Small tax-exempt non-profit organizations must now fill a short electronic form, called Form 990-N, with the IRS.
What is IRS Form 990-N?
Form 990-N, also called the E-postcard, is a short electronic notice that most small, tax-exempt organizations (such as 501(c)3s) have to file with the IRS, starting in 2008 for activities from January 1, 2007 onward. Form 990-N is a way of ensuring transparency among small non-profits.
Who must file Form 990-N?
If your nonprofit organization:
- Is Tax-exempt
- Has gross receipts of $25,000 or less
- Is not required to file another IRS form such as Form 990, Form 990-EZ, or Form 990-PF
- Is not part of a group return
Then the organization must file the e-postcard with the IRS. Your organization may choose to submit a completed IRS Form 990 or Form 990-EZ instead. However, the Form 990-N is much simpler and quicker to fill out.
What is required in Form 990-N?
The IRS’s e-postcard is short and simple. Here is what you must provide:
- Organization’s name
- Any other names your organization 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 if your organization is going out of business
Why is Form 990-N necessary?
Before, most small non-profits (grossing less than $25,000 a year) did not have to file anything with the IRS. However, the Pension Protection Act of 2006 (PPA) changed that. Requiring that you file annually ensures that the IRS and potential donors can access up-to-date information on your organization.
How do I file Form 990-N?
The IRS requires that the e-postcard be filed electronically. There is no paper form. You must be able to access the internet, but no software or download is required. If your non-profit does not have a computer, you will be able to fill out Form 990-N using a computer at a public library.
When is Form 990-N due?
Form 990-N must be filed every year; however there is no one due date for filing the e-postcard. Instead, you must file “by the 15th day of the 5th month after" your non-profits’ fiscal year ends. For instance, if your fiscal year is the same as the calendar year (ie, ending on December 31st), your organization does not need to file the e-postcard until May 15.
What happens if I don’t file Form 990-N?
If your non-profit fails to file the e-postcard for three consecutive years, the IRS will revoke the organization’s tax-exempt status. Form 990-N is meant to be quick and easy to file, however, so there should be no reason for this to happen.
