Requirements to File Small Tax Exempt Return Form 990N Online

The ‘e-postcard’ is a means of being tax-exempt for all small non-profit organizations. With the tax exemption raised from $25,000 to $50,000, the IRS 990N Form can benefit non-profit organizations greatly. 

The ‘e-Postcard’ that is often talked about refers to the IRS 990-N Form for tax exemption purposes for small non-profit organizations. Up until the year 2007, all small non-profit organizations did not have to file taxes if their annual receipts were below $25,000. This was amended with the introduction of the e-postcard Form 990-n in 2008 and the cap was raised to $50,000 specifically for small non-profit organizations. The ruling was passed by Congress after countless small organizations were not keeping their IRS records up to date. This move encouraged the 990N Postcard filing of the tax Form and also started helping the IRS keep track of all the non-profit organizations’ business dealings and ensure their database stays updated at all times.


Who is required to file the Tax Form 990N?

All nonprofit organizations whose yearly gross receipts are below $50,000 on an average basis in the previous three tax years, including the year for which the tax is filed are required to file e-Postcard Form 990-N

Filing the Form 990N

990N postcard filing is a simple process but it requires a lot of information. The IRS does not consider the postcard to be a tax return technically but it is one of the essential IRS Forms for getting a tax exemption status. The filing process ideally takes less than 15 minutes if you have a decent internet connection and you do not have the option to pay it through the post as physical copies of the IRS Form 990N are not accepted. This is why the Form is known as the ‘e-Postcard’ by the IRS. 

What if I do not file Form 990-N?

The IRS has been cracking down on organizations that have not been filing Form 990-N for three consecutive years. If you do not file the Form for any single year you will receive a reminder notice from the IRS and if you do not comply with them for three years your organization will automatically lose the tax-exempt status without any further notice from the Internal Revenue Services. For example, if you missed your due date for 2018 on May 15 you will lose your tax-exempt status on May 15, 2021. You will need to file for the tax-exempt status all over again and your organization will need to be bear the brunt of the hefty filing fees and you would also need to file Form 1023 again.

If you want any help simply contact our US customer support team, our team will lead your entire 990 Form filing process with simple steps through or call us at 703.229.3026 or live chat (24/7 available).