Legal Question in Tax Law in Illinois

I need to file an IRS 990N for an IL nonprofit (NP). The most recent tax year was 7/1/16-6/30/17 and so I need to file by 11/15/17. The NP shutdown effective 6/30/17. On the 990N, I was going to check the box that "the organization has terminated or gone out of business." There was some activity in the 2 months after the effective date of termination. In July and August, the NP needed to wind up its business and dispose of its only asset (cash). The NP used the remaining funds in its account for expenses and member scholarships bringing its account to a zero balance. In order to offer an extra scholarship, the Pres. deposited $280 of her money in the account earning $.03 of interest. Since the NP shut down, can this be the final return or since there was a deposit and interest accrued in July and August (the new fiscal year) do I need to file another 990N when the next fiscal year ends 6/30/18. If I need to file another 990N, should I check the box on this 990N that the NP terminated?


Asked on 11/12/17, 9:12 pm

1 Answer from Attorneys
Virginia Prihoda Law Offices of Virginia Prihoda

It would probably be a good idea to let it ride for another year to enable the president to claim a charitable donation for the contribution of funds made to the organization in the current year (and to account for the expenses presumably paid in the current year). You'd also have to file a tax return with the Illinois attorney general.

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Answered on 11/13/17, 7:53 am


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