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Tax & AccountingAugust 18, 2022

Form 990-N filers must use a new sign-in process to file their annual reports

Beginning August 1, 2022, smaller charities that are eligible and choose to file Form 990-N, Electronic Notice for Tax-Exempt Organizations (e-Postcard), must sign into the IRS modernized authentication platform using either their active IRS username or create an account with ID.me, the current IRS credential service provider.

Sign in options

When accessing the Form 990-N submission page, Form 990-N filers have three options:

Sign in with their active IRS username

Users with an active IRS username have the option to access the Form 990-N submission page using their existing IRS credentials, or they can choose to create a new account with ID.me.

Sign in with their existing ID.me account

Users with an ID.me account to access other IRS online services or from a state or federal agency can sign in using their existing ID.me account. 

Create a new ID.me account

Users without an active IRS username credential must register and sign in ID.me. 

ID.me account creation requires an email address and multifactor authentication. Form 990-N filers with an existing IRS username and register for an ID.me account must use the same email address.

For Form 990-N filing instructions, see Publication 5248, Form 990-N Electronic Filing System User Guide (PDF).

Who may file Form 990-N to satisfy their annual reporting requirement?

In general, exempt organizations have annual reporting requirements.

Most small tax-exempt organizations that have an annual reporting requirement can satisfy the requirements by submitting Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ. Form 990-N is submitted electronically; there are no paper forms.

An organization eligible to submit Form 990-N can instead choose to file Form 990 or Form 990-EZ to satisfy its annual reporting requirement.

Small tax-exempt organizations generally are eligible to file Form 990-N to satisfy their annual reporting requirement if their annual gross receipts are normally $50,000 or less.

  • Gross receipts are the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses.
  • Gross receipts are considered to be normally $50,000 or less if the organization:
  1. Has been in existence for one (1) year or less and received, or donors have pledged to give, $75,000 or less during its first tax year;
  2. Has been in existence between one (1) and three (3) years and averaged $60,000 or less in gross receipts during each of its first two tax years; and
  3. Is at least three (3) years old and averaged $50,000 or less in gross receipts for the immediately preceding three (3) tax years (including the year for which calculations are being made).

However, some organizations aren't eligible to use Form 990-N (e-Postcard) even if their gross receipts are normally $50,000 or less.  These organizations must file different forms instead to satisfy their annual reporting requirement.   

Submitting Form 990-N (e-Postcard)

Filing due date

Form 990-N is due every year by the 15th day of the 5th month after the close of an organization's tax year. The e-Postcard may not be filed until after the end of the tax year ends.

Late submissions

While there is no penalty assessment for filing Form 990-N late, organizations that fail to file required Forms 990, 990-EZ, or 990-N for three consecutive years will automatically lose their tax-exempt status. Revocation of the organization's tax-exempt status will happen on the filing due date of the third consecutively-missed year.

Filing Form 990 and 990-EZ

The filing process has not changed for organizations that file Form 990, Return of Organization Exempt from Income Tax, or Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

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Mark Friedlich
Vice President of US Affairs for Wolters Kluwer Tax & Accounting
Mark Friedlich, a CPA & tax lawyer, is the Vice President of US Affairs for Wolters Kluwer Tax & Accounting. He is a member of the U.S. Senate Finance Committee’s Chief Tax Counsel’s Advisory Board, advisor to 14 state taxing authorities, and has been a member of the American Bar Association’s Tax Section and AICPA’s Tax Section leadership teams. Prior to joining Wolters Kluwer he was a COO and Principal at PwC.

 

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