Volume 8 Issue 2007

 
 


More than 650,000 small nonprofits — those with gross annual receipts of $25,000 or less — have been getting mail from the IRS. The news isn’t bad, but it is important. It’s about a new notice that these organizations must file.

Form 990-N

Tax-exempt organizations with gross receipts over $25,000 generally must file annual information returns (Form 990 or Form 990-EZ) with the IRS. In the past, organizations that didn’t meet that threshold didn’t have to provide information. But a recent tax law changed that. For tax years beginning after 2006, many small nonprofits will have to submit a Form 990-N, “Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ.”

Filling out the e-Postcard is simple and straightforward, says the IRS, and only basic information is required. But continued failure to file could lead to the loss of tax-exempt status.

 
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