Nonprofit organizations play a pivotal role in our society by addressing various needs and providing essential services. To ensure transparency and accountability, the IRS requires these organizations to file certain informational tax returns.
Form 990-N (e-Postcard) is a simplified version of the annual information return that small tax-exempt organizations are required to file. This article provides a detailed understanding of Form 990-N (e-Postcard), including its purpose, eligibility criteria, due dates, penalties for late filing, instructions, and the filing process.
What is Form 990-N (e-Postcard)?
Form 990-N (e-Postcard) is an e-filing option for small tax-exempt organizations that have gross receipts of $50,000 or less in a tax year. It allows them to fulfill their annual reporting requirements with the IRS easily. The form requires only basic information and must be filed annually to maintain their tax-exempt status.
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Who Must File Form 990-N (e-Postcard)?
Most small tax-exempt organizations, whose gross receipts (annual income) are usually $50,000 or less, are required to file Form 990-N, which is an electronic notice (also known as an e-Postcard). This form is for organizations that are not required to file Form 990 or 990-EZ (which are for larger or more complex organizations).
Tips : Gross receipts refer to the total income an organization earns during its financial year. It includes all money received from various sources (such as donations, grants, sales, etc.), before any expenses (like operational costs, salaries, or bills) are deducted.
An organization’s Gross receipts are $50,000 or less if the organization:
If the organization is 1 year old or less: It qualifies if it received, or if donors pledged to give, $75,000 or less during its first year.
If the organization has been 1 to 3 years: It qualifies if it averaged $60,000 or less in gross receipts during its first two years.
If the organization is 3 years: It qualifies if it averaged $50,000 or less in gross receipts over the last three years, including the current year.
Due Date to File Form 990-N (e-Postcard)
The due date for filing Form 990-N (e-Postcard) is the 15th day of the 5th month after the close of the organization's tax year. For organizations following a calendar year (January 1 - December 31), the due date is May 15th.
For example, if an organization's tax year ends on June 30th, the e-Postcard would be due on November 15th.
Note: If the due date falls on a Saturday, Sunday or a legal holiday, the due date is the next business day.
Penalty for Late Filing of Form 990-N (e-Postcard)
Failing to file Form 990-N (e-Postcard) can have consequences for an organization's tax-exempt status. If an eligible organization fails to file the e-Postcard for three consecutive years, its tax-exempt status may be automatically revoked. It is crucial for organizations to stay compliant with the filing requirements to maintain their tax-exempt status and avoid potential penalties.
E-file Form 990-N (e-Postcard) with TaxZerone
Complete your Form 990-N filing with TaxZerone (free for the current tax year) and stay exempt.
Information required to file Form 990-N (e-Postcard)
Form 990-N (e-Postcard) is a simple form that collects key information about the organization, including:
Organization's Employer identification number (EIN)
Tax year (calendar or fiscal filer)
Legal name and mailing address
Any other names the organization uses
Name and address of a principal officer
Website address (if available)
Confirmation that the organization's annual gross receipts are $50,000 or less
A statement that the organization has terminated or is going out of business (if applicable)
How to e-file Form 990-N (e-Postcard) with TaxZerone?
Filing Form 990-N (e-Postcard) with TaxZerone is a simple and straightforward process:
You will receive a notification as soon as the IRS processes and approves your return.
