The Internal Revenue Service said Thursday that a limited number of tax-exempt organizations won’t be able to electronically file their income tax returns until the middle of March due to technology upgrades.
The affected forms are
The IRS advised tax-exempt entities that need to file in this timeframe to follow these instructions:
Organizations subject to
If an affected organization doesn’t submit an extension in a timely way, or if the extended due date falls within the period from Jan. 15, 2024, to March 15, 2024, and the organization doesn’t e-file its Form 990-T on time, it should include with its late e-filed Form 990-T a request that any penalties for late filing not be imposed due to reasonable cause. The reasonable cause request should mention that e‑filing wasn’t available as of the due date of the return.
Organizations filing a Form 1120-POL that’s due from Jan. 15, 2024, to March 15, 2024 (including returns on extension) can file on paper. An organization that wants to e-file a return with an original due date during that time period can ask for an automatic six-month extension of time to file Form 1120-POL by submitting
The IRS has experienced delays in processing paper tax returns, and it’s ironic in some ways that the IRS is forced to ask for groups to file their tax returns on paper, especially political tax-exempt organizations during an election year. Earlier this month, National Taxpayer Advocate Erin Collins pointed out in her
The e-file delay won’t affect the ability of government entities and Indian tribal governments that aren’t subject to unrelated business income tax to timely file Form 990-T to make an
In addition, under the law, an entity can’t receive the elective payment amount before the original due date of the return. Filing before the original due date for the return won’t shorten the time for payment. While government entities and Indian tribal governments that aren’t subject to UBIT aren’t subject to the electronic filing mandate, the IRS is encouraging all taxpayers to e-file. The
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