Tax season is here and change is in the air, especially for small nonprofit organizations. Small nonprofit organizations that previously were not required to file a return with the Internal Revenue Service now must do so. Beginning in 2008 small nonprofits with gross receipts of $25,000 or less are now required to file electronically Form 990-N with the IRS annually.
Form 990-N also known as the e-Postcard must be filed electronically. Because the system will be Internet based organizations should not need to purchase software to file the e-Postcard.
Filed annually, the e-Postcard will be due every year by the 15th day of the fifth month after the close of your tax period. For example, if your tax period ends on December 31, 2007, the e-Postcard is due May 15, 2008.
When filing the e-Postcard you will need the following information:
- Organization’s name
- Any other names your organizations uses
- Organization’s mailing address
- Organization’s website address (if applicable)
- Organization’s employer identification number (EIN)
- Name and address of a principal officer of your organization
- Organization’s annual tax period
- A statement that your organization’s annual gross receipts are still normally $25,000 or less
- If applicable, indicate your organization is going out of business
Organizations who fail to file the e-Postcard or Form 990 or 990-EZ for three consecutive years are subject to having their tax-exempt status revoked by the IRS. To have your status reinstated you will have to reapply and pay the appropriate user fee. Reinstatement of your tax-exempt status may be retroactive if you are able to show that you had reasonable cause for not filing.
For the latest information on the e-Postcard visit www.irs.gov/eo
or call the IRS customer service line at 1-877-829-5500.
Information provided by Frequently Asked Questions, New Annual Electronic Notice – e-Postcard (Form 990-N), April 3, 2007, www.irs.gov