CNC Form 990 & Compliance Calendar 3

Question 1

A nonprofit with a fiscal year ending September 30 has an original Form 990 due date of:

Accepted Answer

February 15

Answer

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?

Accepted Answer

6 months

Answer

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:

Accepted Answer

$100 per day

Answer

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:

Accepted Answer

Under $50,000

Answer

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?

Accepted Answer

3 years

Answer

Under the Pension Protection Act of 2006, an organization's tax-exempt status is automatically revoked after three consecutive years of failure to file.

(CNC) Certified Nonprofit Consultant Practice Test

(CNC) Certified Nonprofit Consultant Practice Test

CNC Form 990 & Compliance Calendar 3