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

Form 990-N, also known as the Electronic Notice (e-Postcard), is a tax filing submitted by small tax-exempt organizations that are not required to file Form 990 or 990-EZ. This form is crucial for maintaining tax-exempt status with the IRS.

Key Features

Form 990-N is a straightforward electronic form that requires organizations to provide basic information such as contact details, confirmation of gross receipts of $50,000 or less, and a declaration that the organization’s annual gross receipts are normally $50,000 or less.

Filing Requirements

Small tax-exempt organizations, with annual gross receipts normally not exceeding $50,000, are required to file Form 990-N. Filing must be done annually, and the deadline is the 15th day of the 5th month after the close of the organization’s tax year.

Penalties for Non-Compliance

Failure to file Form 990-N can result in penalties. Organizations that fail to submit the e-Postcard for three consecutive years will automatically lose their tax-exempt status, which can have serious financial and operational implications.

Importance in Tax Compliance

Form 990-N plays a crucial role in ensuring transparency and accountability among small tax-exempt organizations. By filing this electronic notice, these entities demonstrate their compliance with IRS regulations and maintain their eligibility for tax-exempt status, which is vital for their operations and donor support.