New Form 990 Phased in for Smaller EOs

Smaller exempt organizations received transition relief as the IRS released its revamped Form 990, Return of Organization Exempt From Income Tax, for tax years 2008 and following. Organizations with gross receipts under $1 million or total assets under $2.5 million will be allowed to use Form 990-EZ for tax year 2008. The short form is four pages, as opposed to 11 pages plus applicable schedules for the long form. The limit falls in stages to $200,000 in gross receipts and $500,000 in total assets for tax years beginning with 2010. Still, that’s double the cutoff for the 2007 tax year. Also for 2010, still-smaller organizations will double their limit from the 2007 amount for eligibility to file by e-postcard (Form 990-N), to $50,000 in gross receipts.