New Information Reporting for Exempt Organizations

As a reminder, the first Form 990-N "Electronic Notice (e-Postcard) for Tax-Exempt Organization Not Required to File Form 990 or 990-EZ" for calendar year end organizations with less than $25,000 of gross receipts are due on May 15, 2008.  An extension of time is not available for this filing requirement.  Exceptions to this reporting requirement consist of organizations that are included in a group return, private foundations required to file Form 990-PF, and section 509(a)(3) supporting organization required to file Form 990 or Form 990-EZ.  Also, this filing requirement does not apply to churches, their integrated auxiliaries, and conventions or associations of churches.

Information to be reported on the e-Postcard includes legal name of the organization, mailing address, any other names used, a web address if one exists, the name and address of a principal officer and a statement confirming the organization's annual gross receipts are normally $25,000 or less.

Since the new reporting requirement is simple and straightforward, the IRS cautions organizations to not ignore it.  Any organization failing to file the Form 990-N for three consecutive years automatically results in losing its tax-exempt status.  In order to regain exempt status, the organization will have to reapply for recognition as a tax-exempt organization.

To ease the electronic filing burden, the IRS has developed a free reporting system for the e-Postcard and an application to make the information available to the public on its website, www.IRS.gov.