Form 990-N basics
Who must file Form 990-N?
Most small tax-exempt organizations whose gross receipts are normally $50,000 or less must file Form 990-N every year. That includes groups that never applied for exemption and groups whose application is still pending. You don't file it if your parent organization's group return covers you, or if you're a church.
Who has to file the e-Postcard?
The IRS says that most small tax-exempt organizations with gross receipts normally $50,000 or less must file it (IRS). Gross receipts are everything you took in, before expenses. "Normally" is an average; see what normally $50,000 or less means.
It's an annual requirement: you file every year, even a quiet one.
We never applied for tax exemption. Do we still file?
Often, yes. Some organizations don't have to apply but still have a 990-N requirement. The IRS names two examples: a 501(c)(3) organization whose gross receipts are normally $5,000 or less, and organizations exempt under other sections, such as social clubs under 501(c)(7) (IRS).
Because the IRS may not have you on file as a 990-N filer, an officer should first call Customer Account Services at 877-829-5500 and ask for the organization to be set up to file Form 990-N.
Our application is still pending. Do we file?
Yes. An officer calls 877-829-5500 first and asks to be set up to file Form 990-N (IRS). Allow about six weeks for the IRS to update its records. There's no late penalty for an e-Postcard, so the wait won't cost you anything.
We're a chapter of a national organization
That depends on whether your national files a group return that includes you:
- You're on the group return: you don't file a 990-N. The group return covers you.
- You're not on it: you file your own 990-N (or a 990-EZ or 990), like any other organization of your size.
- Not sure? Ask your national office.
If your parent left you off its list of subordinates, the IRS won't recognize you as part of the group and you won't be able to file the e-Postcard. The IRS's fix is for the parent to ask it to update its records, then allow six weeks (IRS).
Who can't use the 990-N, even when small?
These organizations file a different return whatever their size (IRS):
- Private foundations file Form 990-PF.
- Most 509(a)(3) supporting organizations file Form 990 or 990-EZ. The exceptions are integrated auxiliaries of churches, the exclusively religious activities of religious orders, and organizations with gross receipts normally $5,000 or less that support a 501(c)(3) religious organization.
- Section 527 political organizations that must file an annual return file Form 990 or 990-EZ.
And any organization with gross receipts normally over $50,000 files Form 990-EZ or 990. See 990-N vs 990-EZ.
Who doesn't file an annual return at all?
Some organizations have no annual filing requirement, including churches, their integrated auxiliaries and conventions or associations of churches (IRS). If you're not sure which applies to you, the Status Checker shows which return the IRS expects from your EIN.
See which return the IRS expects from your EIN
What if we don't file?
There's no penalty for a late e-Postcard. But an organization that doesn't file for three years in a row loses its tax-exempt status automatically, on the third year's due date (IRS). See two years behind if that's close.