Small Nonprofits Must File “E-Postcard” with the IRS

April 23rd, 2009 by Melissa

Annual Electronic Filing Requirement for Small Exempt Organizations — Form 990-N (e-Postcard)

Small tax-exempt organizations (with annual revenue of $25,000 or less) are required to file annually a “Form 990-N” (also called the “e-Postcard”) to maintain their tax-exempt status.

The Form 990-N is due on May 15th (if the organization’s fiscal year is the calendar year), or the 15th day of the fifth month after the close of an organization’s fiscal year. Unlike the other Forms 990, no extension is permitted.

The Form 990-N is simple and must be filed electronically through http://epostcard.form990.org. The organization will be required to provide the following information:

• Legal name of the organization and any “doing business as” name;
• Mailing address and, if applicable, website address of the organization;
• Taxpayer identification number (EIN) of the organization;
• Name and address of a principal officer;
• Statement that the organization’s gross receipts are still $25,000 or less; and
• If applicable, a statement that the organization has terminated or is terminating (going out of business)

This filing requirement does not apply to organizations who are exempt from filing for reasons other than the annual income test.  For example, churches are not required to file the Form 990-N.

If an organization does not file this “e-postcard” for 3 consecutive years (the first year being 2008), the organization will lose its tax-exemption as of the third non-filing year and have to reapply to the IRS (and pay the fee)  to reestablish its tax-exemption.

So tell your favorite neighborhood group to file this simple form!

More information about the 990-N is also available at IRS.gov, Charities & Nonprofits, Annual Electronic Filing Requirement for Small Exempt Organizations.