Finding 624752 (2022-001)

-
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-18

AI Summary

  • Core Issue: The 2019 tax return for the organization was not filed by the IRS deadline due to a listing error.
  • Impacted Requirements: All 501(c)(3) organizations must file their 990 tax return by the 15th day of the fourth month after their tax year ends.
  • Recommended Follow-Up: Ensure timely filing of tax returns in the future to avoid penalties.

Finding Text

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: Resolved Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: The Internal Revenue Service requires all 501(c)(3) organizations to file a 990 tax return by the 15th day of the fourth month proceeding the end of the organization?s tax year. Statement of Condition: The 2019 tax return was not filed by the deadline. Cause: The project was not listed as an exempt organization in the IRS database causing all attempts to e-file the tax return to be rejected. A paper copy of the return was provided to the owner to file with the IRS but the return was never filed. Effect or Potential Effect: The 2019 tax return was not filed by the deadline. Auditor Non-Compliance Code: Z Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The 2019 tax return has been filed and the late filing penalty has been paid in full. Context: The 2019 tax return was not filed by the deadline. Recommendation: The project should file its tax return on a timely basis. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The 2019 tax return has been filed and the late filing penalty has been paid in full. Response Indicator: Agree Completion Date: December 1, 2022 Response: Management agrees with the finding. The 2019 tax return has been filed and the late filing penalty has been paid in full.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.33M
14.218 Community Development Block Grants/entitlement Grants $33,012