New IRS Filing Requirements for Smaller Tax Exempt Organizations

By Larry Monaco, resident, US Youth Soccer

Up until recently, only larger charitable, tax-exempt organizations (organizations with annual gross receipts of more than $25,000), have had to file an annual reports — Form 990 or Form 990-EZ — with the Internal Revenue Service (IRS). However, tax-exempt organizations (generally those organizations having a section 501(c)(3) tax exemption) normally having annual gross receipts of $25,000 or less now have to file a new annual form with the IRS.

The new form is Form 990-N and is also called the “e-Postcard” because it is required to be filed electronically. A tax-exempt organization is required to file Form 990-N for tax years ending on or after Dec. 31, 2007. The Form must be filed not later than the 15th day of the fifth month after the close of the tax year for the organization. So if the organization’s tax year (or fiscal year) ends on September 30th of each year, then the organization must file its Form 990-N by not later than Feb. 15 of the following year. Below is the information from the IRS about the new filing requirements.

While the Form 990-N requirements apply to all tax-exempt organizations with the lesser amount of annual gross receipts, I would think that our smaller recreational members are most likely to be affected. So it is especially important that they receive this information. If an organization fails to file Form 990-N for three consecutive years, the organization automatically loses its tax-exempt status.

Click here (pdf) for more information on how to obtain and complete Form 990-N, courtesy of US Youth Soccer.