IRS Logo
Print - Click this link to Print this page

Annual exempt organization return: Penalties for failure to file

If an organization fails to file a required return by the due date (including any extensions of time), it must pay a penalty of $20 a day for each day the return is late.  The same penalty applies if the organization does not give all the information required on the return or does not give the correct information.
 
In general, the maximum penalty for any return is the lesser of $10,000 or 5 percent of the organization's gross receipts for the year.  For an organization that has gross receipts of over $1 million for the year, the penalty is $100 a day up to a maximum of $50,000.

If the organization is subject to this penalty, the IRS may specify a date by which the return of correct information must be filed.  If the return is not filed by that date, an individual within the organization who fails to comply may be charged a penalty of $10 a day.  The maximum penalty on all individuals for failures with respect to a return shall not exceed $5,000.

Please note: Automatic revocation occurs when an exempt organization that is required to file an annual return (e.g., Form 990, 990-EZ or 990-PF) or submit an annual electronic notice (Form 990-N, or e-Postcard) does not do so for three consecutive years. Under the law, the organization automatically loses its federal tax exemption.

Penalties for failure to file may be abated if the organization has reasonable cause for the failure to file timely, completely, or accurately.

Page Last Reviewed or Updated: 28-Aug-2014