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.

our thoughts on

array(3) { [0]=> string(2) "53" [1]=> string(1) "6" [2]=> string(1) "9" }
What Happens if Your Tax Return is Lost in the Mail?
Artificial Intelligence in Higher Education
Why Higher Education Institutions Must Comply with GDPR
International Tax Update: OECD Releases Latest Edition of Model Tax Convention
The Dichotomy of Cybersecurity in Higher Education
Additional Opportunity Zone Regulations Issued

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

Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

contactsd@schneiderdowns.com
p:614.621.4060     f:614.621.4062