Form 990-N 2017 Instructions for Small Nonprofits

For small tax-exempt organizations, maintaining federal tax-exempt status depends on accurate and timely annual filings. The Internal Revenue Service (IRS) requires most small exempt organizations with annual gross receipts of $50,000 or less to submit Form 990-N, also known as the e-Postcard. This simple electronic form fulfills the organization’s annual reporting requirements and keeps its tax exemption active.

The Form 990-N e-Postcard must be filed electronically through the official IRS website. Unlike larger nonprofit organizations, small exempt organizations are not required to file the longer Form 990 or Form 990-EZ. This streamlined process makes annual compliance faster and more accessible, ensuring your organization remains listed in the IRS database of active and compliant entities.

Understanding the instructions on Form 990-N 2017 is the first step to filing accurately and avoiding future issues. With the right preparation and information, completing this online filing can be quick and stress-free. The following sections explain how to file Form 990-N correctly, meet your IRS deadlines, and maintain good standing as a recognized tax-exempt organization.

Understanding Form 990-N

The IRS designed Form 990-N as an electronic notice for small tax-exempt organizations that meet specific filing thresholds. This streamlined process simplifies compliance with annual reporting requirements for organizations with limited financial activity and straightforward operations.

Who Must File Form 990-N

Eligibility requirements: An organization must normally have gross receipts of $50,000 or less and not be a private foundation or a Section 509(a)(3) supporting organization.
Applicable organizations: Nonprofit organizations, community associations, and small charities often qualify to file Form 990-N rather than the longer versions of IRS Form 990.
IRS requirement: The IRS requires each eligible filer to submit this form annually, even if the organization had minimal or no activity during the tax year.
Filing frequency: The e-postcard must be filed annually by the due date, the 15th day of the fifth month after the tax year ends.

Organizations Exempt from Filing

Churches and affiliates: Churches, church schools, and related institutions are exempt because their income is excluded from general reporting under IRS regulations.
Governmental entities: Section 115 of the Internal Revenue Code exempts state or local institutions' income from filing requirements.
Foreign mission societies: Organizations conducting more than half of their activities outside the United States may be exempt from the filing requirement.
Private foundations: These organizations must file Form 990-PF instead of the e-Postcard, regardless of their annual gross receipts.

Supporting Organizations' Rules

Regulatory exceptions: Supporting organizations must verify whether they meet the exceptions listed in the applicable IRS Form 990-N 2017 instructions.
Compliance importance: Filing the proper form ensures accurate reporting and protects the organization’s tax-exempt status from automatic revocation.

What’s New for Tax Year 2017

For the 2017 tax year, the IRS maintained the same structure and filing procedures for the Form 990-N e-Postcard. However, certain technical updates improved accessibility for small nonprofit organizations filing electronically.

Continued Requirements

Electronic submission: The IRS requires that the e-Postcard be filed electronically, as no paper filing option is available for this form.
Gross receipts threshold: The gross receipts limit of $50,000 or less remains applicable to all small tax-exempt organizations.
No filing fee: There is no charge for submitting this electronic notice through the IRS website using the official e-filing system.
Timely filing: The due date continues to fall on the 15th day of the fifth month after the tax year ends, or the next business day if that date falls on a weekend or holiday.

Filing System Improvements

Enhanced security: The IRS introduced stronger verification for each IRS account, protecting sensitive organizational and financial information.
Simplified interface: The redesigned layout made it easier for nonprofit users to access, review, and complete their forms quickly and accurately.
Confirmation process: Each organization now receives an immediate confirmation statement upon successful e-filing, ensuring documentation of timely compliance.
System reliability: The updated portal improved load speeds and minimized downtime, allowing users to complete their e-file form submissions.

Step-by-Step Filing Instructions

Filing Form 990-N for the 2017 tax year is straightforward when completed through the official IRS online platform. Before you begin, ensure that your organization’s basic information is accurate and accessible. The following steps outline filing Form 990 correctly and on time.

Before You Begin: Preparation Checklist

Gather organizational details: You must have the legal name, mailing address, and employer identification number (EIN) ready.
Verify fiscal year dates: Determine whether your organization is a calendar-year or fiscal filer to enter your tax year's beginning and ending dates correctly.
Identify the principal officer: Confirm the current principal officer’s name, title, and address, which the IRS requires on the e-Postcard submission.
Collect contact details: To receive filing confirmations and account updates, the organization’s principal officer's website address and a valid email must be provided.
Check IRS access: Ensure your organization’s IRS account credentials are valid to access the electronic notice filing system through the IRS website.

Step 1: Access the IRS Electronic Filing System

To begin, navigate the IRS website and locate the section for exempt organizations. Select the e-Postcard filing page and click “Submit Form 990-N.” This step directs you to the online filing portal where you can sign in with your IRS account or create a new one if needed.

Step 2: Register Your Organization

First-time filers must register their organization in the IRS system. Enter your employer identification number, legal name, and mailing address as shown on your IRS records. Provide a current email address for confirmations. After verifying your information, create a secure password and complete the account registration.

Step 3: Complete the Form 990-N

Once registered, log in to access the e-file Form 990-N for the 2017 tax year. Enter your organization’s basic information, including its legal name, address, EIN, and principal officer details. Confirm your organization’s annual gross receipts and verify they are 50,000 or less to maintain eligibility.

Step 4: Review and Submit the E-Postcard

Before final submission, carefully review all data to ensure accuracy. Make corrections if needed. Confirm that the information is complete and accurate, then submit the e-Postcard. Save or print the confirmation statement for your records to prove your organization’s compliance with IRS filing requirements.

Step 5: Filing Tips and Common Errors

Use a desktop browser for e-filing, not a mobile device. Verify that the employer identification number, legal name, and mailing address match IRS records. Confirm the tax year and filing deadline; if the date falls on a holiday, file the next business day. Submit, save the confirmation, and retain the confirmation in the organization’s IRS account records for at least three consecutive years.

How to File Form 990-N (Electronic Filing Only)

All exempt organizations eligible to file Form 990-N must submit their electronic notice exclusively through the IRS website. The form cannot be mailed or faxed. This process ensures accuracy, security, and fast confirmation for small tax-exempt organizations, maintaining compliance with annual reporting requirements.

Electronic Filing Requirement

Mandatory process: The IRS requires that every eligible organization file Form 990-N electronically using the official online filing system.
No paper submission: Paper copies of the postcards are not accepted, ensuring consistent digital recordkeeping for exempt organizations.
IRS verification: Submitting through the IRS website allows automatic verification of your organization’s basic information and employer identification number.
Online access: Filers can access the e-filing portal by logging into their IRS account and selecting the “file form 990-N” option.

Filing Deadline and Due Date

Deadline schedule: Form 990-N is due on the 15th day of the fifth month after the tax year ends.
Calendar-year filers: Organizations operating on a calendar year must file by May 15 of the following year unless that date falls on a weekend or holiday.
Extension policy: No extension is available for Form 990-N, though late filing carries no monetary penalty.
Automatic revocation: Failure to file for three consecutive years results in automatic loss of tax-exempt status, which requires reapplication to the IRS.

Options for Organizations Without Internet Access

Public access locations: Nonprofit organizations without reliable internet can use computers at local libraries or community centers for online filing.
Assistance options: Volunteers or board members may complete the filing with proper authorization and access to the organization’s IRS account.
Professional help: Businesses or tax professionals experienced with exempt organizations can file electronically on behalf of small nonprofits for accuracy assurance.
Account requirement: Every filer must have an active IRS account to access the e-Postcard system and confirm electronic notice submission.

Payment and Fee Information

The IRS does not charge a fee to file Form 990-N. Every small tax-exempt organization can complete its e-Postcard submission for free through the IRS website. This ensures equal access for all exempt organizations, regardless of size or budget, as long as the form is filed electronically and the required information is complete.

No Filing Fee

Free submission: The IRS does not collect payment for the Form 990-N e-Postcard when filed electronically using the official IRS website.
No processing cost: Filing is free because the e-Postcard contains only basic information, and no additional schedules or statements are required.
Direct access: The organization’s IRS account provides direct access to the online filing system without requiring third-party payment or subscription services.
Confirmation page: Once filed, a confirmation appears instantly, verifying the organization’s compliance with annual reporting requirements.

Beware of Third-Party Services

Some websites charge fees for preparing the e-Postcard, but these services are unnecessary since the IRS provides a free platform. Always use the official IRS website to file Form 990-N, ensuring accurate data and secure handling of financial information. Fraudulent sites may request payment or personal details, risking identity theft or loss of tax-exempt status.

Required Information and Recordkeeping

Every small nonprofit organization must maintain accurate records to complete the e-Postcard correctly. The IRS requires only basic information, but consistency across consecutive years is essential to maintaining an organization’s tax-exempt status. Keeping accurate records simplifies future filings and reduces errors when entering information into the IRS e-filing system.

Required Information for Filing

Legal name and EIN: Use your organization’s legal name and employer identification number as registered with the IRS.
Mailing address: Confirm the organization’s current mailing address and update it on your IRS account if changes occurred during the tax year.
Principal officer details: Include the principal officer’s name, title, and business address, as this information must appear on every e-Postcard.
Website information: Provide the organization’s website address, or write “N/A” if none exists.
Tax year dates: Report your fiscal year's correct beginning and ending dates, ensuring accuracy for calendar-year or fiscal filer reporting.

Recordkeeping Requirements

Retention period: To demonstrate compliance with annual reporting requirements, maintain copies of each e-Postcard confirmation for at least three consecutive years.
Supporting documents: Keep all IRS correspondence, tax exemption letters, and financial information in organized files for easy access.
Accuracy verification: Regularly verify that the organization’s information in your IRS account remains current to avoid filing discrepancies.
Record review: Conduct an annual review before filing to confirm that data, such as address or officer changes, are properly updated.

Common Mistakes to Avoid

Accuracy in filing Form 990-N ensures an uninterrupted tax exemption. Errors often occur when organizations skip verification steps or fail to meet their filing deadline. Understanding the common mistakes helps small tax-exempt organizations maintain compliance and avoid unnecessary IRS correspondence.

EIN and Identification Errors

Incorrect number entry: Entering the wrong employer identification number prevents IRS validation and may delay the acceptance of your electronic notice.
Outdated information: Using a previous address or former principal officer information may cause discrepancies in your filing record.
Wrong form type: Filing Form 990 or 990-EZ instead of the e-Postcard may result in rejection if the organization qualifies as a small exempt filer.
Incomplete data: Missing website information or unverified fields can prevent the IRS system from completing the submission.

Filing Deadline Mistakes

Missed due date: Filing after the deadline can cause a gap in compliance, and failure to file for three consecutive years triggers automatic revocation.
Incorrect year selection: Choosing the wrong tax year or fiscal period can result in inaccurate reporting and possible re-filing.
Calendar miscalculation: Misreading the date when the tax year ends may lead to late filing or incorrect due date calculation.
Lack of reminders: Organizations that do not track deadlines risk filing late, especially when the date falls on weekends or holidays.

Technical or Browser Issues

Incompatible browser: Outdated web browsers or those with pop-up blockers can prevent the IRS form from loading correctly.
Internet instability: Unstable internet connections during filing may interrupt the process and cause data loss.
Email filtering: Confirmation emails may land in spam folders, so organizations should examine all folders after submission.
System timeout: Completing the form for too long without saving may result in session expiration, requiring the re-entry of all data.

Filing for Dormant or Zero-Activity Years

Even when an organization has no financial activity, the IRS still requires an annual e-Postcard. Dormant or temporarily inactive organizations must continue to meet their annual reporting requirements to preserve tax-exempt status and avoid automatic revocation.

Filing Requirement for Zero Activity

Mandatory filing: The IRS requires all eligible organizations, including those without income or expenses, to file Form 990-N annually.
Definition of dormancy: Dormant organizations had no program activity, income, or expenses during the tax year.
Purpose of filing: Filing the e-Postcard confirms the organization’s continued existence and eligibility for tax exemption.
IRS compliance check: Failure to file still counts as noncompliance even if the organization had no financial activity.

Filing Process for Dormant Organizations

Basic details only: Enter your organization’s legal name, mailing address, EIN, and principal officer information exactly as registered.
Zero activity entry: For annual gross receipts, indicate that the organization received 50,000 or less for the tax year.
Current year data: Ensure the year’s tax year dates are correctly listed, even if no financial information has changed.
Continued filing: Maintain consistent annual filings for consecutive years until dissolution or formal closure.

Dissolution Versus Dormancy

Permanent closure: If an organization dissolves, it must file a final Form 990, 990-EZ, or e-Postcard and mark it as the final return.
Asset distribution: Assets must be distributed according to the nonprofit’s governing documents or applicable state law.
Record retention: Keep final confirmation and dissolution statements for at least three years after the organization’s closure.
IRS notification: Notify the IRS in writing to confirm that the tax-exempt status has ended and all requirements are met.

First-Time Filer Guidance

New organizations often have questions during their first year of tax exemption. The process for first-time filers is nearly identical to that of returning organizations, but attention to detail is essential. Filing the e-Postcard accurately establishes a reliable IRS account record for future reporting.

Registration and Setup

Initial account creation: First-time filers must create an IRS account using their EIN, legal name, and mailing address.
Verification step: The IRS system verifies the organization’s eligibility and correctly lists it as exempt.
Contact accuracy: Provide a current email for notifications and confirmation of successful filing.
Security setup: Set up multi-factor authentication to protect your IRS account and the organization’s electronic records.

After Your First Filing

Confirmation receipt: Download and store the IRS confirmation page as proof of compliance.
Annual reminder: Set a digital calendar alert for your next filing date to maintain consistency in yearly reporting.
Record review: Verify your financial information and principal officer data annually before filing.
Good standing maintenance: Timely filings ensure your nonprofit organization remains recognized as an active tax-exempt entity.

Frequently Asked Questions

Do I need special software to file Form 990-N?

No special software is needed to file Form 990-N. The IRS website provides a free, secure online system for small tax-exempt organizations. With a desktop computer with stable internet access and a valid IRS account, organizations can file their electronic notice quickly and accurately without purchasing external software or paying unnecessary fees.

How much does it cost to file Form 990-N?

There are no fees or charges for filing Form 990-N. The IRS allows all eligible small exempt organizations to submit their electronic notice free of cost. Filing directly on the official IRS website ensures information security and provides instant confirmation, and you avoid extra fees from third-party services that charge for help.

What happens if I miss the filing deadline?

Missing one deadline does not cause penalties, but failing to file for three consecutive years leads to automatic revocation of tax-exempt status. Once revoked, your organization must reapply with the IRS for reinstatement. Filing on time every tax year ensures continued recognition as a compliant exempt organization without interruption in operations or eligibility.

Can I file Form 990-N on paper?

No, the IRS requires all small exempt organizations to file Form 990-N electronically through its official online system. Paper submissions are not accepted. Electronic filing through your IRS account guarantees accurate processing, secure recordkeeping, and faster confirmation, keeping your organization compliant with annual reporting and efficiently maintaining its tax-exempt status.

What if my organization had no financial activity?

Form 990-N must be submitted to the Internal Revenue Service (IRS) even if an organization does not engage in financial activity. This confirms the organization’s continued existence and compliance with annual reporting requirements. Filing the e-Postcard annually preserves your organization’s tax-exempt status even when gross receipts remain at zero or under the required reporting threshold.

How long should I keep filing records?

Keep your confirmation records and related IRS correspondence for at least three consecutive years. Maintaining these documents demonstrates consistent compliance with annual reporting requirements and helps resolve potential IRS inquiries. Proper recordkeeping ensures your organization has verifiable evidence of timely filing and protects its standing as a compliant exempt organization.

Where can I get technical assistance?

If you encounter technical problems while filing, contact IRS Customer Account Services at 877-829-5500. Representatives assist with login issues, system errors, or rejected submissions. Before calling, use a compatible browser, a stable internet connection, and valid IRS account credentials. This direct support helps resolve electronic filing concerns quickly and efficiently for exempt organizations.

Checklist for Form 990-N 2017 Instructions for Small Nonprofits