To increase transparency of small tax-exempt organizations, those with annual gross receipts of $25,000 or less may be required to file Form 990-N (e-Postcard) in 2008.
"Although the process to file the e-Postcard is painless, many small tax-exempt organizations are not accustomed to filing information returns," explains Karen A. Gries, nonprofit tax manager with LarsonAllen.
"You will lose your tax-exempt status if your organization fails to meet this reporting requirement for three consecutive years," she warns.
The new annual notice is based on the Pension Protection Act of 2006, and pertains to small nonprofits that are currently not required to file Form 990 or
990-EZ.
Exceptions
- Tax-exempt organizations with annual gross receipts that are normally greater than $25,000 that are required to file Form 990 or Form 990-EZ
- Private foundations that are required to file Form 990-PF
- Section 509(a)(3) supporting organizations that are required to file Form 990 or Form 990-EZ
- Organizations included in a group return
- Churches and auxiliaries, conventions, and associations of churches
Due date
The new filing requirement is effective for tax years ending on or after December 31, 2007.
The e-Postcard is due by the 15th day of the fifth month after the close of your tax year.
So if your organization operates on a calendar year, the e-Postcard is due by May 15 of the following year.
What you need to file
Filing your e-Postcard is easy. You’ll need:
- Your organization's name, mailing address, and Web address (if applicable)
- Any other names your organization uses
- Organization's employer identification number (EIN)
- Name and address of a principal officer of your organization
- Organization's annual tax period
- Statement that your organization's annual gross receipts are normally $25,000 or less
- Statement that your organization is going out of business (if applicable)
File your e-Postcard
Organizations must file their e-Postcard electronically because there is not a paper form. Access the Urban Institute Web site (trusted IRS partner) to submit your organization’s Form 990-N.
Public access to filings
To make information on small tax-exempt organizations available to the public, the transparency process includes a plan to launch a disclosure section of the IRS Web site.
Soon, it will be available on the pages for charities and nonprofits.
For more information, contact Karen Gries, krgries@larsonallen.com, at
1-888-529-2648 or view frequently asked questions on the IRS Web site.
To increase transparency of small tax-exempt organizations, those with annual gross receipts of $25,000 or less may be required to file Form 990-N (e-Postcard) in 2008.
Share this with a friend