Beginning in the 2010 tax year, organizations with annual gross receipts less than $50,000 are required to file a Form 990-N Electronic Notice (e-Postcard), up from the previous threshold of $25,000. The Internal Revenue Service (IRS) has released updated guidance for small tax-exempt organizations on the expanded use of the e-Postcard.

Churches, their integrated auxiliaries, and conventions or associations of churches are exempt from this requirement. The e-Postcard is due by the 15th day of the fifth month after the close of the organization's tax year.  For example, the deadline for organizations whose tax period ends the previous December 31 is May 15.

Failure to File                                                                                                   Beginning in 2007, any organization fails to file an information return (Form 990, Form 990-EZ, Form 990-N) for three consecutive years will have its tax-exempt status automatically revoked. 

The IRS published a new toolkit September 10 that includes guidance and questions and answers for what will trigger a loss of tax exemption when a tax-exempt organization fails to file a return or notice with the service for three consecutive years. LEARN MORE.

Is My Organization in Danger of Losing Tax Exempt Status?                                       There are currently two primary resources to help determine whether a nonprofit you know is in danger of revocation:

• IRS list of organizations at risk
• Urban Institute's National Center for Charitable Statistics Database
  

About the Form 990-N:                                                                                               The 990-N must be filed electronically with the IRS by accessing http://epostcard.form990.org.  The Form asks for eight pieces of information:

• the organization’s legal name;
• any name under which it does business;
• mailing address and Internet website address (if any);
• employer identification number (EIN);
• the name and address of a principal officer;
• the organization's annual tax period;
• a statement that the organization’s annual gross receipts are still less than $50,000; and
• and upon termination, notice of that termination.

The 990-N Form is available to the public through a searchable database provided by the IRS.  For information about the Form, consult the IRS website.