The IRS today issued guidance (Revenue Procedure 2011-15) that will allow more tax-exempt organizations to file the simplified e-Postcard rather than the Form 990-EZ or the standard Form 990.
For tax years beginning on or after January 1, 2010, most tax-exempt organizations whose gross annual receipts are normally $50,000 or less will be eligible to file the e-Postcard. Previously, the threshold was set at $25,000 or less. Supporting organizations of any size are still not eligible to file the Form 990-N. So, for the 2010 tax year, the new filing requirements are as follows:
2010 Tax Year and later
(Filed in 2011 and later)
Private Foundations of any size 990-PF
Gross Receipts Normally ≤ $50,000 990-N
Gross receipts < $200,000, and 990-EZ
Total assets < $500,000
Gross receipts ≥ $200,000, or 990
Total assets ≥ $500,000
Organizations eligible to file the e-Postcard or 990-EZ may choose to file a full Form 990. Organizations that elect to file the Form 990 must still file a complete return. An incomplete or partially completed Form 990 or Form 990-EZ will not satisfy the annual filing requirement. Also, you may be assessed a late filing penalty if you file Form 990 or Form 990-EZ late.
This is a wonderful development for small nonprofits and will go a long well to reducing their tax compliance burden. For more information, go to IRS.gov.
Ellis Carter is a nonprofit lawyer licensed to practice in Washington and Arizona. Ellis advises tax-exempt clients on federal tax matters nationwide.