Do you know that most of the small nonprofit businesses must file Form 990-N (e-Postcard)? Prior 2007 all nonprofits having annual gross receipts below $25000 weren’t required to make any yearly filings with the IRS, however, it changed in 2008. In the beginning of 2008, IRS introduced a new guideline stating that all small nonprofit organizations must file the Form 990-N.
IRS was deeply concerned over the fact whether most of the small nonprofits were updating their new business address and other key information, which made the Congress file a resolution making it mandatory to file the Form 990-N. In addition, IRS had doubts that thousands of small nonprofits have been dissolved or closed down without informing them.
With the Form 990-N, IRS can easily maintain the up-to-date database of the primary and required information related to the active non-profit agencies as well as those which have been dissolved. Not only this will assist IRS in meeting the administrative goals, it will even come in handy for individuals or donors who want to make contributions and ensure that it is going to a recognized nonprofit agency.
Not all nonprofits are required to file e-postcard. There is a certain criterion that needs to be satisfied to file this form and that is gross receipts. If the gross receipts of a nonprofit are normally under $50,000, then it must file the 990-N form. Even if the gross receipts averaged to 50,000 or less in the prior three successive tax years, including the year when the returns are filed, you still need to file the 990-N form.
It is easy and simple to file the 990-N online only if you are choosing epostcard990n.com. You can e-file 990-N in 3 steps. Enter EIN, Review summary, & transmit it to the IRS. You can also print and download your accepted forms.
When you are e-filing your Form 990-N using epostcard990n.com you will be notified right away if your form was accepted or rejected. If rejected, the reason will be provided by mail as well as from the application. This ensures that you can make the correction immediately and retransmit it again at no extra cost.
Another method is using the services of IRS. Login to the IRS gov site and reading the given instructions and clicking the link that directs to the form. Once the form is loaded, you can use your EIN (Employer Identification Number) to start e-filing.
As per the IRS rules and regulations, you need to e-file the 990-N form each year by the 15th day of the 5th month, just after the close of the tax year. Now once the e-postcard has been filed, IRS will send a notification stating whether it has rejected or accepted the form. If it is rejected, there will be instructions on what needs to be done next.
The following are some of the reasons on why 990-N can be rejected -
It is not the end of the road if you lose your tax-exempt status. You can still re-apply for federal tax exemption. So, it means that you need to file IRS Form 1023 again and even pay a hefty filing fee. Now, this is something that you really need to avoid as you will again need to go over the unnecessary paperwork, giving you a headache.
Frankly, it is better if you continue filing your 990-N forms each year and be in compliant with the IRS rules and regulation. Assisting you in this is e-postcard 990-N who will ensure that you never delay or make errors in your filing.