Friday, September 21, 2007

New FAQ's on Form 990-N, the "e-postcard"

The IRS has posted an update as to the frequently asked questions that surround the redesign and the changes surrounding the new Form 990-N. Form 990-N is an information return that small tax-exempt organizations must file with the Service.

Following the enactment of the Pension Protection Act of 2006, exempt organizations whose gross receipts are usually $25,000 or less are required to file with the IRS a Form 990-N information return, also referred to as an "e-postcard." The e-postcard, according to one of the questions posted to the IRS site, asks for basic identifying information such as the organization's legal name, address, and employee identification number, as well as the name and address of its principal officer.

The IRS directs small exempt organizations to file an e-postcard "every year by the 15th day of the fifth month after the close of [their] tax period." The IRS has indicated that it is working on developing a "simple," Internet-based filing system for the e-postcards so organizations that do not own a computer can complete their e-postcards off-site. Also, because the system will be Internet-based, organizations will not need to acquire software to file the form, according to the IRS. (You can see all 14 frequently asked questions here.

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