CNC Form 990 & Compliance Calendar 3 — Questions and Answers
Question 1: A nonprofit with a fiscal year ending September 30 has an original Form 990 due date of:
- January 15
- February 15 (Correct answer)
- March 15
- April 15
Correct answer: February 15
Form 990 is due the 15th day of the 5th month after fiscal year end; five months after September 30 is February 15.
Question 2: What is the maximum automatic extension period available for Form 990 using Form 8868?
- 3 months
- 6 months (Correct answer)
- 9 months
- 12 months
Correct answer: 6 months
Form 8868 grants an automatic 6-month extension to file Form 990, with no need to show reasonable cause.
Question 3: For a large organization with gross receipts over $1 million, the daily IRS penalty for late Form 990 filing is:
- $20 per day
- $50 per day
- $100 per day (Correct answer)
- $200 per day
Correct answer: $100 per day
Large organizations (gross receipts exceeding approximately $1 million) face a $100-per-day late filing penalty, compared to $20 per day for smaller organizations.
Question 4: Form 990-N (e-Postcard) is available to organizations with gross receipts that are normally:
- Under $25,000
- Under $50,000 (Correct answer)
- Under $100,000
- Under $200,000
Correct answer: Under $50,000
The Form 990-N e-Postcard is available to organizations whose gross receipts are normally $50,000 or less per year.
Question 5: An organization loses its tax-exempt status automatically if it fails to file a required annual return for how many consecutive years?
- 1 year
- 2 years
- 3 years (Correct answer)
- 5 years
Correct answer: 3 years
Under the Pension Protection Act of 2006, an organization's tax-exempt status is automatically revoked after three consecutive years of failure to file.
Question 6: Which form is used to request an extension of time to file Form 990?
- Form 4868
- Form 7004
- Form 8868 (Correct answer)
- Form 2758
Correct answer: Form 8868
Form 8868 (Application for Extension of Time to File an Exempt Organization Return) is the correct form for extending the Form 990 filing deadline.
Question 7: The penalty for willful failure to file Form 990 may result in personal liability for which individuals?
- Only the executive director
- Any responsible person who willfully failed to ensure filing (Correct answer)
- Board members who voted against filing
- Only the CFO or treasurer
Correct answer: Any responsible person who willfully failed to ensure filing
The IRS may assess a $5,000 penalty against any responsible person who willfully failed to ensure the organization filed its required return.
CNC Form 990 & Compliance Calendar 3
A nonprofit with a fiscal year ending September 30 has an original Form 990 due date of: