990 late fee

[grandmabee]

I have a non profit who files the 990.  Extension was filed for a 06/30/20 ending and due date was May 17th.  Late fee says 20.00 a day but does that start back at the original due date since we missed the extension due date or will the penalty start from the original due date.  I think it goes back to the original due date. TIA

[ILLMAS]

Has anybody called and asked for it to be waived?

[jklcpa]

2 hours ago, grandmabee said:

I have a non profit who files the 990.  Extension was filed for a 06/30/20 ending and due date was May 17th.  Late fee says 20.00 a day but does that start back at the original due date since we missed the extension due date or will the penalty start from the original due date.  I think it goes back to the original due date. TIA

Due date would be the extended date if the extension was approved, so the penalty should be $20 for each month or part of month that it was filed late.

https://www.irs.gov/charities-non-profits/exempt-organizations-annual-reporting-requirements-filing-procedures-late-filing-of-annual-returns#:~:text=If an organization whose gross,day the return is late.

[DANRVAN]

8 hours ago, ILLMAS said:

Has anybody called and asked for it to be waived?

A phone call won't work for a 990.

You have to make a written request and show some reasonable cause such as change in directors.

If the organization is run by volunteers that helps your case; as well as pointing out the financial impact of the penalty on the limited resources that would otherwise be used for charitable purposes.

You also need to outline the measures that will be taken to prevent future late filings.

It is a slow process.