IRS Allows More Small Exempt Organizations to File E-Postcard

January 18, 2011

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.

 

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