Tax990 Knowledge Base

What are the penalties for not filing or incorrect filing of Form 990-EZ?

If nonprofits and tax-exempt organizations don’t file Form 990-EZ on time or file with incorrect information, they will be subjected to a penalty. This penalty amount depends on the organization’s size.

• For smaller organizations (Gross receipts < $1,208,500), the penalty amount is $20 for each day. The maximum penalty for each return will not exceed the smaller of $12,000 or 5% of the organization's gross receipts for the year.
• For larger organizations (Gross receipts > $1,208,500), the penalty amount is $120 for each day. The maximum penalty for each return won't exceed $60,000.