The Internal Revenue Service (IRS) recently extended deadlines for a variety of tax payments and filings (collectively, “Tax Obligations”). The extension impacts taxpayers, including exempt organizations, which had Tax Obligations due on or after April 01, 2020 and before July 15, 2020 (the “Covered Period”).
Tax Obligations which were originally due during the Covered Period now have an automatic extended deadline of July 15, 2020. Taxpayers who had Tax Obligations due before the Covered Period but received a valid extension for a deadline within the Covered Period now also have an automatic additional extension through July 15, 2020.
The Tax Obligations impacted by the order include the IRS Form 990, the IRS Form 990-T, and the IRS Form 990-PF.
The extension will particularly impact taxpayers with tax years ending in November, December, or January as these taxpayers typically have IRS Form 990 filing deadlines in April, May, or June, respectively.
Additionally, the extension applies to the reporting of excess benefit transactions on the IRS Form 4720, which is normally required to be filed with the IRS by the 15th day of the 5th month after the close of the tax year.
No action is necessary to take advantage of the extension; the IRS has extended the deadlines automatically. Organizations needing an extension beyond July 15, 2020 can request the extension by submitting the applicable form. For exempt organizations, the form used to extend the annual return deadline is generally the IRS Form 8868.
January 16, 2023 | Faith-based nonprofit organizations should recognize whether they are obligated to follow the requirements under the Fair Labor Standards Act (“FLSA”).
December 13, 2022 | Faith-based nonprofits will likely face more lawsuits and government actions challenging religious freedom after Congress passed the Respect for Marriage Act (RMA) repealing the Defense of Marriage Act of 1996. The RMA impacts faith-based organizations in two specific situations. Both relate to interactions between the faith-based organizations’ work and the state and federal government. The threats to faith-based organizations remain despite language in the RMA purporting to protect religious freedom. Both supporters and skeptics of the RMA agree that the RMA’s religious freedom language has no “meaningful effect.” Below are key questions and “known unknowns” related to the RMA’s impact on faith-based nonprofits.
November 22, 2022 | At first glance, the voting requirements in a nonprofit’s bylaws may not seem an exciting topic. Most nonprofits have not seriously considered their bylaws, perhaps because they have inherited old bylaws, copied the bylaws of another company, or even originated their bylaws from a quick internet search! If any of these scenarios applies to your organization, your organizations’ bylaws may include director voting requirements not tailor-made to your preferences or the specific needs of your organization.