IRS Summertime Tax Tip 2008-07

Beginning in 2008, small tax-exempt organizations that were previously not required to file a return may be required to file an annual electronic notice. The notice is Form 990-N, Electronic Notice (e-Postcard) for Tax Exempt Organizations Not Required to File Form 990 or 990-EZ, and the new filing requirement applies to tax years ending on or after December 31, 2007.

The electronic notice (or e-Postcard) is a provision of the Pension Protection Act of 2006 and applies to small tax-exempt organizations – organizations not required to file Form 990 or 990-EZ because their gross receipts are normally $25,000 or less. Not all small tax-exempt organizations will have to file the e-Postcard. Some exceptions are organizations included in a group return and private foundations required to file Form 990-PF. Also, the e-Postcard requirement does not apply to churches, their integrated auxiliaries, and conventions or associations of churches.

Filing the e-Postcard is free and easy. To file, small tax-exempt organizations will need only a few basic pieces of information: the organization’s employer identification number, its tax year, legal name and mailing address, any other names used, an Internet address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less.

The due date for filing Form 990-N is the 15th day of the fifth month after the close of the tax-exempt organization’s tax year. If the e-Postcard is not filed on time, the IRS will send a reminder notice but will not assess a penalty for late filing.   The new law provides that organizations that do not file Form 990-N for three consecutive years will lose their tax-exempt status.

For more information or to file the e-Postcard, go to the Charities and Non-Profits page of IRS.gov.  The IRS also has launched a disclosure site on IRS.gov where the public can view a particular organization’s e-Postcard. 

If you would like more information on exempt organizations, sign up for Exempt Organization’s EO Update, an e-mail newsletter that highlights new issues and activities affecting exempt organizations. To subscribe, go to www.irs.gov/eo and click on “EO Newsletter” or  “EO Update.” Information on tax-exempt organizations, including the e-Postcard, can be found on the IRS Web site at IRS.gov.

Remember that for the genuine IRS Web site be sure to use .gov.  Don't be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs. gov.

Links:

Information Center: Form 990-N (e-Postcard)

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