Understanding Form 990-N – Electronic Notice (e-Postcard) for Tax-Exempt Organizations

Form 990-N, also known as the Electronic Notice (e-Postcard), is an essential filing for tax-exempt organizations under the Internal Revenue Service (IRS). This form is used by small tax-exempt organizations to provide the IRS with basic information about their activities, ensuring transparency and compliance.

Key Features and Components

Form 990-N collects basic information such as the organization’s name, address, Employer Identification Number (EIN), tax year, confirmation of gross receipts falling below a certain threshold, and a brief description of the organization’s mission.

Filing Requirements

Tax-exempt organizations with gross receipts normally not exceeding $50,000 are required to file Form 990-N annually. Failure to file this form for three consecutive years can result in the revocation of the organization’s tax-exempt status.

Penalties for Non-Compliance

Non-compliance with the Form 990-N filing requirement can lead to significant penalties, including the loss of tax-exempt status, which has serious financial implications for the organization. It is crucial for tax-exempt organizations to ensure timely and accurate filing of this form to avoid penalties.

Importance in Tax Resolution and Financial Compliance

Form 990-N plays a vital role in maintaining the transparency and accountability of tax-exempt organizations. By filing this form accurately and on time, organizations demonstrate their compliance with IRS regulations and ensure the continuation of their tax-exempt status. Additionally, this form helps the IRS and the public track the activities and finances of these organizations, contributing to overall financial compliance and integrity.