Nonprofit Tax Reporting Gets Easier
The IRS has announced a change in the reporting requirements for small tax-exemption organizations. Beginning in 2007 (for tax year 2006), organizations with gross receipts of less than $25,000 were required to file a form 990-N (sometimes called an “e-Postcard”) with the IRS each year. Beginning in 2011 (meaning the 2010 tax year), the threshold for use of the e-Postcard has changed to gross receipts of $50,000 or less.
Some exceptions apply to the threshold. For example, supporting organizations must continue to file the form 990 (or 900-EZ). Additionally, a private foundation must still continue to file a form 990-PF. If your organization is not sure which reporting requirements apply, you should check with your tax professional: failure to comply with reporting requirements could result in a loss of tax-exempt status.
You can see Revenue Procedure 2011-15 for more details (downloads as a pdf).
