Page 120 - Washington Nonprofit Handbook 2018 Edition

(iii) Exception for Churches and Certain Religious Organizations

Churches and certain religious organizations that are affiliated with a church

are not required to file an information return. For these purposes, “church”
encompasses synagogues, temples, mosques, and other charitable houses of
worship.

(iv) Filing Date

The return or the electronic notice must be filed on or before the 15th day of
the fifth month following the close of an organization’s annual tax accounting
period (i.e., May 15 for a calendar-year organization). Organizations may request
one automatic six-month extension of the due date by filing Form 8868. The Form
8868 must be filed no later than the initial due date for the Form 990.

(v) Professional Preparation

An organization may, at its election, either prepare its own Form 990 returns
or utilize a professional service. Section 501(c)(3) organizations that rely on a public
support test for public charity classification, supporting organizations described in
section 509(a)(3), and private foundations should seriously consider engaging a
professional accountant with experience in preparing this type of return.

(vi) Treatment as a Public Relations Document

Form 990 information returns are public documents. A 501(c)(3) organization
must disclose to the public upon request its Form 990 returns for the three most
recent tax years. Form 990 returns are available at the Guidestar website,
https://www.guidestar.com.

(vii) Penalties

Failure to file a Form 990 in a timely manner may result in penalties of $20
per day, with a cap of the lesser of $10,000 or 5% of the organization’s gross
receipts for the year. For large organizations (those organizations whose gross
receipts exceed $1 million for any year), the penalty is $100 per day, with a cap of
$50,000. The penalty may be abated if reasonable cause is shown. An incomplete
Form 990 information return may be treated as a failure to file, with penalties
assessed.

WASHINGTON NONPROFIT HANDBOOK -109- 2018