Through much of the past twelve months, the IRS and most publications reaching the nonprofit world, continually reminded nonprofits about the implementation of new filing requirements for 990 forms. Now, in one of the first publicly disclosed cases, the IRS has fined the Steamboat Springs Colorado Education Fund Board almost $170,000 for not filing 990’s for four straight years.
In this – the first year where the IRS can take more severe enforcement action – hundreds of thousands of nonprofits were known to be at risk. It’s likely the IRS will have a few high-profile announcements such as this, with penalties later waived, for nonprofits to realize the government really is taking a stricter approach.
This from Steamboat Today,
… the IRS notified the volunteer group that it owed penalties totaling $168,700. The information came in four notices dated Nov. 8.
As a nonprofit group, the Fund Board does not pay taxes, but it is required to file an annual tax return that includes reporting information such as revenue and contributions, according to the IRS website.
The [IRS] website indicated that a nonprofit group with receipts in excess of $1 million could face $100 daily penalties for late tax return filings, with a maximum of $50,000 annually. Brown said the Fund Board is forecasting the tax to generate about $2 million for the 2011-12 budget cycle.