The IRS Form 990-N, also called e-Postcard, is an annual electronic filing Form for small tax-exempt organizations that are not required to file either Form 990-EZ or Form 990. The form will be filed with the IRS, and the organization offers to provide the financial and operational details.
This tax Form offers basic information regarding the organization basic information and confirmation of the tax-exempt status of the organization. Also, an organization to report the total revenue it receives during the tax year and the total expenses.
Understanding of 990-N Tax-exempt for organizations:
Even tax-exempt organization has a requirement to report their taxes annually. Most small tax-exempt organizations with annual reporting requirements will submit Form 990-N. This Form 990-N is generally submitted electronically, and there is no paper format for these tax forms. Organizations not required to file Form 990 and 990-EZ can use Form 990-N or e-postcards to show their tax performance with the IRS.
Who should file Form 990-N?
Small tax-exempt organizations are eligible to file Form 990-N to satisfy their annual reporting requirements if their annual gross receipts are less than or equal to $50,000. Gross receipts are the total amount the organization has received from all the sources, during the annual accounting period, without reducing expenses or costs.
An organization meets the less than $50,000 gross receipts criteria if it fulfills the following conditions.
- It has existed for one year or less, and the organization’s donors have pledged to give $75,000 or less during the first tax year.
- The organization has existed for less than three years and has averaged $60,000 or less in gross receipts during the first two tax years.
- The organization has existed for over 3 years and has an average gross receipt of $50,000 or less for the preceding 3 tax years.
Organizations that are not eligible for filing Form 990-N:
Some organizations are not eligible for filing e-postcard, even if their gross receipts are $50,000 or less. These organizations include,
- Private foundations
- Church-affiliated organizations
- Organizations with terminated tax-exempt status
- Political organizations
- Organizations with more than $50,000 in gross receipts
- Supporting organization
- Charitable trusts with non-exempt status.
- Organizations located out of the US
- Government entities.
These organizations should file different forms to satisfy their annual tax reporting requirement with the IRS. Also, a subordinate organization within a group with an exemption need not file Form 990-N separately, as the group to which it belongs satisfies the annual reporting requirements.
E-file Form 990-N With Tax2efile:
Register with Tax2efile to file form 990 N to IRS. Upon registration, the taxpayer must enter information, including EIN, address, organization name, and website address. Tax2efile software application minimizes errors to avoid rejections and securely submit to IRS your tax form.