What happens if the Form 990 is incomplete?
Under 6652(c) of the Code, a tax-exempt organization required to file a Form 990 that files an incomplete return may be subject to a $20 a day penalty up to a maximum of $10,000 (or 5% of the organization’s gross receipts, whichever is less) for returns for taxable years ending on or after July 30, 1996. The penalty increases to $100 per day up to a maximum of $50,000 for organization whose gross receipts exceed $1,000,000. No penalty will be imposed if the incomplete return is due to reasonable cause.
