The IRS announced July 12 that it began mailing educational letters this month to more than 650,000 small tax-exempt organizations that may be required to submit a new annual notice, Form 990-N, “Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ.” IRS expects to mail the letters over a period of several months, finishing in December 2007.
With the enactment of the Pension Protection Act of 2006, most small tax-exempt organizations are now required to submit the e-postcard. Previously, tax-exempt organizations with gross receipts of $25,000 or less were not required to submit information returns. Under the new law, any organization that fails to meet its annual reporting requirement for three consecutive years automatically loses its tax-exempt status. Read the press release.
