No Tax Return Filing Reprieve for Nonprofits
Yesterday, the IRS issued Notice 2020-17, which clarified comments made by Treasury Secretary, Steven Mnuchin earlier in the week regarding the upcoming April 15 tax filing deadline. Unfortunately, there was no relief provided in the guidance to nonprofit organizations with a Form 990, 990-EZ, 990-PF, and/or 990-T filing requirement for May 15, 2020.
While for-profit entities and individuals were given an extension of time to pay certain tax liabilities normally due on April 15, as it currently stands, non-profit organizations were given no similar flexibility. Nonprofit organizations, arguably, have been equally if not more financially impacted by the recent hit to the global economy that the virus has had. Information coming out of Congress and the Treasury has been very silent on any upcoming relief to the nonprofit sector. However, nonprofit advocate organizations, like the National Council of Nonprofits and the Maine Association for Nonprofits, are encouraging organizations to reach out directly to their state representatives and senators to urge them to pass immediate help to the sector. The National Council of Nonprofits has requested $60B in aid for the charitable sector.
While nothing appears imminent, we will continue to monitor for any information from Congress or the IRS that may offer some help to nonprofit organizations and their own upcoming filing deadline.
For more information, please contact your BNN tax advisor at 800.244.7444.
Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.