IRS Allows More Small Exempt Organizations to File E-Postcard


The IRS has raised the gross receipts threshold for Form 990, Return of Organization Exempt From Income Tax , from $25,000 to $50,000, allowing more tax-exempt organizations to avoid filing a full Form 990 or 990-EZ ( Revenue Procedure 2011-15 ).

 

Tax-exempt organizations are generally required to file either a Form 990 or the shorter Form 990-EZ annually. Under IRC § 6033, organizations with annual gross receipts of less than $5,000 are exempt from the filing requirement, and the IRS has authority to excuse larger organizations from the filing requirement, at its discretion.

 

The IRS previously had set the Form 990 gross receipts threshold at $25,000 for section 501(c)(3) organizations other than private foundations, but has now raised the threshold to $50,000, effective for tax years beginning on or after Jan. 1, 2010.

 

Small tax-exempt organizations that are not required to file Form 990 or 990-EZ under the new $50,000 threshold must generally file Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ, instead.

 

More from the JofA:

 

 Find us on Facebook      Follow us on Twitter

 

CHECKLIST

Boost your LinkedIn profile

LinkedIn is No. 1 when it comes to business-related social media. Be prepared when an unexpected career opportunity arises by following these tips for keeping your LinkedIn page current.

PRACTICE MANAGEMENT

Millennial women: How to woo a new generation of employees

Ambitious, educated, and tech-savvy, Millennial women make ideal employees. Win them over with flexibility and clear paths to advancement.

PROFESSIONAL ISSUES

Belicia Cespedes: A CPA at 17

Through hard work and determination, Belicia Cespedes earned the credential before she was even eligible to vote.