The IRS May Reject Faulty Paper Filed Exempt Organization Returns

Electronically submitted tax returns that are incomplete or incorrect are rejected automatically by the IRS.  However, faulty paper-filed returns do not get rejected, and instead, the IRS works with the filers to gather any missing information or correct faulty data. 

At a recent Tax-Exempt/Government Entities Council program on June 16, Maria Hooke, Director of Exempt Organizations Examinations with the IRS Tax-Exempt and Government Entities Division, said that the IRS is trying to change the process so that improperly submitted paper returns are rejected when filed.  If an organization files an incorrect or incomplete return, the return will be sent back to the filer, and the filer will need to submit a new return by the due date to avoid late penalties.

The new rule will likely motivate more organizations to file their returns with the IRS electronically.  The change in policy may also cause more organizations that file paper returns to be exposed to late-filing penalties.  Electronic filing allows for much faster turnaround time when resubmitting a return with the IRS than sending a paper return in mail.

The IRS hopes the change will take effect January 1, 2018.

For more information, please contact Schneider Downs or visit the Our Thoughts On blog.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Tax, Tax Policy BY Kirk Mitchell
Summary of President Biden’s 2025 Revenue Proposals Released in Treasury’s Greenbook
The Importance of Certified Business Valuation Professionals
Tax, Tax Impact BY Jared Sofranko
IRS Tax-Exempt and Governmental Entity New Compliance Programs
Tax BY Brianna Lundy
Employee Retention Credit: IRS’s Voluntary Disclosure Program Expiring on March 22, 2024
Pell Grant Program Facing Shortfall
Pillar Two is Here; Is Your Company Ready?
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us
Pittsburgh

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×