From online donations to individually-tailored policies and procedures there’s a lot for nonprofit professionals to stay on top of. One of the ways I like to serve my mission of promoting and maximizing charitable giving in Iowa is to help nonprofits leaders in the state understand the ever-changing regulatory landscape to be the most successful they can.
In December 2019 the Internal Revenue Service (IRS) announced that tax-exempt organizations are now required to electronically file certain documents. This comes after the passage of the Taxpayer First Act in July 2019, which affected tax-exempt organizations in tax years beginning after July 1, 2019. This is a change from the previous option where organizations had the option to mail in paper forms. Organizations that have previously filed paper forms should receive a notice from the IRS telling them of the change.
The following IRS forms should now be filed electronically:
• Form 990, Return of Organization Exempt from Income Tax
• Form 990-PF, Return of Private Foundation (or Section 4947(a)(1) Trust Treated as Private Foundation)
• Form 8872, Political Organization Report of Contributions and Expenditures
• Form 1065, U.S. Return of Partnership Income (if filed by a Section 501(d) apostolic organization)
I’ve written about Form 990 in-depth before. While nonprofits don’t generally file annual tax returns (hence the tax-exempt status) most nonprofits need to file an important annual information return (a version of Form 990). If you want to learn more, I recommend giving these posts a read:
- New Nonprofits: Form 990 While Waiting for Tax-Exempt Status
- When do Nonprofits Need to File Form 990
- Form 990 Variations: Which Annual Return Should your Nonprofit File?
- Nonprofit Policy Special: 10 for Form 990
Interested in other aspects of successful nonprofit operations and great governance? Confused about any other regulatory changes? Don’t hesitate to contact me for a consult at gordon@gordonfischerlawfirm.com and 515-371-6077.