What IRS Form 990 (2017) Is For

IRS Form 990 (2017) is the annual federal income tax return that tax-exempt organizations must file to meet IRS requirements. It discloses the organization’s tax payments, financial records, and governance activities for the applicable tax year. Completing this form helps demonstrate compliance with federal income tax laws while showing donors and the public how the funds are utilized.

Organizations that report $200,000 or more in gross receipts or hold $500,000 or more in assets must file a return. Smaller entities may qualify for the simplified Form 990-EZ if eligible. Failure to file or filing taxes late can result in a late-filing penalty, a late-payment penalty, and possibly a loss of exempt status.     

When You’d Use IRS Form 990 for 2017

Organizations file IRS Form 990 for 2017 when they miss the original due date or need to correct an earlier federal income tax return. Late or amended filings resolve unpaid taxes, reduce interest, and restore compliance with IRS regulations.

Filing for Missed Deadlines

Late filers who miss the tax deadline or extension must file quickly to prevent additional IRS penalties. Submitting the required form helps stop further late payment penalties and interest from accruing.

Correcting or Amending a Return

An amended return corrects income, deductions, or governance errors for the 2017 tax year. It also allows an organization to claim refundable credits or estimated tax payments not reported initially.

Responding to IRS Notices

Organizations that receive IRS correspondence about unpaid taxes or penalties should file immediately. Doing so helps ensure compliance and prevents the balance from increasing through continued charges.

Key Rules or Details for Tax Year 2017

Organizations filing IRS Form 990 2for 017 must comply with specific requirements set by the IRS for tax-exempt entities. These rules determine filing eligibility, penalties, and deadlines based on financial activity during the tax year.

• Filing thresholds: Organizations must file if their gross receipts exceed $200,000 or if their total assets exceed $500,000.
  
  
• Late filing penalty: The IRS charges $20 per day for smaller organizations and $100 per day for larger ones, up to 25 percent of the unpaid balance.
  
  
• Interest on unpaid taxes: Interest continues to accrue daily until the tax owed is fully paid.
  
  
• Eligibility for Form 990-EZ: The rule applies to smaller organizations that fall below the filing threshold.
  
  
• Public access requirement: Filed returns remain publicly accessible for three years after submission.

Understanding these rules helps organizations stay compliant and prevent financial issues.
Following them also reduces exposure to penalties and preserves the nonprofit’s tax-exempt status.

Step-by-Step: How to File IRS Form 990 (2017)

Filing IRS Form 990 for 2017 requires accuracy, organization, and attention to deadlines. Each step ensures compliance with IRS law and prevents penalties or interest from increasing on any unpaid balance. Follow the process carefully to avoid filing delays and maintain exempt status.

1. Gather Records: Collect financial statements, meeting minutes, and tax documents for the 2017 tax year.
   
   
2. Confirm Eligibility: Identify whether your organization must file the complete form or qualifies for Form 990-EZ.
   
   
3. Calculate Tax Owed: Review income, deductions, and tax credits to determine your tax liability or refund.
   
   
4. Complete the Form: Fill in all schedules and attach required explanations where applicable.
   
   
5. File a Return: Mail the paper form to the correct IRS address, including your signatures.
   
   
6. Retain Copies: Keep complete records for a minimum of three years for audit and compliance purposes.

Following these steps helps taxpayers stay compliant with IRS requirements and meet their filing obligations. It also reduces the risk of future penalties and supports accurate recordkeeping for upcoming tax years.

Common Mistakes and How to Avoid Them

Completing IRS Form 990 2017 requires precision and attention to every reporting detail. Many organizations face unnecessary delays or penalties when they make errors that could have been avoided with a careful review. Each mistake can affect the accuracy of the federal income tax return and delay processing.

• Using the wrong form year: The 2017 version must match the correct tax year and financial records to avoid processing issues.
  
  
• Omitting required schedules: Each return must include all supporting attachments to prevent compliance failures.
  
  
• Reporting inaccurate income or deductions: Double-check all reported figures and verify income and deductions against supporting documents to prevent penalties or interest.
  
  
• Submitting an unsigned return: Ensure an authorized officer signs and dates the return before submission to avoid rejection or late filing penalties.
  
  
• Leaving a tax balance unpaid: Pay the full balance by the due date or request an installment agreement to prevent additional penalties and interest.

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What Happens After You File

After submitting IRS Form 990 for 2017, the IRS reviews the return to verify compliance with reporting requirements and the accuracy of all financial details. The agency evaluates the organization’s income, deductions, and tax credits for the applicable tax year. Processing usually takes six to eight weeks, depending on workload and filing volume.

If any portion of the tax owed remains unpaid, the IRS assesses penalties and interest until the balance is paid in full. Organizations may qualify for penalty relief if they can show reasonable cause for late filing or payment. Maintaining proper records supports smooth processing and continued exempt status. 

Frequently Asked Questions

What happens if an organization fails to file IRS Form 990 for 2017?

A failure-to-file penalty applies when an organization fails to file a required federal income tax return by the tax deadline. The IRS continues to assess daily charges until the return is submitted or the balance is fully paid.

How is the late filing penalty calculated?

The late filing penalty equals $20 per day for smaller organizations and $100 per day for larger ones. The total amount can reach a maximum of 25 percent of the tax owed and continues until the account is resolved.

What triggers a late payment penalty?

A late payment penalty occurs when taxes remain unpaid after the due date. The IRS charges daily interest until the entire balance is fully satisfied.

Can taxpayers request penalty relief?

Penalty relief may be available for organizations that demonstrate reasonable cause for filing taxes late. The IRS reviews each request individually to determine eligibility for relief.

Are refunds or tax credits available for individuals who file their taxes late?

Refundable credits and tax refunds may still be available if the return meets the eligibility requirements. Late filers must ensure the federal income tax return is accurate to claim the credit or refund.