Form 990-N Now in Effect

The new Form 990-N Electronic Notice (e-Postcard) is now available online for filing and public review. Beginning in 2008, small nonprofits that had been exempt from filing the Form 990 because they have annual gross receipts of $25,000 or less are required to file a new Form 990-N.

The IRS is asking nonprofit organizations, volunteers, and tax practitioners to help spread the word to small organizations about the new reporting requirement.

This filing requirement does not apply to churches, their integrated auxiliaries, and conventions or associations of churches.Failure to file the notice for three consecutive years will result in revocation of tax-exempt status.   The e-Postcard is due May 15, 2008 for organizations whose tax period ends on December 31, 2007. Read more about this new notice on the IRS website.

This new return, which was enacted as part of the Pension Protection Act of 2006, requires small nonprofits to provide the following 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 organizations annual tax period;
• a statement that the organization’s annual gross receipts are still less than $25,000, and
• and upon termination, notice of that termination.

Searchable Database
The public also now has access to the information filed on the Form 990-N. The data is searchable by name of the organization, location, or by employer identification number. Form 990-N Search

Last updated: February 29, 2008