IRS Announces Delay in e-File Operations for 990 Filers

Because of updates to the Modernized e-file (MeF) system being made between 1/1/2012 and 2/29/2012, the IRS is granting an extension of time to file to March 30, 2012 to organizations whose due date or first extended due date falls within the update period. Organizations required to file electronically may file electronically between March 1, 2012 and March 30, 2012, or may opt to file a paper return during the suspension period instead. Of course, affected organizations may request an additional 3-month extension if they have not already done so. Organizations that have already been granted two extensions for a total of six months may not request a further extension. In that case, the IRS has promised to grant relief from late filing penalties to organizations who wait until March 30 to e-file. Or, the organization may paper file its return by the due date to avoid the late penalty issue altogether. See also IR-2011-120, Filing Deadline Extended to March 30 for Some Tax Exempt Organizations (December 16, 2011).