Computer Upgrades Extend Form 990 Filing Period
Upgrades to the IRS’s Modernized e-File (MEF) system means some nonprofits will get more time to file their Form 990.
On December 6, 2011, the IRS announced that the MEF system will not be available between January 1, 2012, and February 29, 2012. Organizations required to electronically file Forms 990, 990-EZ, 990-PF, and 1120-POL returns during the outage will now have until March 30, 2012. The suspension period does not impact filers of 990-N e-postcards.
The extension automatically applies to organizations with due dates during the affected dates, even if they are not required to electronically file their returns. The extension is not available for organizations that have already received two three-month extensions. Those organizations can file paper returns instead.
In Notice 2012-4, the IRS also said it will abate late filing penalties due to reasonable cause for organizations that cannot file between January 1, 2012, and February 29, 2012, and who subsequently file electronically by March 30, 2012. However, this will likely not prevent impacted organizations from receiving a notice, which will require a response.