Series-Forms-and-Instructions
Customer: replied 1 year ago.
Will I pay major penalties? I don't have much money
Expert:  Mark Anderson replied 1 year ago.
Here are the prior year forms:https://apps.irs.gov/app/picklist/list/priorFormPublication.html
Expert:  Mark Anderson replied 1 year ago.
You probably need to figure out if you even needed to file.https://www.irs.gov/uac/Current-Form-990-Series-Forms-and-Instructions
Expert:  Mark Anderson replied 1 year ago.
Some organizations, such as churches and certain church-affiliated organizations, are not required to file annual returns or notices.https://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Required-Filings
Expert:  Mark Anderson replied 1 year ago.
Is your organization a church?
Customer: replied 1 year ago.
No...it's a performing arts group
Expert:  Mark Anderson replied 1 year ago.
Annual exempt organization return: Penalties for failure to fileIf 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.
Expert:  Mark Anderson replied 1 year ago.
Maybe it can be abated.
Customer: replied 1 year ago.
How can I make that happen?
Customer: replied 1 year ago.
It has been years that we haven't filed....I can't afford $20/day
Expert:  Mark Anderson replied 1 year ago.
You would probably need to write the IRS and ask for an abatement and explain that you had reasonable cause for failure to file. You might want to contact the tax payer advocate to get some help.
Expert:  Mark Anderson replied 1 year ago.
Here is the link:https://www.irs.gov/Advocate
Customer: replied 1 year ago.
What do you suggest I use as my abatement
Expert:  Mark Anderson replied 1 year ago.
Did you have a reason that you failed to file? If you did, then I would use the reason.
Customer: replied 1 year ago.
Basically I was not aware that we needed to file and my treasurer wasn't either.
Customer: replied 1 year ago.
I don't have any money and I am scared that I might go to jail over something I honestly wasn't aware of.
Expert:  Mark Anderson replied 1 year ago.
I would get some help from the tax payer advocate. I bet this happens with nonprofits all the time.
Expert:  Mark Anderson replied 1 year ago.
I would not worry about jail.
Expert:  Mark Anderson replied 1 year ago.
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