Penalty Abatement for Non Profit 990’s We can get penalties abated!
Because of no fault of the board members or directors tax forms and tax returns do not get filed. I found myself in this dilemma not long ago. An accountant did not file 990 tax returns and the accountant moved and he would not respond to our request to help on a situation he created. This is where I was able to fully resolve the problem. This responsibility belonged to someone else and now you have to deal with the penalties and interest due to someones failure. I cannot tell you how many times this happens.
Most individuals are doing a very kind act serving as a guiding member of a charity or non profit and the next thing you know, you are whacked with penalties and interest from the IRS. This situation will have a damaging effect on the charity or non- profit.
As a member of the board you can ask the IRS to reduce some or all of the penalties and interest they may be assessing. Some of the most common penalties non profits face are: failure to file penalties, failure to pay penalties, late filing penalties. According to the IRS, penalty relief falls into four categories;
- Reasonable Cause,
- Statutory Exceptions,
- Administrative Waiver,
- Correction of Service Error.
Most cases involving Not for Profit companies fall under the Reasonable Cause Sections. The IRS does have pity on non- profit corporations.When I worked as a former Agent with the IRS it was part of my job to examine cases for the possible abatement of these penalties. There is a specific avenue to take when asking IRS for this request. Follow some of these tips:
1. Have your case fully documented
2. Get supporting affidavits from other individuals involved with the problem.
3. Sign your affidavit under penalties of perjury, look more official
4. Make sure the time line of the failure to preform matches the penalty period.
It would be in your best to hire Fresh Start Tax and let former IRS Agents resolve this matter. It will be money well spent. See our home page and contact me directly.
