Ensure your nonprofit stays on track with these must-know tax filing dates.
April marks a significant period for nonprofits, not only as a precursor to the May 15 deadline for 990 filings but also as a month punctuated with critical deadlines of its own.
The following list of April tax deadlines highlights filings that, while might not be as well-known as the 990, are equally important for many organizations. This includes the necessity of addressing foreign bank accounts, political activity expenditures, unrelated business income tax, personal property taxes in specific states, and obligations related to for-profit subsidiaries.
FinCen114 filing: The Financial Crimes Enforcement Network (FinCEN) Form 114, also known as the Report of Foreign Bank and Financial Accounts (FBAR), is required to be filed by U.S. organizations that have a financial interest in or signature authority over foreign financial accounts. The aggregate value of these accounts must exceed $10,000 at any time during the calendar year.
Deadline: April 15, however, if an organization is unable to file by this date, an automatic extension is available, which extends the deadline to October 15. That said, if an organization is filing this return after April 15 but before October 15, you must give a reason when you do end up filing.
1120-POL: This filing is required when an organization not exempt under 501(c)(3) incurs political activities expenditures and has net investment income of greater than $100. Net investment income includes interest revenue, dividends revenue, and realized gains. When filing the 1120-POL, the lower of political activities expenditures or net investment income would be taxable to the organization.
Deadline: The initial filing deadline is April 15, but an extension can be filed by this date, which extends the deadline to October 15. Even though the return can be extended, the tax due with the 1120-POL must be paid with the extension by April 15.
Note: An accompanying state corporate return would need to be filed with the 1120-POL and the same rules for the extension and tax payment date apply to the state as it does to the federal. Please consult with your tax advisor on this matter. Your tax advisor can help you determine if your organization is required to take care of these filings.
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1st Quarter estimated payments for organizations with unrelated business income: Organizations that have gross unrelated business income of greater than $1,000 are required to file the Form 990-T to report revenue and expenses for the unrelated activity and pay any income tax that would be due. For any of these organizations that normally calculate more than $500 tax due on their 990-T are required to pay the tax quarterly as opposed to paying with the extension or when filing the return.
Deadline: For calendar year-end organizations, the 1st quarter estimated tax is due April 15. The rules can be complicated when it comes to requirements for making estimated tax payments, so please consult with your tax advisor on this matter.
Maryland Personal Property tax returns: Nonprofits that are registered in Maryland need to file the Maryland Personal Property Tax return.
Deadline: April 15 regardless of an organization’s year-end. This return can be extended to June 15 on the Maryland State Department of Assessments and Taxation (SDAT) website.
Organizations with for-profit subsidiaries: Calendar-year exempt organizations that own a C Corporation as a for-profit subsidiary need to file a Form 1120 and state return for that subsidiary. (For S Corporations filing Form 1120S, that deadline was March 15.)
Deadline: The 1120 and state return are due April 15 but can be extended to October 15. Even though the return can be extended, the tax due with the 1120 must be paid with the extension by April 15. Same goes for the corresponding state tax return. Please consult with your tax advisor on this matter. Your tax advisor can help you determine if your organization is required to take care of these filings.
Understanding these obligations and preparing in advance can significantly ease the stress associated with tax season and prevent potential penalties. Reach out to Han Group with any questions or for further clarification!
