A Complete Guide to Completing Form 990-N (e-postcard)
Navigating nonprofit tax filing can be a complex task, requiring a meticulous approach and a wealth of specific information. From documenting annual contributions to detailing program services and various financial transactions, attention to detail is paramount.
While the standard 990 return necessitates a deep dive into intricate financial data, smaller nonprofits opting for the simplified Form 990-N (e-postcard) can streamline their reporting process significantly!
Here is a closer look at the process and information needed to complete the tiniest of the 990 series returns.
Form 990-N – What is it?
Form 990-N, also known as an e-postcard, is the shortest version of a 990 return. As mentioned earlier, this type of 990 is designed exclusively for nonprofits that are smaller in terms of financial status.
Generally, Form 990-N applies to nonprofits with total gross receipts of $50,000 or less during the corresponding tax year. Any nonprofit that meets this criteria can simply complete and transmit an e-postcard instead of filing the longer versions of 990 (Form 990-EZ or 990).
Information Reported on Form 990-N
Unlike the other versions of 990, this one doesn’t require you to report much information about your organization. All you need to do is report the following pieces of information:
- Name, EIN, and Address of the organization
- The accounting period followed by the organization
- Organization’s website and other names (if any)
- Details of the principal officer
- Confirmation that the organization’s gross receipts are $50,000 or less
While the other versions of 990 require a few additional documents in the form of Schedules, 990-N doesn’t require any such additional attachments.
Are Small Nonprofits Limited to Filing 990-N?
No! Any nonprofit that is eligible to file 990-N can choose to file the other versions, i.e., Form 990 or 990-EZ, voluntarily to bolster their organization’s financial transparency.
On the other hand, nonprofits that have higher gross receipts cannot choose to file a 990-N instead of 990 or 990-EZ.
When is Form 990-N Due?
All 990 forms share the same deadlines, regardless of their complexity. Like the other 990 series returns, the IRS Form 990-N is due by the 15th day of the 5th month after your accounting period ends. So, if your organization follows the calendar tax year, your 990-N deadline for the 2023 tax year is May 15, 2024.
Notably, there is neither an extension nor a penalty. However, if your organization fails to file a 990-N for three consecutive years, it may lose its tax-exempt status.
File Your 990-N in 3 Simple Steps
Tax990 simplifies the process of Filing Form 990-N, reducing it to just 3 steps! Here’s how to complete and transmit 990-N to the IRS:
Step 1: Search Your Organization’s EIN
Enter your organization’s Employer Identification Number to pull up the details from the IRS registry in a matter of minutes.
Step 2: Select Tax Year
Our software supports the e-filing of 990-N for the current and prior tax years. His includes 2021, 2022, and 2023. Just choose the applicable tax year for which you are filing.
Step 3: Review and Transmit to the IRS
Once completed, review the form summary and transmit your e-postcard to the IRS.
With Tax990, you can file unlimited returns from a single account. You will always be able to view your IRS status instantly, and if your form happens to be rejected, you can easily correct and re-transmit it for free.
What are you waiting for? Begin your journey to IRS compliance today. Create your free account to check out all that Tax990 offers!
