Tax Filing Relief Expanded for Exempt Organizations

April 10, 2020 | Article

The IRS recently expanded tax filing and payment relief due to the COVID-19 pandemic. In Notice 2020-23, the IRS automatically postpones the due date until July 15, 2020, for all taxpayers that have a return filing or tax payment deadline that falls on or after April 1, 2020, and before July 15, 2020.
What Exempt Organization Returns are Covered?
The notice specifically lists Forms 990-T, 990-PF, and 4720 and related payments otherwise due between April 1 and July 15, as automatically postponed to July 15, 2020. While it does not directly mention the Forms 990, those returns are covered as well.
Other actions of interest to tax-exempt organizations that are similarly extended to July 15, 2020, include:

  • Filing of Form 1023 within 27 months from the end of the month in which the organization was organized in order to obtain retroactive exemption to date of incorporation
  • Conducting a Community Health Needs Assessment by a hospital to meet the requirements of section 501(r)
  • Making section 501(h) elections related to lobbying
  • Filing Form 8976 to operate as a section 501(c)(4) organization
  • Filing notice by a private foundation of intent to terminate private foundation status before the beginning of the taxable year and notifying the IRS within 90 days of its completion of the five-year termination period
  • Filing certain political organization notifications
  • Submitting central organization group ruling information

We compiled common questions related to tax-exempt organizations and COVID-19.

Are Other Forms, Schedules and Actions Delayed?
The notice also extends the time for other time-sensitive actions such as:

  • Elections made or required in a timely filed return
  • Filing a petition with the Tax Court
  • Filing a claim for credit or refund of any tax
  • Brining suit for credit or refund of any tax
  • Meeting the 45-day and 180-day requirements for section 1031 like-kind exchanges and the replacement period for involuntary conversion property
  • Meeting the 180-day periods for reinvesting eligible capital gains in a Qualified Opportunity Fund.

What action can tax-exempt organizations take?
Notice 2020-23 automatically applies so no action is required to obtain the delay in filing or paying tax until July 15, 2020, for those returns that fall within the April 1 – July 15 window. While this is welcome news for taxpayers, each state will need to separately address its own tax filing and payment requirements.
And, a point of caution, certain fiscal year taxpayers may be coming up on final extension dates within this new extension period; therefore, unless additional extensions are provided, and none are now anticipated, the final extension date for such returns will be July 15, 2020.

Have questions on how this change applies to your tax-exempt organization?

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