Non-Profit Tax Reporting Attorney Chicago IL
In order to promote and encourage wise charitable giving in Illinois, the Illinois Attorney General and Secretary of State offer lawfully designated charities to benefit from a variety of tax advantages, such as tax-exempt status. The goal of tax-exemptions for nonprofits is to better proliferate charitable activities in the state while giving donors (who give to tax-exempt, 501(c)(3) nonprofits) the ability to deduct their donations from their own taxes.
To benefit from tax-exempt status, a nonprofit needs to show to the IRS and the Illinois State that its activities are conducted primarily for tax-exempt purposes, as defined by the IRS. Therefore, tax reporting is a mandatory obligation for every nonprofit. For help with all of your nonprofit’s tax reporting needs, it can help to have a prominent Illinois nonprofit lawyer preparing and filing the necessary paperwork in a timely manner. Failure to properly report your taxes can result in the loss of your tax-exempt status.
Annual Reporting Requirements for an Illinois Nonprofit
When operating a tax-exempt nonprofit in Illinois, you’ll need to file the proper documentation to both state and federal entities before each of the designated deadlines. Keep in mind that every Illinois nonprofit needs to complete its initial filing requirements, which include incorporation, Form 1023 for a tax-exempt status, forms for Illinois income tax exemption, and registration with the Attorney General.
After initial filings, registration, and obtaining your tax-exempt status, you need to report your taxes to three organizations every year, including the IRS, the Illinois Attorney General, and the Illinois Secretary of State. Below you’ll find some standard tax reporting requirements. It is important to note, however, that your nonprofit (defined by its size, activities, finances, and more) may dictate your specific filing requirements.
Tax reporting to the IRS: You need to file the Annual Return Form 990. This form is due 4 1/2 months after the end of the fiscal year. Depending on your organization, you may have to file Form 990, Form 990-EZ, Form 990-N, or Form 990PF (for private foundations). Send these reports to:
Internal Revenue Service
Ogden, UT, 84201-0027
Information: (800) 829-1040
Forms: (800) 829-3676
Tax reporting to the Illinois Attorney General: You need to file Attorney General Form AG990-IL. This form is due 6 months after the end of the fiscal year. You must also submit a copy of your IRS Form 990 and you may need an audited financial statement if gross contributions were more than $300,000. Send these reports to:
Office of the Attorney General
Charitable Trusts Bureau
100 West Randolph Street
Chicago, IL 60601-3175
Ph: (312) 814-2595
Tax reporting to the Illinois Secretary of State: You need to file the Annual Report for Nonprofit Corporations. This report is due before the first day of the month of incorporation (if you were incorporated in April, then this report is due April 1st). Send these reports to:
Secretary of State
Department of Business Services
501 S. Second Street
Springfield, IL 62756
Ph: (217) 524-8008
Contact James C. Provenza & Associates, PC for Your Nonprofit Tax Reporting Needs
Tax-exempt status is absolutely critical for the operation of countless nonprofits in Illinois. To maintain this status and remain in compliance with Illinois and federal laws, you need to take your tax reporting very seriously, applying substantial diligence and accuracy to the preparation and filing of these reports.
For comprehensive tax reporting preparation and legal oversight, Chicago nonprofit lawyer James C. Provenza has helped many organizations satisfy their annual tax requirements, and he can help your organization as well. Contact our Chicago nonprofit law office today at (847) 729-3939 to discuss your tax reporting needs with James Provenza, and ensure complete legal compliance with the IRS and the Illinois State.