Electronic Filing Requirement for Small Orgs – A Q&A

The Nonprofit Law Blog has posted a Q&A about Form 990-N, which small tax-exempt organizations that were previously not required to file may be required to file electronically starting in 2008 or risk losing their tax-exempt status, according to the IRS.

From the IRS's Web site:

Small tax-exempt organizations, whose gross receipts are normally $25,000 or less, are not required to file Form 990, Return of Organization Exempt From Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt from Income Tax. With the enactment of the Pension Protection Act of 2006 (PPA), these small tax-exempt organizations will now be required to file electronically Form 990-N, also known as the e-Postcard, with the IRS annually. Exceptions to this requirement include organizations that are included in a group return, private foundations required to file Form 990-PF, and section 509(a)(3) supporting organizations required to file Form 990 or Form 990-EZ. In addition, this filing requirement does not apply to churches, their integrated auxiliaries, and conventions or associations of churches.