The Internal Revenue Service issued guidance Thursday that will allow more small tax-exempt organizations to file a simpler tax form containing less information than they would have been required to file previously.
Small nonprofits may be able to shift over to the simpler Form 990-N, also known as an e-Postcard, for their 2010 annual information reporting, if they receive less than $50,000 a year.
A tax-exempt organization’s annual gross receipts or total assets are used to determine which of the three versions of Form 990 it is required to file. IRS.gov contains
Second, it required all supporting organizations, regardless of their size, to file the standard Form 990 or Form 990-EZ. Finally, the law specifies that any tax-exempt organization that fails to file for three consecutive years automatically loses its federal tax-exempt status.
Any tax-exempt organization that has not yet complied with these new requirements should do so immediately. If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.