Certain annual information and tax returns filed with the IRS by tax-exempt organizations operating on a calendar year basis are due on May 17, 2021.
The returns due are:
Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF, 990-BL)
Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42
of the Internal Revenue Code
Mandatory Electronic Filing
Organizations filing Form 990, 990-PF or 990-N for 2020 must file returns electronically.
Organizations filing Form 990-EZ for 2020 received transitional relief and may file electronically or in paper.
Extension of Time to File
Tax-exempt organizations needing additional time to file beyond the May 17 deadline can request an automatic extension by filing Form 8868, Application for Extension of Time To File an Exempt Organization Return.
Form 8868 is used by exempt organizations to request an automatic 3-month extension of time (6 months for a Form 990-T corporation) to file its return and also to apply for an additional (not automatic) 3-month extension if the original 3-month extension is not enough time.
Extending the time for filing a return does not extend the time for paying tax.
The extensions can be filed electronically.
Auto-revocation
Organizations that fail to file their Form 990 series for three consecutive years automatically lose their exempt status. This is referred to as "auto-revocation."
The IRS is experiencing delays in processing paper returns, so although organizations may file their 2020 Form 990-EZ in paper, they are encouraged to electronically file their Form 990-EZ to avoid auto-revocation. This is especially important for those that did not file their information returns for 2018 and 2019.
Small tax-exempt organizations may be eligible to file Form 990-N to satisfy their annual information return requirement. These organizations need only eight items of basic information to complete the submission, which must be electronically filed. While the Form 990-N due date cannot be extended, there is no monetary penalty for late submissions. Organizations that fail to file their required Form 990-N for 2018 and 2019, and file after May 17, 2021, are still auto-revoked.
What Can an Organization Do if They Are Auto-Revoked?
The IRS mails notices to organizations whose tax-exempt status has been automatically revoked as well as publishes a list. While the IRS can't legally undo an automatic revocation that was done correctly, there are procedures in place to assist organizations that believe they have been erroneously listed as auto-revoked. This includes situations where an organization has documentation proving that it met its filing requirement for one or more years during the three-consecutive-year period.
For example, if an organization receives a notice of automatic revocation or is listed as auto-revoked effective May 17, 2021, but has documentation of filing a paper Form 990‑EZ or Form 8868 for 2020 by that date, (such as an IRS receipt for a filed return), it can fax the IRS the documentation at 855-247‑6123 to resolve the issue.
The IRS has a series of pre-recorded online workshops to help exempt organizations comply with their filing requirements that are designed to assist officers, board members, and volunteers with the steps needed to maintain their tax-exempt status, including filing annual information returns. They offer an interactive walkthrough of the annual Form 990 filing process and other courses that board members and volunteers can take to learn about maintaining their charity's tax-exempt status. Links to videos as well as transcripts in PDF format on the IRS website can be accessed on the IRS StayExempt website here. Web-based mini courses can be found here.