IRS Experiencing Delays: Exempt Organizations are Encouraged to e-file Forms 8868 and 990-ez

The Internal Revenue Service (IRS) recently announced that it is experiencing delays in processing paper-filed returns.

The IRS emphasized that organizations that filed and continue to paper file Form 990-EZ, Short Form Return of Organization Exempt from Income Tax, and Form 8868, Application for Extension of Time to File an Exempt Organization Return, may potentially be at risk of receiving premature notices for failing to file the required returns.  Paper filing may also cause a delay in receiving the IRS extension approval confirmation letter. Therefore, organizations are strongly advised to file these forms electronically.

However, it should be noted if such forms had already been paper filed, no further actions should be taken.  The IRS has indicated that organizations should not submit a copy of the originally filed return.  The IRS is also requesting that organizations not contact its offices to question the status.

The Taxpayer’s First Act, enacted in July of 2019, requires tax-exempt organizations to electronically file information returns.  The new law affects tax-exempt organizations in tax years beginning after July 1, 2019.   For small tax-exempt organizations, the legislation specifically allowed for a transitional period. For tax years ending before July 31, 2021, the IRS will accept either paper or electronic filing of Form 990-EZ, Short Form Return of Organization Exempt from Income Tax. For tax years ending July 31, 2021, and later, Forms 990-EZ must be filed electronically.

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.

© 2022 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
UPDATE: Inflation Reduction Act – Final Senate Version Eliminates the Change in Carried Interest Rules
Inflation Reduction Act – Tax Provisions Included in Proposed Legislation
Is your Venmo transaction reportable? - IRS intensifies 1099-K reporting requirements for Third-Party Network Transactions
What is the FICA Tip Credit and How Can Employers Take Advantage of It?
Deferring Gain on Sale of Vacation Property
Some Things You Probably Aren’t Thinking About as a Dealer When It Comes to the Rise in Interest Rates
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

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.