Introduction to the 990 Postcard
The 990 postcard, also known as Form 990-N, is an annual information return that most small tax-exempt organizations must file with the IRS. The purpose of this form is to provide the IRS with basic information about the organization, such as its mission, activities, and financial data.
Filing the 990 postcard is a crucial step in maintaining tax-exempt status, as it demonstrates an organization's commitment to transparency and accountability. Failure to file the form can result in penalties and even revocation of tax-exempt status.
Eligibility to File the 990 Postcard
Not all nonprofit organizations are eligible to file the 990 postcard. Generally, organizations with annual gross receipts of $50,000 or less can file the 990-N. Organizations with gross receipts exceeding $50,000 must file the full Form 990 or Form 990-EZ, depending on their specific circumstances.
Additionally, certain types of organizations, such as churches and certain government entities, are exempt from filing the 990 postcard or any other form of annual information return.
Gathering Required Information
Before filing the 990 postcard, organizations must gather certain information, including their Employer Identification Number (EIN), legal name and address, and annual gross receipts. They must also have a valid email address, as the IRS will use this to send confirmation of the filing.
Organizations should also be prepared to provide a brief description of their mission and activities, as well as the name and address of a principal officer.
The Filing Process
The 990 postcard can be filed electronically through the IRS website. Organizations will need to create an account and follow the online instructions to complete the form. The filing process typically takes only a few minutes to complete.
Once the form is submitted, the IRS will send a confirmation email to the organization's designated email address. This confirmation serves as proof of filing and should be retained for the organization's records.
Consequences of Not Filing
Failure to file the 990 postcard can have serious consequences for a nonprofit organization. The IRS may impose penalties, and repeated failures to file can result in revocation of tax-exempt status.
Additionally, organizations that fail to file the 990 postcard may also be subject to state-level penalties and fines, and may face difficulties in obtaining grants or other funding.
Frequently Asked Questions
What is the deadline for filing the 990 postcard?
The deadline for filing the 990 postcard is the 15th day of the 5th month after the close of the organization's tax year.
Can I file the 990 postcard by mail?
No, the 990 postcard must be filed electronically through the IRS website.
What happens if I miss the filing deadline?
If you miss the filing deadline, you may be subject to penalties and fines, and your organization's tax-exempt status may be at risk.
Do I need to file the 990 postcard if my organization is newly formed?
Yes, all tax-exempt organizations, including newly formed ones, must file the 990 postcard or other annual information return, unless they are exempt.
Can I amend a previously filed 990 postcard?
Yes, you can amend a previously filed 990 postcard by filing a new form and checking the box indicating that it is an amended return.
How do I know if my organization is eligible to file the 990 postcard?
You can determine your organization's eligibility to file the 990 postcard by reviewing the IRS guidelines and considering your organization's annual gross receipts and other factors.