- What it means
- A penalty was assessed against your tax-exempt organization for a late or incomplete return.
- Respond within
- 30 days from the date on the notice
- What to send
- Payment, or a reasonable cause request.
- Write it
- Reasonable cause statement
- When to get help
- If the organization missed multiple years, check its exempt status; three missed years means automatic revocation.
What the letter says
Form 990-series returns carry a daily penalty for late or incomplete filing, up to an annual maximum that depends on the organization's gross receipts.
What to do
File or complete the return if that has not happened. Then request abatement with a reasonable cause statement covering the specific period. Volunteer-run organizations with a turnover in officers often have a legitimate story; tell it with dates.
What to gather
- The notice
- The return in question
- Board minutes or records showing the circumstances
Write back
The Reasonable cause statement tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.