How would the redesigned form affect filing requirements for small nonprofits and other tax-exempt organizations?
Beginning in 2008, nonprofits with less than $25,000 in annual gross receipts will be required to file an e-Postcard (Form 990-N) every year. The e-Postcard will not require nonprofits to report on financial, compensation, or governance information. The form would require nonprofits to identify the name and address of a principal officer, but it is unclear whether this address would need to be a home address. Nonprofits would lose their tax-exempt status if they don’t file an e-Postcard for three consecutive years. The IRS has begun notifying small nonprofits of this new reporting requirement, but it is likely that the IRS does not have current addresses for many small nonprofits that haven’t had to file the Form 990 in the past. Therefore, it will be important for unrelated agencies and organizations to spread news of this requirement to small nonprofits in their networks. Along with the new e-Postcard filing requirements, the IRS is considering making several changes to the annual fi
