As your organization heads into the new year, it is a good time to review or create a calendar of filing deadlines. Taking the time to look ahead and assign reports to staff will ensure your organization stays compliant with federal, state, local, and grantor reporting requirements.
Federal Filing Deadlines
Non-profit organizations in the United States are required to file annual returns with the Internal Revenue Service (IRS) to maintain their tax-exempt status. The primary forms used for this purpose are Forms 990, 990-EZ, 990-PF, and 990-N (e-Postcard). These forms are generally due by the fifteenth day of the fifth month following the end of the organization’s accounting period. For example, if the tax year ends on December 31, the return is due by May 15 of the following year. Organizations can request an automatic 6-month extension by filing form 8868 on or before the original due date.
All organizations are required to file form 941 on a quarterly basis with the IRS. The due dates are April 30, July 31, October 31, and January 31 (for the fourth quarter of the previous year). This form reports income taxes, Social Security tax, and Medicare tax withheld from employee’s paychecks. If your organization works with a third-party payroll company, this step might be as simple as checking that the third-party company filed the form.
All organizations are required to file W-2 forms and deliver these to their employees by January 31 each year. In addition, employers who make payments to independent contractors must file Form 1099-NEC, Nonemployee Compensation, and provide a copy to the recipient by January 31.
Some types of payments to individuals or certain entities are required to be reported to these entities on form 1099-MISC by January 31. Form 1099-MISC is used to report miscellaneous income such as rents, royalties, prizes, awards, and other types not covered by other 1099 forms. For example, if a business pays $600 or more in rent to a landlord, it must file a 1099-MISC to report that payment. Similarly, payments for medical and health care services, attorney fees, and other non-employee compensation that do not fall under Form 1099-NEC must be reported using Form 1099-MISC.
It’s important to note that payments to corporations are generally not required to be reported on Form 1099-MISC, with some exceptions such as medical and health care payments and attorney fees. Additionally, businesses must provide form 1099-MISC to the recipient by January 31 but have until February 28 to file this information with the IRS.
Washington State Filing Deadlines
In Washington State, non-profit organizations are required to file an annual report with the Secretary of State to keep their Unified Business Identifier (UBI) active and remain in good standing. The annual report is due by the last day of the month in which the organization was originally formed.
Additionally, non-profit organizations in Washington State must file the following:
- Nonprofit Property Tax Exemption Renewal: This renewal is due by March 31 each year.
- Charitable Organization Renewal: This renewal is typically due annually, and the specific due date can vary. The Secretary of State, Corporation and Charities Division will send a notice to the charitable organization’s address about 45 days before the due date.
Other Considerations
Knowing a report’s due dates is important—but also consider adding when work on the report will start. This helps prevent errors and late nights. For example: in November, start reviewing vendors to see which ones qualify for 1099; this early start gives you time to track down W-9’s and, if needed, other relevant information for providing a 1099.
When an organization receives a grant, make sure to add the reporting requirements to the calendar. Many grant reports require non-financial information, so keep a close eye on whether those reports or section of reports are assigned to the correct person.
In addition to filing deadlines, businesses should regularly review their insurance policies to ensure they have adequate coverage for their operations. This includes evaluating liability, property, and workers’ compensation insurance to protect against potential risks and losses.
Businesses should also consider the timing of their financial audits and reviews. Scheduling these audits well in advance of filing deadlines can help identify and address any issues that may arise, ensuring that financial statements are accurate and compliant with regulatory requirements.
Internal controls play a crucial role in ensuring that businesses meet their filing deadlines as well. Establishing clear procedures for document preparation, review, and submission, as well as regular audits and checks to verify compliance with regulatory requirements, will allow for timely corrective actions and ensure that all filing obligations are met without last-minute rushes or penalties.
Additionally, businesses should stay informed about any changes in tax laws and regulations that may impact their filing requirements. This includes staying up to date with federal, state, and local tax codes to ensure compliance and avoid potential penalties.
By taking these additional considerations into account, businesses can ensure they are well-prepared for filing deadlines and maintain overall compliance and operational efficiency. If you have questions or would like more information on meeting filing deadlines, contact DZA.
