Category Archives: IRS filing requirements

The Requirement for Small Nonprofits to File IRS Form 990-N

It is important to keep in mind that there are filing requirements that apply to nonprofit corporations with revenue of not more than $50,000.00.  Such organizations are required to file a IRS Form 990-N e-postcard.  As the IRS previously stated:

“The Pension Protection Act of 2006 made two important changes affecting tax-exempt organizations, effective the beginning of 2007. First, it mandated that all tax-exempt organizations, other than churches and church-related organizations, must file an annual return with the IRS. The Form 990-N was created for small tax-exempt organizations that had not previously had a filing requirement. Second, the law also required that any tax-exempt organization that fails to file for three consecutive years automatically loses its federal tax-exempt status. The IRS conducted an extensive outreach effort about this new legal requirement but, even so, many organizations have not filed returns on time.” 

“If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.”

Internal Revenue Services Bulletin: 2011-25 (June 20, 2011), Transitional Relief Under Internal Revenue Code Section 6033(j)For Small Organizations.

It is critical that nonprofit entities with revenue under $50,000.00 comply with this requirement.   

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