James Chestnut & Associates, Inc - Clergy, Church & Nonprofit Consultants

Okay Lets File Your ePostCard!

If your nonprofit organization had annual income that was less than $25,000 then you must file an annual electronic notice or ePostCard (Form 990-N). The purpose of the form is to notify the Internal Revenue Service (IRS) that your organization is still in existence and operating as was described in your exemption application.

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Frequently Asked Questions

If our organization files Form 990 or 990-EZ, do we also have to file Form 990-N?

No! Do not file Form 990-N if you are filing Form 990 or Form 990-EZ.

What information will my organization have to provide to the IRS on Form 990-N?

Section 6033(i)(1) states that Form 990-N shall provide:

	The legal name of the organization.
	Any name under which the organization operates or does business.
	The organizations mailing address and web site address (if any).
	The organization's taxpayer identification number.
	The name and address of a principal officer.
	Evidence of the continuing basis for the organization's exemption from filing Form 990 / 990-EZ.
	Any other information necessary to process the return (such as the tax period for which the notice is being submitted).

When do I have to submit Form 990-N?

Form 990-N has the same due date as form 990 and Form 990-EZ, which must be filed on or before the 15th day of the 5th month following the end of the tax year for which the notification is being submitted. If your organization's tax year ends on December 31st, Form 990-N must be submitted on or before May 15th of the following year. If your organization has a June 30 year end, Form 990-N is due November 15th. I am not aware of any provision for an extension of time to submit Form 990-N.

How does our organization show that it continues to be exempt from Form 990 / 990-EZ filing requirements?

IRC Section 6001 requires that all organizations maintain records. These records will provide evidence of the continuing basis for the organization's exemption from Form 990 / 990-EZ filing requirements. In other words, your accounting records will prove that your organization's gross receipts are below the $25,000 filing threshhold.

Our organization is small, but we have unrelated business income and we file a Form 990-T every year. Does this mean we don't have to file Form 990-N?

Filing Form 990-T does not relieve the organization from the requirement to submit Form 990-N.

Is the information we provide about our organization on Form 990-N open to public inspection, just like Form 990?

Yes, the Form 990-N is subject to the public disclosure and inspection requirements of IRC section 6104.

What are the penalties for not submitting Form 990-N?

Section 6652(c)(1)(E) of the Pension Protection Act of 2006 provides that there is no monetary penalty for failure to submit Form 990-N. However, if your organization fails to submit Form 990-N for 3 years in a row, the penalty is AUTOMATIC REVOCATION of your tax exempt status!!!!! The revocation is effective beginning the date the IRS determines was the last day the organization could have timely filed the third required Form 990-N.

If our tax exempt status is revoked for not filing Form 990-N for three consecutive years, can we get it back?

Any organization whose tax-exempt status is revoked for this reason must apply to the IRS using Form 1023 or Form 1024 (whichever is applicable) in order to obtain reinstatement regardless of whether such organization was originally required to make an application for tax-exempt status. If, upon application for reinstatement of tax-exempt status, an organization can show to the IRS that there was reasonable cause for the failure to submit Form 990-N as required, the IRS may, at its discretion, reinstate the organization's tax exempt status RETROACTIVE to the date of revocation.

What organizations are exempt from the Form 990-N submission requirements?

The following types of organizations do not have to submit Form 990-N:

	Organizations that are filing Form 990-EZ or Form 990.
	An organization covered under a group return.
	A private foundation that is required to file Form 990-PF
	A church, an interchurch organization of local units of a church, a convention or association of churches, or an integrated auxiliary of a church.
	An exclusively religious activity of any religious order.
	A mission society sponsored by or affiliated with one or more churches or church denominations, more than half of the activities of which are conducted in, or directed at persons in, foreign countries.
	An educational organization, below college level, that is a publicly supported charity that has a program of a general academic nature, and that is affiliated with a church or operated by a religious order.
	A state institution, the income of which is excluded from gross income under section 115(a).
	An organization described in section 501(c)(1), or an organization that is a governmental unit or an affiliate of a governmental unit exempt from Federal income tax under section 501(a) as described in Rev. Proc. 95-48.
	A black lung trust required to file Form 990-BL.