A new federal bill signed into law last month by President Obama includes a provision that makes work “a little less cumbersome” for CPAs filing tax returns for non-profit organizations, according to the New York State Society of CPAs.
The provision, included in the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, allows a streamlined automatic six-month extension when requested for federal tax filings of Form 990. Form 990 is an informational tax form that most nonprofit organizations must file annually to maintain their tax-exempt status.
Previously those tax filers could only request separate three-month extensions. The state CPA society last year recommended the change to a single six-month extension in a comment letter to the Internal Revenue Service.
“We thought the former process of filing, and awaiting approvals, of separate three-month extensions was an unnecessary burden for nonprofit groups and additional workload for the IRS,” said Joanne S. Barry, executive director and CEO of the NYSSCPA, in a press release. The CPA group noted the elimination of second extension requests also will result in personnel cost savings for the IRS.
The Society in its letter suggested that corporate, partner , individual and fiduciary returns had all moved to a single extension for the maximum amount of time allowable associated with their federal returns. In New York, charitable and exempt organizations have been granted a single 180-day extension for filing their reports.
“It”™s satisfying to know this change is in the best interest of the IRS and the tax-exempt industry, taxpayers and tax professionals,” Barry saidÂ
Isn’t the extension now 6 months, not 60 days? See Section 2006(b).
Thanks, David, for pointing out that error in our original report. The automatic extension is for six months, not 60 days.