Who Can File the Form 990-N e-Postcard?

Form 990-N, also known as the e-Postcard, is an annual electronic notice filed with the Internal Revenue Service (IRS). It is designed for small tax-exempt organizations to satisfy their yearly reporting obligations and maintain their tax-exempt status. This filing is the simplest in the Form 990 series, intended to provide the IRS with basic information about the organization’s existence and continued operation.

Determining Your Filing Requirement

An organization’s eligibility to file Form 990-N primarily depends on its financial activity. To file, a small tax-exempt organization’s annual gross receipts must be “normally” $50,000 or less. The IRS uses a specific calculation to determine this based on the organization’s age.

An organization that has existed for one year or less qualifies if it received $75,000 or less in gross receipts during its first tax year. If it has been in existence for one to three years, it qualifies if it averaged $60,000 or less during its first two tax years. For organizations that are at least three years old, they qualify if they averaged $50,000 or less in gross receipts over the three most recent tax years.

Gross receipts are the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses. This threshold simplifies the reporting process for organizations with limited financial resources.

Certain organizations are not permitted to file the e-Postcard, regardless of how low their gross receipts are. This includes private foundations, which must file Form 990-PF, and section 509 supporting organizations. Political organizations under section 527 are also required to file a full Form 990 or 990-EZ. An organization that is part of a group exemption and is included in a group return filed by its central organization does not need to file a separate Form 990-N. If an eligible organization chooses, it may file a complete Form 990 or 990-EZ instead of the e-Postcard.

Information Required for the e-Postcard

Before beginning the filing process, an organization must gather eight specific pieces of information. The required items are:

• The organization’s Employer Identification Number (EIN)
• The tax year for which the form is being filed
• The legal name and mailing address of the organization
• Any “doing business as” (DBA) names
• The name and address of a principal officer
• The organization’s website address, if it has one
• Confirmation that the organization’s annual gross receipts are $50,000 or less
• A statement of termination if the organization has ceased operations

The Electronic Filing Process

The Form 990-N must be filed electronically through the IRS website; there are no paper forms available for this filing. The process begins by navigating to the “Form 990-N Electronic Filing System (e-Postcard)” page on the IRS.gov website. The IRS uses a third-party provider to host the submission system, so filers will be directed to that provider’s portal to complete the form.

Once logged in, the user will enter the eight required pieces of information into the designated fields on the electronic form. It is important to review all entered data for accuracy before submission. After the information is entered and verified, the user submits the form electronically. Upon a successful submission, the filer should receive an email confirmation from the filing system.

Consequences of Non-Filing

Failure to file the Form 990-N for three consecutive years results in an automatic revocation of the organization’s tax-exempt status. This revocation occurs on the filing due date of the third year. While there is no monetary penalty for filing the e-Postcard late in any single year, the consequence of three consecutive missed filings is significant.

A revoked organization may be required to file income tax returns, such as Form 1120 or Form 1041, and pay applicable income taxes. Furthermore, contributions made to the organization will no longer be tax-deductible for donors, which can significantly impact fundraising efforts. An organization that has lost its status through this process must apply for reinstatement to have its tax-exempt status recognized again.