Good news for Illinois Not-For-Profit organizations out of the Illinois Attorney General’s office: New rules effective October 29, 2024, should simplify the extension and filing process of the charitable organization annual report, Form AG990-IL. 

Under the old rules, the annual report was due within six months of the organization’s fiscal year end and was eligible for two extensions. 

• The first was a 60-day extension and required filing a written request with the Attorney General prior to the report due date.
• If needed, a second extension was available to align the due date with the Federal Form 990 six-month extension. However, this second extension had many administrative requirements, creating a significant burden.  These requirements included:
  • A written request for the additional extension;
  • A complete “draft” of the Form AG990-IL;
  • A copy of financial statements that included a balance sheet and income statement;
  • Payment of the $15 statutory filing fee; and
  • A copy of a timely filed IRS Form 8868, Application for Automatic Extension of Time To File an Exempt Organization Return.

Fortunately, the extension rules have changed.  Going forward, if you choose not to do two extensions, the Illinois Attorney General’s office will allow a single extension with significantly fewer administrative items than previously required.  This single extension will align with the Federal extended due date and should contain: 

• A written request for the longer extension period. In a calendar year example, this would need to be done by June 30^th, with an extension request due date of November 15^th, to align with the Federal Form 990 extension due date; and
• A copy of the IRS Form 8868.

As previously mentioned, this change is effective for filings made after October 29, 2024.  If your organization has already filed the traditional 60-day extension, it will be necessary to file a second extension as in the past.  When filing this second extension, the organization should specifically request in writing an extension that aligns to the Federal extended due date and provide a copy of IRS Form 8868.  The $15 filing fee, “draft” Form AG990-IL, and financial statements will not be required. 

When an organization is ready to file the extended Form AG990-IL, it will be required to attach the following items to the return:

• Copy of the IRS Form 990 series return;
• Audited financial statements (organizations with contributions greater than $500,000) or Reviewed financial statements; (organizations with contributions greater than $300,000 but no more than $500,000); and
• $15 annual report filing fee.

This change should greatly reduce the administrative burden of the extension and filing process with the Illinois Attorney General’s office.  Click here for additional information from the Illinois CPA Society on these changes.

For more information, contact Ali Fetzer at [email protected] or 312.670.7444. Visit ORBA.com to learn more about our Not-For-Profit Group.  Sign up here to receive our blogs, newsletters and Client Alerts.