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

 

SPONSORED REPORT

8 accounting and auditing issues you can’t afford to ignore

Download this sponsored report for an overview of some of the most important developments accountants and auditors are facing today.

DOWNLOAD

Filing season quick guide — Tax year 2014

Tax season started Jan. 20. Download our “quick guide,” a printable card that contains dollar thresholds, tax tables, standard amounts, credits, and deductions to keep at your fingertips during tax season.

TAX NEWS

Expired tax provisions extended for 2014

President Barack Obama signed legislation that retroactively extended more than 50 expired tax provisions for 2014, allowing taxpayers to take advantage of a host of tax incentives during this filing season.