Are you a CPA dealing with an Iron Arrest penalty notice because you forgot to file your nonprofit client's Form 990 on time? If you are, I want you to understand that you have the same opportunity as your client to have the penalty abated due to reasonable cause. Many CPAs work for nonprofits at reduced or even free rates, and the majority of their clients are for-profit companies and individuals. Therefore, it's not uncommon for nonprofit due dates to slip by unnoticed. As long as you and your firm have not consistently filed returns late in the past, you are in a good position to avail yourself of the reasonable cause provisions. However, there is one important thing that many CPAs seem to overlook. If you are waiting on the audit for a nonprofit and have already extended the Form 990 deadline as far as possible, but the audit is still not finished, you must still file something. Take whatever trial balance you have and file the best Form 990 that you can. Later, when the audit numbers become available, you can amend the return if there are material differences. Remember, stating that the audit isn't finished yet is a valid reason for an extension. However, once the extensions have expired, you must file something. For assistance with Form 990, visit form990help.com.
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Video instructions and help with filling out and completing Can Form 843 Adjustment
