Nilan Water Users Association

“Agricultural landowners holding water contracts within the district.”

“The association has no committees.”

“This is the first full 990 required by our association. Our board of trustees has always been provided periodic treasurer reports, but has not been required to review the annual informational tax return. We are now seeing the value of having a review process in order to help ensure complete and accurate filings going forward and will take under advisement a procedure to do so.”

“We live in a close-knit rural community. Members and the local public know the trustees of our association and are welcome to request our public documents, to review our finances, and/or to attend our trustee meetings. Our Secretary-Treasurer maintains all vital documents and is happy to meet with people to answer inquiries. People can also contact her via US mail or by telephone.In addition, our informational tax returns are currently available at www.IRS.gov:https://www.irs.gov/charities-non-profits/tax-exempt-organization-search”

“Client Note 1 - STATEMENT OF REASONABLE CAUSE FOR LATE OR INCOMPLETE FILING:IRS LETTER LTR2695CDated: March 15, 2022IRS Envelope Postmarked: March 24, 2022Received via US Mail in Augusta, Montana: March 30, 2022Deadline provided in letter 10 days from date of letter: March 25, 2022We originally and timely filed our 2019 annual return using Form 990-EZ, which we've been self-preparing for many years. Our organization is mostly volunteer-run and we were not aware of the $500,000 asset limit on the 990-EZ form, only the $250,000 limit on annual gross receipts, which our association is well within. Our assets grew from $476,092 in 2018 to $514,962 in 2019, and thus exceeded the limit for the first time.Thankfully, the Internal Revenue Service brought this matter to our attention in the letter referenced above and returned our original filing to us. This letter was not delivered to us here in rural Montana until five days after the deadline. We have made every effort to respond immediately, completely, and accurately. We believe our circumstances provide reasonable cause to allow re-submission of this filing without further consequence or penalty, and we greatly appreciate the IRS' generosity of grace and abatement in this matter.”