The more tax tips you can get, the easier your treasurer job will be, right? How does the word e-Postcard sound, does it sound easier than EZ? If you are a treasurer for a small tax-exempt organization, you are probably familiar with the Form 990, if not-check out this refresher. Basically, the 990 is a form that all tax-exempt organizations need to file. This form reports to the IRS the amount of assets and expenses within your organization.
Who Can File the 990 N?
There are special 990 forms depending on the size of the organization. If your group’s gross income is less than $50,000 then you are eligible to file a simple 990-N online. The 990 N is actually considered an e-Postcard. There is no penalty for late filing the 990-N, but you will receive a reminder. However, it is important to note, if you fail for file for three years in a row, you will lose your tax-exempt status.
What You Need to File:
You simply need eight pieces of information to file the 990-N:
- Employer Identification Number or (EIN) also known as a Taxpayer Identification Number (TIN)
- Tax Year
- Legal name and mailing address
- Any other names the organization uses
- Name and address of a principal officer
- Web site address (if available)
- Confirmation that the organization’s annual gross receipts are $50,000 or less
- If applicable, a statement that the organization has terminated or is terminating, (going out of business)
The 990-N e-Postcard is due every year by the 15th day of the 5th month after the close of your tax year. For example, if your tax year ends on December 31st, you would have until May 15th of the following year to file the e-Postcard. You may not file the e-Postcard until after your tax year ends.
The 990-N is not mandatory, you may choose to file a 990 EZ or 990 form instead. Some accounting software systems will support the 990 EZ form. Also note that the 990-N is completely electronic as there is no paper form. Annual filing of some sort of 990 form is an important task as this is public information and oftentimes accessed by interested parties, stakeholders, even grant-makers.
There are a number of organizations that are exempt from filing the 990-N, Churches are an example. Make sure to check the www.irs.gov website to confirm eligibility. Thresholds and due dates are also subject to change so make sure to check the IRS website or speak with a local tax expert.