Penalties for Failure to File Form 990

The penalty to file Form 990, or for failure to include all required information on Form 990 is increased depending on the organization's gross receipts.

For organizations with annual gross receipts $1 million or less, the penalty is $20 for each day the failure continues, with a maximum amount, per return, of $10,000, or 5 per cent of the organization's gross receipts, which ever is less.

For organizations with annual gross receipts in excess of $1 million, the penalty is $100 per day, with a maximum of $50,000.

Effective for returns of tax years ending on or after the date of enactment.