Form 990 Late Filing Penalty

Form 990 Late Filing Penalty

Form 990 Late Filing PenaltyYou or your accountant forgot to file the required extension forms and now you have received a bill for $5,000 (or more) for the Form 990 late filing penalty.  What can you do?

If this is your first late filing, you may be in luck.  The IRS has a program known as First Time Abatement (FTA), which is a type of one-time penalty removal for a first-time penalty and based on the taxpayers compliance history.

So, if you have not been late with filing the 990 in the past three years, are up to date on all other (payroll) filings, then odds are the penalty will be abated under FTA.

If filing late is more of a regular occurrence with your organization, then you will have to argue that you had “reasonable cause” for the late filing.  Basically the case needs to be made that the cause of the late filing was NOT willful neglect. We have had some success in assisting clients in getting such penalties abated. Please contact us if you need help in this area.