What happens if an organization doesn’t file or files late?
If you do not file on time, the IRS will send you a reminder notice. Late filing can result in penalties that could cost your organization thousands of dollars. If you have a legitimate reason for filing late the IRS may reduce or forgive the penalty. If you know you will be filing late, you can apply for up to two consecutive extensions of 90 days. However, an organization that fails to file the required Forms 990 for three consecutive years will automatically lose its tax-exempt status.
