So you’ve started your nonprofit. How do you stay a nonprofit? There are two critical forms that every tax exempt nonprofit organization in Michigan must file each year to stay compliant – the Michigan Nonprofit Corporation Annual Report and the IRS Form 990.
The Michigan Nonprofit Corporation Annual Report is filed on the State of Michigan’s new Corporations Online Filling System (COFS). This annual report is not the beautifully designed masterpiece that is sent to all your stakeholders, but a simple online form. It comes filled out with the most recent information that the State of Michigan has on file. Updates that are made to the file include new board members, change in address or resident agent. It is due by October 1 of each year. If you do not file this report for two years in a row, the State of Michigan starts the dissolution process. This form costs $20 to file. More information on the Annual Report can be found at https://www.michigan.gov/documents/lara/BCS_CD_269_08-15_527658_7.pdf
The IRS Form 990 is filed by all organizations that fall under IRC 501. This form is filed instead of a tax return, as tax exempt entities don’t pay income tax. There are different versions of the Form 990, including the 990N, 990EZ and 990. All versions of the 990 are due the 15th day of the fifth month after the organization’s budget year end. For example, if your budget year corresponds with the calendar year, your form is due by May 15. If a form 990 is not filed on time, penalties are assessed. After three consecutive years of not filing Form 990, an organization’s tax-exempt status is revoked.
Not sure what to file when? We can help! Contact firstname.lastname@example.org for your consultation.